One of the most effective ways to protect against cyber threats is through Multi-Factor Authentication (MFA). This multi-step login process creates an extra layer of defense, making it much harder for cyber attackers to gain access to your accounts and systems.
This guide explores how Multi-Factor Authentication works, its benefits, and when it should be used.
What is Multi-Factor Authentication (MFA)
Multi-Factor Authentication is a security method that requires users to confirm their identity using multiple ways or “factors” before gaining access to an account, application, or system. Single-factor authentication only requires a password to sign in, while MFA adds another level of security to reduce the chance of unauthorized access.
MFA makes it significantly harder for cyberattackers to access your information. That’s because even if they have your password, MFA asks for a second (and sometimes third) piece of evidence to log in, and blocks access without it.
When it comes to modern cybersecurity, passwords alone are often not enough to safeguard sensitive data. MFA is now considered a standard security measure for many online platforms such as email providers, banking services, and social media sites.
What are the Three Factors in MFA
Multi-Factor Authentication relies on at least two of the following factor types to verify user identity:
Something You Know: This factor includes information only the user should have knowledge of, like a password or PIN. It’s the most common form of authentication but also the easiest one to compromise.
Something You Have: This factor involves a physical object or device in the user’s possession, such as a smartphone, badge, or security key. The best known examples of this factor are a one-time code delivered via text message, or a code generated by an authenticator app on your phone.
Something You Are: This factor is based on a user’s unique physical identifier, such as a fingerprint, facial recognition, or voice recognition. For example, face recognition and fingerprint scan factors are commonly used to unlock smartphones. Biometric verification is considered highly secure because it’s difficult to replicate or steal.
Each additional factor creates another tier of security and further decreases the chance of breaches. Systems involving highly-sensitive information may require all three factors for authentication.
An Example of MFA
A common interaction with Multi-Factor Authentication happens when people log into a financial account online. Let’s say you want to log into your bank account:
Step 1: Enter Username and Password
Your online banking platform asks you to fill in your personal username and password. This is the first factor, aka “something you know.”
Step 2: Enter a One-Time Passcode
After submitting your password, the system asks you for a second factor. The bank sends a one-time passcode (OTP) to your phone via text message, email, or an authentication app like Google Authenticator. Retrieve the code and enter it into the banking portal. Your phone is the “something you have” factor in this case.
Step 3: You’re Verified!
If both factors are correct, authentication is successful and the system gives you access to your account. If either the password or the one-time passcode is incorrect, access is denied.
In some highly secure banking systems, the user may also be required to verify their identity through a “something you are” factor such as a fingerprint scan or facial recognition.
What Are the Benefits of Multi-Factor Authentication
Multi-Factor Authentication has many important benefits for companies and individuals:
Enhanced Security: MFA significantly reduces the risk of stolen data and identity theft by making it much harder for accounts and systems to be compromised.
Protection Against Cyberattacks: In cases of phishing or other cyberattacks where passwords are compromised, MFA makes it much harder for attackers to succeed.
Safe Remote Work Access: With the rise of remote and hybrid work, MFA helps secure remote access to company systems and data. MFA reduces the risk of breaches caused by employees logging in from unsecured home networks, public Wi-Fi or personal devices.
Increased User Confidence: MFA demonstrates to users that a company is committed to safeguarding their personal information. Users are more likely to feel secure knowing that their accounts are protected by advanced security measures.
Compliance with Security Regulations: Many industries require MFA to comply with regulations including in financial services, healthcare and government. Implementing MFA reduces the risk of penalties and can help organizations pass security compliance checks.
Lower Security Costs: Putting MFA in place is often more cost-effective than dealing with the consequences of a security breach. Fewer compromised accounts also means fewer customer support calls related to security issues, which can reduce IT help desk costs.
When Should MFA Be Used
While not every platform requires MFA, it’s best practice for any account containing sensitive information or valuable assets. Here are some common scenarios where MFA is particularly beneficial:
Protecting Financial Information
Banks and financial institutions are prime targets for cyberattacks because of the high value information they protect. Implementing MFA helps prevent unauthorized access to this data, even if account passwords are compromised.
Storing Sensitive Data
Businesses and organizations often store confidential information such as intellectual property, client details, and employee data on their networks. MFA is standard cybersecurity practice for protecting networks in the healthcare, government, insurance and legal industries.
Securing Personal Accounts
With personal data breaches on the rise, MFA is becoming more commonly required to access email accounts, social media accounts, online shopping platforms and more.
Remote Access to Company Networks
Employees accessing their company's internal network from home or while traveling can still do so securely using MFA, even when using public Wi-Fi or personal devices.
Preventing Phishing Attacks
Phishing attacks are the most common way cybercriminals steal passwords. MFA helps lower the risk of phishing by requiring an additional verification step that attackers can’t easily bypass.
We store more personal data online than ever before, and securing it is essential for avoiding lost time, money and privacy. Multi-Factor Authentication plays a key role in achieving that goal.