BSP to banks: Replace OTPs as cybersecurity risks climb

THE Bangko Sentral ng Pilipi-nas (BSP) said banks should transition away from the use of One-Time Pins (OTPs) as an authentication mechanism for financial transactions and other high-risk activities given the elevated risks of SIM swap fraud, phishing and related attacks.

- ANPREA SAN JUAN

In line with this, the central bank said in a draft circular it has recognized server-side biometric authentication as a “strong and acceptable authentication mechanism” for high-risk transactions and critical account changes in electronic financial applications.

Risks associated with the implementation of the mechanism, however, should be “adequately addressed” and “sound practices” or minimum control requirements should likewise be adopted.