Uzbeks Overseas Struggle with Restrictive Online Banking Policies
Uzbeks abroad face online banking hardships due to restrictive identity verification requiring presence in Uzbekistan, stirring demand for adaptive solutions.
A Growing Concern Amongst Uzbeks Abroad
The digital age has bridged distances, yet for Uzbeks living abroad, a stark problem has emerged: re-accessing their banking services is becoming a hurdle. According to Kursiv Media Узбекистан, Uzbeks are finding themselves locked out of banking apps, due to identity verification protocols that demand their physical presence in Uzbekistan. It’s a conundrum that is aggravated by the exclusive reliance on local phone numbers for transaction-related SMS codes, leaving emails unexplored as viable alternatives.
A Security Initiative Against Rising Fraud
The Central Bank of Uzbekistan (CBU) has implemented these measures in response to escalating payment card fraud cases noted in 2024. The policy mandates that all initial logins or registrations from new devices be conducted within Uzbekistan’s borders, a move aimed at curbing fraudulent activities originating abroad. Although designed to reinforce security, this initiative inadvertently complicates financial access for genuine users abroad.
Solutions on the Horizon
Efforts are underway to strike a balance between security and ease of access. Deputy Head of the Central Bank’s Cybersecurity Center, Davron Abdullayev, highlighted the construction of 24⁄7 support centers and the provision of video-based identity verification as workable solutions. Yet, as noted by experts, the effectiveness of such solutions remains largely untested across different banks.
The Promise of Modern Authentication Systems
Experts argue that more adaptable and inclusive techniques are essential. Suggestions include adaptive authentication systems that monitor risks in real time and deploy solutions such as biometric verification or push-signatures to preserve security without alienating users. Kirill Levkin, a project manager at MD Audit, Softline Group, believes that multifactor authentication strategies overcome the rigid geoblocking currently in place and offer a way forward without sacrificing user accessibility.
Addressing the SMS Conundrum
The exclusive use of SMS for authentication adds to the woes of travelers who often face disruptions in message delivery due to local telecom issues. Economist Botir Kobilov voices the need for alternative modes such as email and push notifications, which can significantly ease the process for international users.
A Call for Adaptive Cybersecurity
The current scenario serves as a reminder of how well-intentioned security measures can lead to unintended consequences. As the Central Bank plans to collaborate with global consultancy KPMG, the anticipation is for evolved anti-fraud systems that accommodate the nuanced needs of a global Uzbek diaspora. Such systems will ideally combine robust security with user-friendly interfaces, ensuring that access to one’s financial resources isn’t hampered by geographical boundaries.
As the evolution of banking security unfolds, the pursuit of harmony between protection and accessibility remains paramount, shaping the future of digital banking for Uzbeks worldwide.
