DITO complies with OTP phaseout
DITO Telecommunity is rolling out an authentication service that would do away with one-time passwords (OTPs), ahead of a June 30 deadline to phase out SMS-based OTPs for high-risk bank transactions.
Called DITO Verify, the service uses a “silent network authentication” to verify users through the mobile network itself.
“Instead of an SMS code that can be stolen or rerouted, verification happens automatically and securely through the DITO mobile network itself,” DITO chief commercial officer Adel Tamano says.
“There [are] no codes, no frictions, no opportunity for fraud,” Tamano adds.
DITO says the new system authenticates users in the background within two to three seconds.
Instead of requiring users to receive and enter a code, it verifies information linked to the subscriber’s SIM card and mobile number through the network. The company says this reduces exposure to phishing attacks, social engineering schemes and SIM-swap fraud.
This commercial rollout comes ahead of the deadline for banks to comply with the implementing rules of the Anti-Financial Account Scamming Act, which require financial institutions to stop using SMS-based OTPs for high-risk transactions.
DITO developed the service with US-based authentication technology provider Shush Inc., whose platform enables telecommunications operators to offer network-based verification services through application programming interfaces.
With the rollout, Tamano says DITO is seeking partnerships with banks and fintech firms.
“We’re open for partnership,” he says. “Let us build the authentication layer and the protection that your customers deserve.”
Department of Information and Communications Technology Undersecretary David Almirol Jr. says the government is willing to explore the system for platforms such as the eGovPH app, which uses OTP-based verification for its services.
DITO, led by Davao-based businessman Dennis Uy, entered the telecommunications market in March 2021 as a challenger to the long-dominant Globe Telecom and PLDT duopoly.
