The Bangko Sentral ng Pilipinas (BSP) is considering removing the use of OTPs (one-time pins) for digital bank transactions as the organization believes it is becoming “obsolete”.
According to BSP Deputy Governor Elmore Capule, the agency is looking for other ways to make digital banking “future proof” to fight fraudulent transactions.
In a The Philippine Star Life news article, Capule says that technology now is efficient however, they will not be that efficient in the near future. “If you say that what we have now is efficient, next week or next year, it may no longer be.”
He also adds that “we are encouraging banks to go to a higher level of protection. While what we have now may be sufficient, we want them to continually upgrade”, say Capule during the 2025 Media Information Session in Baguio City.
According to BSP Deputy Governor Memerto Tangonan, OTPs are becoming obsolete. He mentions that the Monetary Authority of Singapore and the Bank of International Settlements even discourage relying on OTPs.
Biometric authentication is one of the other security methods being considered that banks can adopt, Capule said. Adding that a transition period would be necessary before shifting to other measures.
OTPs are a common security measure used by many financial institutions for safe online transactions. However, these OTPs are now sought after by scammer who trick individuals into sharing this password to gain access to their accounts, the Philippine Star Life report says.
Nearly P198 million in financial losses and 10,004 cybercrime complaints have been recorded by the Cybercrime Investigation and Coordinating Center in 2024.