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This paper describes a method of implementing two factor authentication using mobile phones. The proposed method guarantees that authenticating to services, such as online banking or ATM machines, is done in a very secure manner. The proposed system involves using a mobile phone as a software token for One Time Password generation. The generated One Time Password is valid for only a short user-defined period of time and is generated by factors that are unique to both, the user and the mobile device itself. Additionally, an SMS- based mechanism is implemented as both a backup mechanism for retrieving the password and as a possible mean of synchronization.
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