In a recent announcement by the Monetary Authority of Singapore (MAS) and The Association of Banks in Singapore (ABS), major retail banks in Singapore are set to overhaul their security protocols.
Over the next three months, these banks will phase out the use of One-Time Passwords (OTPs) for account logins by customers who are users of digital tokens. This initiative is aimed at providing better protection against phishing scams, which have seen a rise in frequency and sophistication.
For customers who have enabled digital tokens on their mobile devices, these tokens will be required for logging into their bank accounts through browsers or mobile banking apps. The digital tokens will authenticate logins without the need for OTPs, which are vulnerable to theft and can be exploited by scammers through tactics such as fake banking websites.
The reliance on OTPs was initially introduced in the early 2000s as part of a multi-factor authentication strategy to bolster online security. However, advancements in technology and increasingly clever social engineering strategies employed by scammers have made it easier for them to intercept or solicit OTPs under false pretenses. The new authentication method aims to tighten security, making it significantly more challenging for unauthorized parties to access customers’ accounts and funds.
Despite these advances, phishing scams continue to pose significant challenges in Singapore. In response, banks are intensifying their collaboration with MAS and the Singapore Police Force, seeking to develop and implement robust measures to reinforce the resilience of the banking sector against these threats.
Mrs. Ong-Ang Ai Boon, Director at ABS, highlighted the importance of these new measures. “This measure provides customers with further protection against unauthorised access to their bank accounts. While they may give rise to some inconvenience, such measures are necessary to help prevent scams and protect customers.”
Keep up with all the latest FinTech news here.
Copyright © 2024 FinTech Global
