Security token: what it is and what are the advantages of using it

You have probably encountered a situation where, during an attempt to access a system or application, or even during a bank transaction, a code was requested in addition to your password. This security measure, which is increasingly present in your daily life, is called a token.

Tokens—or security tokens—emerged as a response to the growing need to improve the security of user authentication in digital systems. While password authentication was a common method for many decades, the need for more secure methods led to the development of security tokens.

In this article, you will understand more about the security token, its operation and advantages. Keep reading!

What is a security token

In short, a security token is a random sequence of numbers generated on physical or digital devices, used to authenticate a user's identity. This technology ensures that only authorized individuals have access to certain resources or information.

Like the information security It is a priority for companies and professionals, security tokens end up being an essential part in the implementation of protective measures and are widely used to protect sensitive systems and data.

Security tokens currently fall into two types:

Physical tokens

As its name suggests, it uses physical devices, such as electronic keyrings or smart cards, that generate temporary codes or store digital certificates. It is widely used in financial and government institutions, i.e. places that require a critical level of security, including physical security.

Digital tokens

It uses digital means to assist in the authentication of the user's identity, either through applications or software that generate authentication codes used on mobile devices, such as Google Authenticator or Authy, biometric sensors, or even the use of SMS and e-mail. Currently, this is the most common and used security token model.

In Clicksign, for example, the security token is sent as a six-character code via SMS, WhatsApp, or email from the person, who receives the string of characters and uses it to sign a document. In this way, it is possible to generate further proof of the signer's identity and maintain the integrity of the document.

How does the security token work

In addition to authenticating a user's identity, the security token also serves to authorize specific actions. The codes generated for the tokens are generally temporary and expire after a short time interval, which strengthens security against fraud and attacks. Although there are several types of security tokens, you will understand below the two most commonly used types today: time-based tokens and event-based tokens.

Time-based tokens - TOTP

The token, whether physical or digital, contains an internal clock synchronized with the authentication server. Thus, when using a token, the user generates an authentication code that is based on the current time and on a secret key previously shared between the token and the server.

Thus, the operation turns out to be simple:

• The user enters the code generated by the token into the authentication system.
• The server generates a code (also based on the current time and on the same shared secret key).
• Once the codes match, the user is authenticated.

Event-based tokens - HOTP

In the case of HOTP, the token generates an authentication code based on an internal counter and a shared secret key. Each time this token is used, the counter starts automatically. Like this:

• The user enters the code generated by the token into the authentication system.
• The server, which has a counter synchronized with the token, generates a code based on the current counter and the secret key.
• Once the codes match, the user is authenticated.
• After authentication, the server increments its counter to keep in sync with the token counter.

Why do you need the token

Although technology has created many possibilities for the market, its advances have also ended up being used for fraudulent and illegitimate purposes. Just as new opportunities have emerged to implement technological resources for good, people also use them for evil.

Thus, the security token ends up being a necessity to protect your company from malicious individuals. No wonder, there are currently several forms of authentication, and it's up to you to consider these functionalities as a priority in your company and enter them as soon as possible.

This can be done in a variety of ways. For example, if you use electronic signatures in your business routine, you can count on security solutions - such as the token - in your signatures, verifying the identity of your signers.

Advantages of using the token as a security measure

As you've seen, security tokens offer a number of significant advantages for protecting data and systems. They protect against various types of cyberattacks and are flexible and easy to implement, making them a valuable information security tool for companies. Check out some of these advantages:

Multifactor Authentication - MFA

Security tokens are often used as part of a multi-factor authentication (MFA) system, where, in addition to the password (first factor), a second factor (the token) is required. MFA increases security significantly, because even if a user's password is compromised in some way, the attacker would still need the token to access the account.

User access control

Security tokens can be used to ensure that only authorized users have access to sensitive systems, platforms, and data. This allows companies to implement strict access control policies, ensuring that only verified individuals access their information.

Ease of deployment and use

Many digital tokens can be easily distributed and configured using mobile apps. The setup is simple and fast, allowing users to start using security tokens without technical difficulties.

Start using the security token in your company

Whatever your segment, you can invest in security without fear. Finding solutions that offer the security token as a data protection measure is a great way to make your company more secure and free from attacks and fraud.

At Clicksign, you can find electronic signature solutions and several authentication options that promote the security of your documents, the token being one of them. Click here and get to know the platform!