Singapore banks phase out OTPs in next three months

Singapore banks will phase out one-time passwords (OTPs) for logins over the next three months to better protect customers against fraud risks.

In a joint press release, the Monetary Authority of Singapore (MAS) and the Association of Banks in Singapore (ABS) said that banks in Singapore will gradually eliminate the use of OTP for account logins to better protect customers against fraud risks.

The process will be implemented over the next three months. Users who are using physical tokens will not be affected. However, authorities are urging them to switch to digital tokens.

Singapore banks to phase out OTPs in next three months

Digital tokens in banking apps will send a notification to the customer asking for approval before making a transaction. This process is called second-factor authentication. As such, fraudsters need to steal the victim's phone to remotely make any transactions once the digital token is installed.

On the other hand, OTP can be easily compromised through social engineering attacks or intercepted through spyware on phones. Therefore, OTP will not be effective against phishing attacks. According to Singapore police, phishing attacks cost victims at least $14.2 million each year.

Additionally, banking apps are equipped with anti-malware capabilities that block all access to the app if malicious code is detected on the device.

OTP was introduced in the 2000s as a multi-factor authentication option to enhance online security. However, advances in technology and more sophisticated social engineering tactics, such as setting up fake banking websites that closely resemble real ones, have made it easier for criminals to steal customers' OTPs.

The digital token will also help strengthen the authentication process, making it difficult for fraudsters to access customer accounts and funds without approval on the customer's device, according to the two agencies.

ABS Director Ong-Ang Ai Boon said that while it may cause some inconvenience, such measures are necessary to help prevent fraud and protect customers.

MAS assistant director Loo Siew Yee also added that the authority will “continue to work closely with banks to protect consumers from digital banking scams”.

Source: https://baoquocte.vn/ngan-hang-singapore-loai-bo-dan-otp-trong-ba-thang-toi-279101.html