Why do banks use SMS over app for OTP?

Migster

The Starling app now generates an "online payment code" that updates every 20 seconds or so.

I'm not sure SMS OTP will be a long term solution, but it is the easiest/quickest to implement in the face of looming regulatory deadlines. Using biometrics will become more commonplace rather than relying on codes e.g. opening your banking app with your fingerprint to authenticate your online transaction. 

hoc

In app codes are quite common now outside UK. Sadly UK banks are behind, I have only seen OTP in app with a few special credit card providers. I can't believe it is one of cost saving. The basics are built into many apps as banks have phased out physical reader/code generators. If it really is cost then this would suggest there aren't enough SMS scams banks are having to compensate for to put in the effort.

forgotmyname

Scammers are already one step ahead of this.  Phone companies said its not secure for banks to use SMS for security.
But for 99.8% of the users it's probably enough. Just that small percentage that will get compromised.

masonic

forgotmyname said:

Scammers are already one step ahead of this.  Phone companies said its not secure for banks to use SMS for security.
But for 99.8% of the users it's probably enough. Just that small percentage that will get compromised.

It is fine if banks take that approach providing they quickly and readily refund customers that fall victim to SIM swap attacks.

michaels

I hate banks that try and insist on my installing their bloatware apps with their carp interfaces on my phone.  Then again I also hate text OTP as the signal is carp where I live so I have to go outside to receive them.  I don't much like having to carry around various secure key devices and those card reader tangs either although at least they are all common so only one is needed.

NedS

michaels said:

Then again I also hate text OTP as the signal is carp where I live so I have to go outside to receive them.

Can you enable WiFi calling on your phone? At least then if you are in a poor signal area you can still receive calls/TXTs over WiFi if available. Invaluable for me living and working in buildings with very poor phone signal but with WiFi access.

molerat

NedS said:

michaels said:

Then again I also hate text OTP as the signal is carp where I live so I have to go outside to receive them.

Can you enable WiFi calling on your phone? At least then if you are in a poor signal area you can still receive calls/TXTs over WiFi if available. Invaluable for me living and working in buildings with very poor phone signal but with WiFi access.

Something else that bugs me and something the useless OFCOM should sort out, all network providers should have wi-fi calling offered as standard.

NedS

molerat said:

NedS said:

michaels said:

Then again I also hate text OTP as the signal is carp where I live so I have to go outside to receive them.

Can you enable WiFi calling on your phone? At least then if you are in a poor signal area you can still receive calls/TXTs over WiFi if available. Invaluable for me living and working in buildings with very poor phone signal but with WiFi access.

Something else that bugs me and something the useless OFCOM should sort out, all network providers should have wi-fi calling offered as standard.

Agreed. My provider only supports it on certain handsets (some of the ones they sell). I would have thought as it's a software feature so should be supported on all hardware as long as the software supports it (Android, iOS etc), but apparently not. Not sure why it should be specific to different handsets. Anyway, I'm OT so apologies to the OP