Benefits of Multi-Factor Authentication and Two- Factor Authentication

Man holding phone. 3D authentication code overlaid on top of the image

Ten or more years ago, it was enough to have password-protected logins. Today, weak and stolen passwords are easy entry points for cybercriminals to gain access to user and employee accounts. Once entry is gained, hackers will harvest and exploit data as well as hijack network resources. It is no surprise then that having robust, layered system security is quickly becoming mandated state by state and country by country. 

The globe, commerce and industry becomes more digitized daily. Along with this growth, the threat of cybercrime also increases, possibly exponentially. Therefore, it has become essential to build network and data protection in the form of additional, highly effective cybersecurity. Also, more and more states as well as the Federal Government are mandating that businesses implement multi-factor authentication (MFA) methods as a layered or defensive approach to securing their data and applications.

There are different types of multi-factor authentication, particularly the considerable benefits of two-factor authentication solutions. Simply put, to gain access, MFA requires users to present a combination of two or more credentials. Options include a password plus a text message or email to verify identity for logins. The gains for businesses are not just to be compliant, but to protect access to personal data such as bank accounts, make online shopping more secure, as well as to protect an enterprise against significant data breaches. 

Did you know? If hackers can breach a single password, they can quickly inundate an entire pipeline. The great news, however, is that implementing multi-factor authentication methods will prevent 99.9% of cyberattacks. Industries such as healthcare have already received HIPAA compliance mandates, and eCommerce must institute Payment Card Industry Data Security Standard (PCI-DSS) regulations to prevent unauthorized users from accessing their payment processing systems. For financial institutions including, including mortgage lenders, payday lenders, finance companies, mortgage brokers, account servicers, check cashers, wire transferors, collection agencies, credit counselors and other financial advisors, tax preparation firms, non-federally insured credit unions, investment advisors and insurers, the FTC mandates that these industries must be MFA compliant by implementing multi-factor authentication methods by June 9, 2023. Here is a recap of the types of multi-factor authentication, including the benefits of two-factor authentication:

  • Reduced Reliance on Passwords: A recent survey states that over 15 billion stolen credentials are in circulation on the dark web. According to Verizon, 61% of data breaches occurred during ‘brute force attacks’ on accounts that were only password protected. Ideally, for the greatest protection, two-factor authentication should eliminate the use of passwords altogether.
  • System Security: For optimal protection, Multi-factor authentication (MFA) is an access security solution used to verify a user’s identity at login. It adds two or more identity-checking steps to user logins by use of secure authentication tools. Adding MFA keeps your data secure. 
  • Regulatory and Standards Compliance: In his Executive Order on Improving the Nation’s Cybersecurity, President Biden has issued a call to action to update cybersecurity measures nationwide. State by state is adopting measures to remove vulnerable access practices for numerous industries including finance, insurance, healthcare, eCommerce and others. 

We invite you to contact Converged Technology Group today to learn more about how our cybersecurity solutions and multi-factor authentication service will enable your firm to meet compliance deadlines and ensure greater data security for your clients and business.

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