Senator Mark Villar supports Bangko Sentral directive for banks to phase out one-time password system

Senator Mark Villar welcomed the directive of the Bangko Sentral ng Pilipinas (BSP) requiring banks and financial institutions to phase out SMS-based one-time passwords (OTPs) and transition to stronger security measures by June 30, 2026.

The move aligns with the implementation of the Anti-Financial Account Scamming Act (AFASA), a measure principally sponsored and authored by Villar.

This measure seeks to strengthen protections for the public against online scams and unauthorized financial transactions.

“As Principal Sponsor and Author of the Anti-Financial Account Scamming Act, I welcome this move by the BSP. This is an important step toward making digital banking safer for everyone. Kailangan nating mas paigtingin ang proteksyon laban sa phishing, SIM swapping, at iba pang uri ng online scam,” Villar said.

Villar noted that SMS OTPs are no longer sufficient to safeguard users.

Many Filipinos continue to fall victim to phishing, SIM swapping, and account takeovers, he said, emphasizing the need for banks to adopt more secure and reliable authentication methods.

With this transition, the BSP will require financial institutions to implement advanced security features such as biometrics—including fingerprint and facial recognition—along with in-app approvals, push notifications, device-based verification, and other tools that are more difficult for scammers to exploit.

Villar described the directive as a crucial step in protecting Filipinos from increasingly sophisticated fraud schemes.

“Lahat po ng transaction ay digital na, pati na din ang panlilinlang ng mga scammer at hacker, kaya po napapanahon ang hakbang na ito ng BSP upang mas gawing ligtas at mapangalagaan ang transaksyon ng mga kababayan natin online,” he said.

He also expressed optimism that, through the continued implementation of AFASA, the country will achieve a more secure financial system.

“Patuloy nating babantayan ang pagpapatupad ng batas na ito upang matiyak na ligtas ang pera ng ating mga kababayan at napapanagot ang mga gumagawa ng panloloko,” he added.

-Paraluman News