BNM Says No More OTP SMS: Banks Advised to Use Other Verification Methods

BNM Says No More OTP SMS: Banks Advised to Use Other Verification Methods

As more bank account siphoning incidents happen in the recent months, the general public are pressuring banking institutions to step in and combat this problem. BNM (Bank Negara Malaysia) has responded with a few advisories, summarized under BNM’s official Twitter:

1. Phase out SMS-based OTP (One Time Password) to a more secure authentication method.
2. Tighten fraud detection rules – any transactions made from suspected accounts involved in scams will be immediately blocked until account owner can be verified. They will be notified if their accounts are flagged as suspicious.
3. For first-time registers on new devices or online banking services, no transaction activity will occur until “Cooling-off period” ends.
4. Limits customers with only ONE device for transaction verifications.
5. All banks are to set up a hotline dedicated to fraud response for quicker response towards reports on fraud activity.

Additionally, the institution also require banks to provide easy ways for customers to suspend their own accounts if they believe the account is compromised. Customers then are allowed to re-activate it after a “reasonable” period to maintain account security.

BNM Governor, Nor Shamsiah, has noted that such measures will certainly cause some inconvenience due to increased security measures, but stressed on such measures are critical to protect the interests of the customers.

More information can be read through this Twitter thread: (alternatively, click here)

Source

Pokdepinion: A step in the right direction. I would much prefer a better security over convenience in cases like this.