Singapore Banks Phasing Out OTPs in Favor of Digital Tokens

It has been around two decades since Singapore started issuing one-time passwords (OTPs) to users to aid them in logging into bank accounts. However, the city-state is planning to ditch this method of authentication shortly.

Over the next three months, major retail banks in Singapore are expected to phase out the use of one-time passwords (OTP) for account log-in by digital token users as part of their transition away from one-time passwords. 

With an activated digital token on their mobile device, customers will need to either use the token to sign in to their bank account through a browser or the mobile banking app on their mobile device.

In a joint statement on Tuesday (Jul 9), the Monetary Authority of Singapore (MAS) and The Association of Banks (ABS) said that, while the digital token is designed to authenticate customers’ logins, there will not be an OTP needed to prove identity, which scammers can steal or trick victims into disclosing. 

There is also a strong recommendation to activate digital tokens by those who haven’t already done so, as this will greatly reduce the chance of having one’s credentials stolen by unauthorized personnel.

According to The Monetary Authority of Singapore (MAS) and The Association of Banks in Singapore (ABS), within the next three months, major retail banks in Singapore will gradually phase out the use of One-Time Passwords (OTPs) to log into bank accounts by customers who are using digital tokens. 

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Singapore Banks Phasing Out OTPs in Favor of Digital Tokens