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The successful verification of a user or an entity wishing to use a computer based information system, lies at the core of the security of the systems. Although a vast number of different verification techniques have been proposed, password based methods remain the predominant method of choice. For this reason, it is essential that these methods be as effective as possible. The conventional password authentication system is framed by set of rules like it should be of minimum 6 characters long, should contain alphanumeric characters and even with special symbols. The conventional password system is much secured unless until the password is not known to others or it is not hacked by any hacker. If the password is known to anyone other than the original account holder, he/she is free to log in to the account and view personal data or impersonate the true owner. Hence an alternative methodology should be designed so that the security and authenticity is maintained. Hence we propose an idea which uses dynamic password system for authentication and hence security and thereby providing an effective and efficient solution to the above said problem.