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Neighboring central banks such as Singapore’s monetary authority are gradually phasing out OTPs for bank account logins
MANILA, Philippines – The Bangko Sentral ng Pilipinas (BSP) urges banks to upgrade their authentication methods as one-time passwords (OTP) may become obsolete in the future.
In an information session with reporters on Friday, January 31, BSP deputy governor Elmore Capule cited the fast-paced evolution of technology, with OTPs now being used in financial scams.
“So what we are saying is that we are encouraging the banks to go on a higher level of protection. While what they have now is maybe sufficient for now, we want them to continue to upgrade,” he said.
The central bank deputy governor admitted that removing OTPs will be difficult to do in the near future. But Capule urged Philippine banks to future-proof their security systems to prevent their clients from being defrauded.
“Banks or institutions should not be happy where they are right now. They have to look at the future because it’s evolving,” he said.
Capule said they will assess the upgrades banks make depending on the type of bank. For rural or thrift banks, for instance, they may be satisfied with OTPs.
“But if you’re looking at, say, the digital banks, then being a digital bank means your system should be more robust and more advanced,” he explained.
The BSP official did not name specific alternative authentication methods that banks should employ to replace the OTP. But methods such as passwordless authentication were earlier mentioned in a discussion with reporters.
Neighboring central banks such as Singapore’s monetary authority have begun gradually phasing out OTPs for bank account logins as local cases of financial scams rise.
The Cybercrime Investigation and Coordinating Center received 10,004 scam complaints in 2024 alone, with victims losing about P198 million. – Rappler.com
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