Banks in Singapore to phase out OTPs for digital token users in next 3 months

Country: Major banks in Singapore will gradually ban customers who use online tokens for bank accounts logins.

This will be gradually implemented over the next three decades and is intended to improve customer protection from phishing scams, according to the statement. the Association of Banks in Singapore ( ABS ) and the Monetary Authority of Singapore ( MAS ) on Tuesday ( July 9 ).

Customers who use natural tokens will not be affected by the move. The three big banks in Singapore are DBS, OCBC, and UOB.

” The digital token will authenticate customers ’ login without the need for an OTP that scammers can steal, or trick customers into disclosing,” they said.

Customers who have n’t yet activated their digital tokens are urged to do so to reduce the chance of having their credentials phished are strongly advised to do so. “

In order to improve online protection, the use of OTPs was first used in the 2000s as a multi-factor identification option.

According to MAS and ABS, technological advancements and more sophisticated social engineering strategies have made it possible for scammers to target customers ‘ OTP more easily, for instance by creating fake bank webpages that resemble the real ones, for example.

Scammers can get a company’s accounts and funds without the customer’s obvious license using his portable device thanks to this most recent update, which will enhance the authentication process. “

According to them, Singapore continues to be concerned about hacking scams. According to police statistics, at least S$ 14. 2 million ( US$ 10. 5 million ) was lost to such scams next month.

MAS continues to collaborate closely with banks to fight modern banking scams, according to Ms. Loo Siew Yee, associate managing director for plan, payments, and economic crime.

This most recent rule will complement customer-required great cyber hygiene practices, such as protecting their banking credentials. “

Ong-Ang Ai Boon, director of ABS, added:” This determine gives consumers additional protection from illegal entry to their bank balances. While they may give rise to some trouble, like steps are necessary to help avoid schemes and protect users. “