What is Multi-Factor Authentication, and How Does It Work?

One of the most widely used authentication tools that organizations use is passwords. However, in a world plagued by cyberattacks, you need more than a strong password to secure your personal information from crooks.
Security experts have put great emphasis on the need for a second layer of protection to boost mobile security and for your web accounts, with 2FA or two-factor authentication, often known as multi-factor authentication (MFA). Many companies use authentication management tools to enforce and implement multi-factor authentication across corporate applications to protect business information from being stolen.
At this point, multi-factor authentication has become an increasingly crucial "must-have" security measure to safeguard against account hacks and data breaches. But what is MFA, and should your company use it? Read on to know the answer.
Multi-factor authentication (MFA) authentication is an account security tool that only legitimate users can access accounts and applications. Multi-factor authentication requires users to verify two or more authentication elements to access online accounts.
Businesses are increasingly using multi-factor authentication methods. Google, Microsoft, Facebook, and Apple use SMS to support multi-factor authentication and push notification features. Companies deploy Multi-factor authentication to ensure mobile security and IoT organizations such as Nest to secure internet of things devices.
A recent study states that by 2023, 60% of large organizations and 80% of small and medium-sized enterprises (SMEs) will incorporate multi-factor authentication tools and methods to secure their business accounts from data breaches and other cyber threats.
The purpose of multi-factor authentication is to create layered protection that makes it difficult for unauthorized persons to breach the system or access a target, such as location, network, or computing devices. If somehow one factor is hacked, that hacker still has more obstacles to overcome before reaching the target.
The MFA systems depend on the two-factor authentication method (2FA) back in the day. Now businesses heavily rely on authentication systems requiring two or more credentials to mitigate the possibility of cyberattacks and mobile security. Multi-factor identification is an integral part of the access control and authentication framework.
So how does multi-factor authentication work exactly?
Users must enter a username (or email associated with the account) and password when logging into the account. The next step is to confirm and verify their identity, usually by phone number, email address, or a security question. Another way to ensure users' identity is by receiving a one-time password (OTP) via SMS or authentication applications like Authy and Google authenticator.
Each additional factor in multi-factor authentication increases your system's security and boost mobile security. The use of multi-form of authentication methods can make hacking difficult for hackers.
There are three categories of multi-factor authentication methods:
Multi-factor authentication works by combining two or more verification factors from these categories.
Knowledge-based authentication factor generally includes a password, but it can also be a PIN (personal identification number) and an OTP (one-time-password).
Some organizations may also require you to answer personal security questions. Such as:
The possession authentication factor works several ways, but some standard methods include authentication via mobile app or pop-up notifications from your cellphone. Users must have something to log in, such as a token, SIM card or a badge, OTPs generated by smartphone apps, or sent via text and email.
Possession authentication factor methods use security tokens:
The hardware token is considered one of the safest multi-factor authentications, but it can be more expensive. Hard Security tokens are small hardware devices that store users' data and electronically verify their identity. The device can be a smart card or a built-in chip, such as a USB drive.
Many companies offer hardware tokens to their most influential consumers. Hardware token is the best option to protect banking and investment information.
Receiving code via email is one of the most common types of multi-factor authentication. Users receive the verification codes via email to authorize access.
The text tokens are similar to email codes, but the OTP is sent to the phone number associated with the account. Users receive code via smartphone to gain or allow access. After entering your username and password, and (OTP) one-time password is sent to your phone in the form of a pin or out-of-band calls.
An inherence authentication factor is usually checked by scanning your fingerprints on the smartphone. But it could also include any biological identifier of a person used for Biometric verification methods:
Adaptive authentication, also known as risk-based authentication, identifies additional factors related to the context and behavior when authenticating and often uses these factors to determine the risk levels connected with the login attempts. Here are the examples:
What is the location of the user when trying to access information?
Location-based multi-factor authentication typically checks users' IP addresses and sometimes their geographic location. This type of authentication blocks the user if their current location is different from the system a user is trying to access.
Businesses are now relying on cloud applications to take advantage of their significant capabilities, be more productive, and work efficiently with virtual teams. It became more crucial during the Covid-19 pandemic, as remote work became vital for business success. As business depends on these accounts, organizations need to secure them.
One of the significant pitfalls of logging in with traditional usernames and passwords is that the passwords are easy to crack, costing companies millions of dollars. The hacker can quickly access corporate systems in case of a stolen password. In this scenario, MFA or multi-factor authentication is essential to reduce the security risks.
Multi-factor authentication is an easy and effective way to secure accounts or any online asset from cybercriminals. Authentication and access management solutions are the easiest way for companies to implement MFA in all online accounts and configure multi-factor policies.
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