*** ----> Bahraini MPs propose OTP verification to enhance online banking transactions | THE DAILY TRIBUNE | KINGDOM OF BAHRAIN

Bahraini MPs propose OTP verification to enhance online banking transactions

TDT | Manama     

The Daily Tribune – www.newsofbahrain.com

Five Bahraini lawmakers have submitted an urgent proposal urging the Central Bank of Bahrain (CBB) to mandate one-time password (OTP) verification for all online transactions and restrict them within the account’s credit limit.

The proposal, submitted by MPs Khalid Buanaq, Mariam AlDhaen, Mohammed Al Ahmed, Zainab Abdulameer, and Mohammed Al Ma’arefi, calls for the CBB to issue directives to all banks and financial institutions, making OTP verification mandatory for all online transactions and preventing their completion without it.

Additionally, the proposal seeks to restrict these transactions within the account’s credit limit, further enhancing security measures.

The explanatory memorandum accompanying the proposal highlights the increasing prevalence of online scams, fraud, and theft of smart cards through sophisticated and difficult-to-detect methods.

It emphasises the ease with which stolen cards can be used for online purchases, posing a significant risk to account holders.

Credit limit

The memorandum further stresses the importance of preventing online transactions from exceeding the account’s credit limit, minimising the potential loss in the event of card data theft.

It stresses the need for stricter oversight of online transactions and urges the CBB to issue necessary instructions to banks and financial institutions to implement solutions that prevent the growing instances of online theft and fraud.

The MPs have requested urgent approval of the proposal, citing the critical need to enhance online banking security and protect account holders from financial losses.