Dubai has implemented a new banking rule that replaces one-time passwords (OTPs) with in-app transaction approval alerts for UAE residents. This update is designed to enhance security by protecting users from phishing and social engineering scams that exploit OTPs to authorize fraudulent payments.
How the New System Works
With the new approach, customers will receive transaction approval alerts directly within their banking apps. This creates a more secure and convenient way to authenticate payments, reducing the risk of unauthorized transactions.
Benefits of In-App Alerts
- Improved Security: Minimizes scams related to OTP theft and misuse.
- Enhanced User Convenience: Eliminates issues caused by delayed or failed OTP delivery.
- Alignment with Global Standards: Adheres to international best practices in the banking industry.
- Supports Digital Transformation: Advances the UAE’s goals for technological innovation in financial services.
Implementation and Recommendations
The new system is already effective, with banks collaborating to ensure a smooth transition for customers. Users are encouraged to keep their banking apps updated to start using the in-app alert feature right away.
Security experts advise that, despite this advancement, customers should remain cautious and avoid sharing any banking details. The UAE continues to lead in adopting innovative measures to safeguard financial assets.
About The Author
