Singapore plans hardware tokens for banking security

The Monetary Authority of Singapore (MAS) is working with banks to issue FIDO-compliant devices that connect to a user’s phone or computer before approving high-value transactions

Singapore is preparing what could be the world’s first nationwide rollout of hardware tokens for online banking authentication, according to The Straits Times.

The Monetary Authority of Singapore (MAS) is working with banks to issue FIDO-compliant devices that connect to a user’s phone or computer before approving high-value transactions.

The move marks a return to physical tokens last seen in the early 2000s, when banks used number-pad devices to generate one-time passwords for online banking.

Digital tokens embedded in mobile apps replaced them in 2017, but a rise in online scams has prompted regulators to bring hardware back into the mix.

MAS has said users may experience more friction but maintains that security must take precedence over convenience.

Reported losses from phishing scams have surged from about 5.60 million in the first half of 2023 to roughly $23.02 million in the same period of 2025, raising concerns about public confidence in digital banking.

The new tokens will rely on the Fast Identity Online (FIDO) standard, which replaces passwords and one-time codes with cryptographic keys stored separately on the token and the bank’s system.

This makes phishing harder, as criminals would need the physical device to gain access.

Still, the tokens have limits. Setting them up could be difficult for less tech-savvy users, and phishing threats will persist if merchants and websites do not adopt FIDO authentication.

Many scams still involve victims entering card details on fake e-commerce sites.

Practical questions also remain about who will bear the cost of issuing the tokens, how lost devices will be replaced, and whether banks can handle a potential surge in customer support requests.