UAE Central Bank’s Bold Move
The Central Bank of the UAE has mandated that all licensed financial institutions must phase out SMS and email OTPs by March 2026. This regulation marks a turning point in digital banking security, setting a global precedent for stronger and more reliable authentication methods.
Why SMS and Email OTPs Are No Longer Secure?
Traditional OTPs sent via SMS or email are increasingly vulnerable:
• SIM-swap attacks allow criminals to hijack phone numbers.
• Phishing schemes trick users into entering OTPs on fake websites.
• Message interception exploits outdated telecom protocols.
• Delays and delivery failures frustrate customers.
• High telecom costs burden financial institutions.
These flaws have led to billions in fraud-related losses globally. The UAE’s regulation is not only about fraud prevention but also about modernizing payment infrastructure and improving customer trust.
The Rise of Passwordless Authentication
Instead of relying on phishable codes, banks are now shifting toward app-based and biometric authentication. Users confirm transactions directly within their mobile apps using Face ID, Touch ID, or secure PINs—a method that is both faster and far more secure.
This transition aligns perfectly with global fintech trends, where regulators and banks are increasingly adopting passwordless authentication as the new industry standard.
How EnSecure Delivers Compliance and Beyond?
EnSecure is Enqura’s advanced passwordless authentication platform, built to meet and exceed the UAE’s 2026 mandate. It offers:
• Passwordless Login with built-in biometrics (Face ID, Touch ID).
• Session binding and device integrity checks, blocking jailbroken or malware-infected devices.
• Asymmetric transaction signing for high-risk operations.
• Secure communication channel with full encryption across mobile, web, and server.
• Scalable architecture, supporting multiple applications and multiple device activations.
• PDF document signing/approval to extend security beyond logins.
These capabilities ensure not only regulatory compliance but also a future-proof digital banking experience.
Benefits for Financial Institutions and Customers
• Stronger Security: Reduced fraud from phishing, SIM-swaps, and replay attacks.
• Seamless Experience: Faster, frictionless logins and approvals.
• Cost Efficiency: No more reliance on expensive SMS infrastructure.
• Regulatory Advantage: Stay ahead of compliance deadlines and competitors.
March 2026: The Compliance Deadline
With the UAE setting the first global standard against OTPs, financial institutions that act early will gain both compliance and customer trust. March 2026 is not far away, and preparation must begin now.
Conclusion: Move From Codes to Trust
It’s time for banks and fintechs to leave phishable OTPs behind and embrace frictionless, passwordless trust.
Learn how EnSecure can help your institution comply with UAE regulations and deliver a next-generation authentication experience.📩 sales@enqura.com
Additional Resources
entrepreneur.com
gulfnews.com
