Uzbeks abroad and the problem of online payments

In recent times, Uzbeks living abroad have been facing serious problems when using banking applications. In cases of changing phones or reinstalling the app, users are required to verify their identity again, but this process can only be completed within the territory of Uzbekistan. Furthermore, banks send verification codes only via phone and do not provide the option of sending them by email. This creates additional difficulties for Uzbeks abroad. According to the Central Bank, these restrictions have been introduced to enhance cybersecurity. Due to the increase in fraud cases involving bank cards in recent years, starting from September 2024, the first login to banking applications or re-registration on a new device is mandated to take place only within the territory of Uzbekistan. However, users who registered previously can continue to use banking applications while abroad. According to Davron Abdulloyev, Deputy Head of the Central Bank's Cybersecurity Center, this measure was necessary to prevent fraud incidents. At the same time, banks have set up 24-hour call centers to assist clients. In special cases, customers will have the opportunity to verify their identity with bank staff via videoconference. However, users abroad are complaining that SMS codes are sent only to Uzbekistan phone numbers and that there is no email verification option. Economist Botir Qobilov criticized this issue in his post on Telegram and suggested abandoning SMS verification in favor of email or push notifications. Experts believe that the strict geographic restrictions applied to banking services in Uzbekistan are causing inconvenience for users. Modern technologies can ensure security while maintaining user convenience. For example, technologies such as adaptive authentication, video-based identity verification, and the use of biometrics could be effective solutions. The Central Bank, in order to study international experience, has launched large-scale analysis in cooperation with KPMG. They will develop recommendations to improve banking infrastructure and cybersecurity systems. This process is expected to be completed in 2025. Read “Zamin” on Telegram!