The Monetary Authority of Singapore (MAS) has announced in a joint statement with The Association of Banks in Singapore (ABS) that major retail banks in Singapore will progressively phase out using One-Time Passwords (OTPs) for digital token users logging into their bank accounts.
The move will take place over the next three months to better protect them against phishing.
Customers who have activated their digital token on their mobile phones will have to use it to log into their accounts on the app or via the bank’s respective browser.
Source: Robin Worrall on Unsplash
The token will then authenticate their login without requiring an OTP which scammers can steal or trick customers into revealing.
MAS and ABS also strongly encouraged customers who have not activated their digital tokens to do so.
This would reduce the risk of having their credentials phished.
The use of OTP debuted in the 2000s as a multi-factor authentication option to enhance online security, MAS and ABS said.
However, scammers have since used technological developments and more sophisticated social engineering tactics to more easily phish customers’ OTP.
Source: Jonas Leupe on Unsplash
For instance, they would do so by setting up fake bank websites closely resembling the actual websites.
Phasing out the use of the OTP will thus strengthen the authentication process. It will make it harder for scammers to access a customer’s account and funds without their explicit authorisation via their mobile devices.
“Phishing scams remain a concern in Singapore, and banks continue to work closely with MAS and the Singapore Police Force to develop and introduce solutions and measures to strengthen our collective resistance in the ever-evolving scam landscape,” MAS and ABS said.
Director of ABS Mrs Ong-Ang Ai Boon noted that the measure protected customers further 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,” she said.
Assistant Managing Director of MAS Ms Loo Siew Yee added that the measure complements good cyber hygiene practices that customers must continue to practise, such as safeguarding their banking credentials.
She stated, “MAS continues to work closely with banks to protect consumers by leaning hard against digital banking scams.”
Also read: DBS, OCBC & UOB introducing money lock features from 27 Nov, no digital transfers allowed
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Featured image adapted from Robin Worrall on Unsplash.
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