The UAE Central Bank’s recent decision to phase out one-time passwords (OTPs) and adopt stronger authentication methods has positioned the country as a leader in digital banking security within the Gulf Cooperation Council (GCC). A new study by cybersecurity firm Proofpoint reveals a concerning trend: while the UAE is strengthening its defenses, many other GCC banks are showing a decline in their adoption of a key anti-phishing protocol, DMARC. The percentage of GCC banks with a published DMARC record has dropped from 96% in 2024 to 77% in 2025, with even fewer enforcing the strictest security policies. This lapse is critical, as phishing remains the most common method for fraud.
The UAE’s Proactive Stance vs. Regional Complacency
The UAE’s move to replace OTPs with more secure options like biometric logins, app-based notifications, and token-driven multi-factor authentication aligns with global best practices. This proactive approach sets the UAE apart from its neighbors, where banks still rely heavily on outdated fraud-prevention tools. This creates a “patchwork of protections” across the Gulf, leaving customers in countries like Oman, Bahrain, and Kuwait more vulnerable to cybercrime. This divergence in security standards not only increases risk but also has reputational implications, as the UAE reinforces its position as a trusted global financial hub.
