Abstract: A system for authenticating a user located at a requesting node to a resource such as a host application located at an authenticating node using one-time passwords that change pseudorandomly with each request for authentication. At the requesting node a non-time-dependent value is generated from nonsecret information identifying the user and the host application, using a secret encryption key shared with the authenticating node. The non-time-dependent value is combined with a time-dependent value to generate a composite value that is encrypted to produce an authentication parameter. The authentication parameter is reversibly transformed into an alphanumeric character string that is transmitted as a one-time password to the authenticating node. At the authenticating node the received password is transformed back into the corresponding authentication parameter, which is decrypted to regenerate the composite value.