Say Goodbye to SMS OTPs & Hello to Next Level Security
OTP – Filipino bank users will soon need to adapt as the BSP phases out vulnerable one-time passwords in favor of stronger authentication methods.
The Bangko Sentral ng Pilipinas (BSP) is set to prohibit financial institutions from using short message service (SMS) or email-based one-time passwords (OTP) starting June 30, 2026, in a move to strengthen digital banking security across the country.
According to reports, the BSP highlighted that OTPs sent via SMS or email are frequently exploited in text hijacking and SIM swapping schemes. In line with Republic Act No. 12010, also known as the Anti-Financial Account Spamming Act (AFASA), this initiative aims to protect citizens against various cybercrimes, including phishing and SIM-swap fraud.
The shift from SMS and email-based OTPs reflects the central bank’s commitment to ensuring safer and more secure digital banking practices for Filipino users. With cyber threats on the rise, the BSP encourages banks and digital financial service providers to adopt more advanced security measures that are harder to compromise.
To replace SMS or email-based OTPs, several alternatives will be implemented:
- In-App OTPs and Push Notifications: Transaction approvals will now occur directly within the secure and encrypted environment of the banking app, minimizing exposure to external threats.
- Biometrics: Security will rely on the account owner’s unique biological identifiers, such as fingerprint scanning or facial recognition, to ensure account access remains safe and personal.
- Behavioral Biometrics: This advanced authentication method verifies a user’s identity through patterns such as typing speed, swipe gestures, and device movements, adding an extra layer of security beyond traditional credentials.
- Silent Authentication: This method directly verifies the mobile number with the telecom network without the need for the user to wait for a verification code, making the process seamless and efficient.
By adopting these modern security measures, the BSP hopes to significantly reduce digital banking fraud while encouraging the public to embrace safer financial technology practices. Filipino account holders are advised to familiarize themselves with these new authentication methods to ensure smooth transactions once the policy takes effect.
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