Bank Alert: New Requirements for Money Transfers

Banking institutions are updating security requirements for fund transfers to combat fraud, according to reporting from El Mostrador on July 24, 2026. These changes primarily target the authentication methods used to authorize transactions, moving away from legacy systems toward more dynamic digital verification.

The updates focus on the phase-out of coordinate cards—physical grids of numbers used to verify identity—in favor of biometric authentication and one-time passwords (OTPs) delivered via mobile applications. According to El Mostrador, these shifts are intended to close security gaps that allow unauthorized parties to intercept static credentials.

Transition from Coordinate Cards to Digital Authentication

For years, many banks relied on coordinate cards as a secondary layer of security. Users would provide specific numbers from a grid to authorize a transfer. However, El Mostrador reports that these requirements have changed because static grids are vulnerable to social engineering and phishing attacks.

Banks are now implementing Strong Customer Authentication (SCA) protocols. These requirements typically involve two or more of the following elements: something the user knows (a password), something the user has (a mobile device), or something the user is (biometric data like a fingerprint or facial recognition).

New Requirements for Transferring Money

Under the new guidelines detailed by El Mostrador, customers must now interact with their bank’s official app to sign off on transfers. This process often requires a digital token or a biometric scan to confirm the user’s identity in real-time.

The updated requirements include:

• Mandatory use of mobile banking apps for transaction authorization.
• Integration of biometric verification for high-value transfers.
• Replacement of static security codes with time-sensitive dynamic passwords.

These measures aim to ensure that the person initiating the transfer is the actual account holder, reducing the risk of “man-in-the-middle” attacks where a fraudster intercepts a static code to drain an account.

Impact on Consumer Banking Access

The shift to digital-first authentication creates a barrier for users who do not utilize smartphones or who rely on older banking methods. El Mostrador notes that the change in requirements means those still using coordinate cards may find their transfer requests blocked or delayed until they update their security settings.

Financial institutions are urging customers to register their devices and update their mobile applications to avoid service interruptions. This transition is part of a broader industry trend to align with international security standards and regulatory frameworks designed to minimize electronic payment fraud.