GCash to shift to in-app OTPs for authentication

GCASH will roll out in-app one-time passwords (OTPs) via push notifications to replace SMS-based authentication as it bolsters its guards against phishing scams and financial fraud.

“Our upgrade to in-app OTPs is a strategic move to put an end to phishable SMS OTPs. We will shift users to instant, GCash app-verified authentication, to increase the security of their daily transactions,” GCash Chief Information Officer Miguel Geronilla said in a statement on Monday.

The feature is scheduled to be operational by June 22. GCash said users should have their push notifications for the app enabled to avoid disruptions in their transactions and account activities. 

The e-wallet giant’s move comes ahead of the June 30 deadline set by the Bangko Sentral ng Pilipinas (BSP) under the implementing rules of the Anti-Financial Account Scamming Act, which require financial institutions to adopt new fraud management systems and security measures for consumers as alternatives or to supplement OTPs.

GCash said switching to in-app OTPs will prevent SMS-based scams that are being used to hack into user accounts.

“By sending OTP requests directly to the user’s authenticated GCash app, GCash ensures that only the intended users can receive and use the unique OTPs, protecting them from unauthorized access,” it said.

The shift will also result in faster transactions as it eliminates the need to switch apps, type codes, or wait for text messages to arrive.

The introduction of in-app OTPs is part of GCash’s efforts to enhance security through multi-factor authentication to reduce the risk of account takeovers.

It adds to GCash’s existing security measures, including Know-Your-Customer (KYC) verification and facial recognition verification.

GCash is operated by G-Xchange, Inc., a wholly owned subsidiary of Globe Fintech Innovations, Inc. (Mynt).

In the first quarter, Globe Telecom, Inc.’s equity earnings from Mynt increased 8% to P1.9 billion, accounting for 30% of the parent’s net income before tax. — Aaron Michael C. Sy