The Bangko Sentral ng Pilipinas (BSP) has ordered banks, e-wallet providers, and other supervised financial institutions to reduce the use of SMS and email OTPs for high-risk transactions.
Under BSP Circular No. 1213, institutions will be required to reduce their reliance on SMS and email one-time passwords (OTPs) for high-risk transactions and important account changes.
Instead, they must adopt more secure authentication methods such as biometrics, passkeys, and device-based verification.
The circular also requires financial institutions to enhance fraud monitoring systems and introduce additional account protection features to detect and prevent suspicious activities.
Covered institutions have until June 30, 2026 to comply.
Failure to meet the requirements could result in liability for losses from fraudulent transactions.
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