The Central Bank of the UAE has directed banks and financial institutions across the country to strengthen anti-fraud protection measures and move beyond relying solely on one-time passwords (OTPs) as cyber threats continue to evolve.
According to local media reports, the regulator has begun establishing a new Anti-Fraud Operations Centre (CAFOC), a centralised platform designed to monitor fraudulent activities in real time and improve rapid response capabilities across the banking sector.
The new centre will combine operational and analytical tools to track fraud patterns, support faster escalation procedures and improve coordination between licensed financial institutions and relevant authorities.
The central bank said the UAE continued throughout 2025 to strengthen a national framework focused on fraud prevention, detection and risk mitigation to protect consumers and maintain confidence in the country’s financial system.
Authorities added that the CAFOC platform would also support data-driven supervision by gathering and analysing fraud indicators to help shape future regulatory policies and supervisory measures.
As part of broader reforms, the regulator introduced a structured framework for collecting fraud risk assessment data aimed at improving oversight of emerging fraud methods and cyber risks affecting financial institutions.
The central bank has also tightened consumer protection requirements by instructing banks to enhance authentication controls and reduce dependence on single-factor verification systems, particularly SMS-based OTPs, amid increasingly sophisticated digital fraud attempts.
Officials said ongoing coordination and supervision throughout 2025 had helped ensure consistent implementation of the updated security requirements across the UAE banking sector.
The measures come as the UAE’s financial industry undergoes rapid digital transformation, with increasing use of digital banking platforms and electronic payment services raising global concerns over cyber fraud and financial scams.
