A major retail bank in Singapore plans to phase out one-time passwords (OTPs) for its digital token users over the next three months.
Presenter Monetary Authority of Singapore (MAS) The move, in collaboration with the Association of Banks in Singapore (ABS), aims to better protect customers from phishing scams.
According to the Singapore Police Force’s Fraud and Cybercrime Annual Report 2023, phishing scams were among the top five types of fraud last year, with at least S$14.2 million lost to these scams.
Customers who have activated digital tokens on their mobile devices will need to use these tokens when logging into their bank accounts via a browser or mobile app.
The digital token authenticates login without the need for an OTP, which can be stolen or tricked from customers by fraudsters.
If you haven’t yet activated your digital token, we recommend doing so to reduce the risk of credential phishing.
OTPs were introduced in the 2000s as a multi-factor authentication method to enhance online security.
However, advances in technology and sophisticated social engineering tactics have made it easier for fraudsters to phish for the OTP, for example by setting up fake banking websites.
The new measures are intended to strengthen the authentication process and make it harder for fraudsters to access accounts via mobile devices without explicit permission.
Phishing scams remain a major concern in Singapore, and banks, MAS and the Singapore Police Force continue to work together to develop and implement measures to combat evolving fraudulent activity.
Onan I Boom
ABS director Ong Ann Ai Boon said:
“This measure provides additional protection against unauthorized access to customers’ bank accounts.
“While this may cause some inconvenience, these measures are necessary to prevent fraud and protect our customers.”
Lu Xiu Yi
“MAS is committed to providing the highest level of protection to its customers, clients and the public,” said Lu Siu Yi, assistant managing director (policy, payments and financial crime) at MAS.
“MAS will continue to work closely with banks to tackle digital banking fraud to protect consumers.
This latest measure complements the good cyber hygiene practices that customers must continue to practice, such as protecting their banking credentials.”
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