OTP to be replaced by TPIN in banking apps from January 2025

ISLAMABAD: The State Bank of Pakistan (SBP) has announced new regulations to enhance the security of digital payments amid rising online fraud.

These changes apply to banks and microfinance institutions and will take effect from January 1st, 2025.

Key updates include the replacement of SMS-based One Time Passwords (OTPs) with more secure Transaction PINs (TPINs) or Financial PINs (FPINs) for mobile and internet banking transactions.

Banks must also send free transaction alerts via push notifications, in-app messages, and emails, shifting away from traditional SMS alerts, which are frequently targeted by scammers.

Banks are required to keep push notifications enabled at all times and maintain detailed logs of transaction alerts for dispute resolution. In the case of fraud or unauthorised transactions, banks must compensate affected customers.

The Pakistan Telecommunication Authority (PTA) has also issued a warning about the rising threat of phishing scams. They’ve stressed that they will never ask for sensitive information like passwords or OTPs through calls, messages, or emails.

This is part of the central bank’s move to educate people on how fraudsters are using digital platforms to steal personal and financial data.

They’ve also reminded users not to click on strange links and to refrain from sharing any personal or financial details with strangers.

For those who have experienced suspicious activity, the PTA has outlined steps to report fraud, including blocking SIM cards and numbers through their app or website.

Both the SBP and PTA are making efforts to safeguard people’s financial security as scammers become more sophisticated in exploiting digital spaces.

Read next: Pakistani rupee gains 13 paisa against US dollar in early trade