Post by : Shakul

Dubai, United Arab Emirates — More UAE banks are strengthening digital security as new regulations from the Central Bank of the UAE require financial institutions to phase out SMS and email one‑time passwords (OTPs) by the end of March 2026.

Under the updated framework, all licensed banks must adopt in‑app approval systems and biometric authentication — such as fingerprint or facial recognition — for online banking and transaction verification. The move is part of a larger regulatory push to enhance fraud detection, improve operational resilience, and reduce reliance on easily exploitable OTP codes.

Shift to Biometric and App Authentication

Banks across the UAE have already started eliminating traditional SMS and email OTPs. Customers will now complete authentication using mobile banking apps, approving transactions through biometric identifiers or secure PINs directly within the app interface.

The transition affects everyday activities like online shopping, fund transfers, and card payments, which historically depended on six‑digit OTPs sent via text message. The Central Bank’s directive aims to reduce vulnerabilities linked to phishing, SIM‑swap attacks, and other forms of credential theft that compromise text‑based codes.

Focus on AI, Fraud Prevention and Governance

Alongside authentication changes, the central bank has issued guidance on the responsible use of artificial intelligence (AI) in banking. This includes frameworks for oversight, accountability, and safeguards for AI tools used in risk monitoring, fraud detection, and customer profiling.

Cybersecurity experts say the reform is timely as fraud attempts — including impersonation scams and social media‑driven phishing — continue to rise across the Middle East. Banks are increasing investment in behavioral intelligence and real‑time scam disruption tools to protect customers and maintain trust in digital finance.

Residents are encouraged to update to the latest versions of their banking apps and enroll biometric authentication features ahead of the March 2026 deadline to ensure uninterrupted and secure access to online financial services

#Global #world #UAE