Cost Issues for Businesses: Reducing the Expense of OTPs

Running a business isn't cheap, and when you start adding up the costs of security measures like One-Time Passwords (OTPs), those expenses can quickly spiral out of control. If you’re like me, you’re constantly on the lookout for ways to trim the fat without cutting corners where it really matters—security.

The Real Cost of OTPs

Let's get real for a moment. OTPs are fantastic for keeping your accounts secure, but every SMS, every app notification, and every token has a price tag attached to it. For companies dealing with high volumes of transactions, this can add up to significant expenses.

• SMS Costs: Depending on your provider and the region you're operating in, each OTP sent via SMS could cost a few cents. Multiply that by thousands, or even millions, and you’ve got yourself a hefty bill.
• App Development: If you’ve opted for a custom app-based OTP solution, there’s the initial development cost plus ongoing maintenance. This isn’t a one-time expense.
• Support Costs: Don’t forget the cost of customer support when users run into issues with their OTPs—whether it’s delivery problems or just confusion over how to use them.

Finding Ways to Cut Costs Without Cutting Security

So, how do you keep your budget in check while still keeping your data secure? Here are a few strategies that have worked for me:

1. Embrace App-Based OTPs

Sure, there’s an upfront cost to developing or integrating an app, but once it’s up and running, the per-transaction cost is much lower compared to SMS. Plus, users appreciate the added convenience and security.

2. Negotiate with Providers

If you’re sticking with SMS, shop around and don’t be afraid to negotiate. Providers often offer discounts for high volumes, and you might be surprised at how much you can save with a little haggling.

3. Implement Adaptive Authentication

Not every transaction needs an OTP. By implementing adaptive authentication—where the system evaluates the risk of each login attempt—you can reduce the number of OTPs sent. High-risk transactions get the full treatment, while lower-risk ones might just require a password.

The Balancing Act: Cost vs. Security

It’s a tough balance. On one hand, you’ve got the CFO breathing down your neck about expenses. On the other, you know that skimping on security isn’t an option. Here’s my take: it’s about being smart with your resources.

• Prioritize High-Value Transactions: Focus your OTP efforts on the transactions that matter most. Not every login or purchase needs the same level of security.
• Leverage Multi-Factor Authentication (MFA): MFA can sometimes reduce the reliance on OTPs, combining something you have (like a hardware token) with something you know (your password) for a strong, cost-effective solution.

Conclusion: Making Smart Choices

At the end of the day, it’s about making smart choices that don’t compromise on security while keeping an eye on the bottom line. By exploring different OTP delivery methods, negotiating with providers, and implementing adaptive authentication, you can keep your costs in check without sacrificing the security that your business—and your customers—depend on.

Let’s be real: it’s not about spending less, it’s about spending smarter. And trust me, your budget—and your security team—will thank you for it.