As the threat of cybercrime gets stronger every year, every business needs to treat cybersecurity as a priority.
In this post we’ll look at a cornerstone of a good cybersecurity strategy: Two-factor authentication. We’ll explain what it is, how it works, and why it matters.
Want to discuss your cyber security risks? We have a team of experts on hand to help. Call us on 0208 290 9080 or email us at cyber@anthonyjones.com.
What is Two-Factor Authentication?
Two-factor authentication, also known as multi-factor authentication, involves using more than one independent factor to validate a user’s identity.
With single-factor authentication, users just have to provide a single piece of information to access a secure system – usually, a login and a password.
With two-factor or multi-factor authentication, users will not get access until they have provided at least two factors. For example, as well as a login and a password, a user might receive a unique time-based code they’ll need to enter.
Types of Authentication Factors
Broadly speaking, there are three types of authentication factors:
- Memorable information, such as passwords, PINs, or security verification questions.
- Physical devices, such as a smartphone or a security key.
- Biometric information, such as a fingerprint reading or a facial recognition system.
Why Two-Factor Authentication Matters For Businesses
Many forms of cyberattack rely upon stealing login credentials, or else tricking users into disclosing these credentials. Once cybercriminals have these credentials, they can access your business’s most sensitive and valuable data. This can result in:
- Data loss or theft
- Ransomware attacks
- Payroll redirection and fraudulent cash transfers
- Damages to your reputation
- Potential regulatory breaches, which could result in fines or legal action
Two-factor authentication makes it a lot harder for cybercriminals to gain entry to your systems. They might succeed in stealing or learning a user’s login and password. But they’ll be stopped in their tracks if they don’t have the necessary physical device or biometric information.
When and Where To Use Two-Factor Authentication
When reviewing your systems to be more secure, you should make sure you have two-factor authentication in place for the following:
- Logging into the business’s website or HR system
- Logging into CRMs, financial platforms, and other systems containing sensitive data
- Accessing emails
- Remote workers may also use two-factor authentication to access their company devices
When Two-Factor Authentication Isn’t Enough
Two-factor authentication is a cybersecurity essential. But as a security measure, it’s not totally reliable.
Cybercriminals never rest, and they’re always looking for vulnerabilities they can exploit. And when it comes to two-factor authentication, they can use various techniques to intercept codes, or to trick users and systems into authenticating their unlawful access.
Plus, cybercriminals are increasingly using AI to generate sophisticated phishing attacks which could coerce employees into sharing key information required to bypass two-factor authentication systems.
Relying on biometric information and hardware-backed crdentials as authentication factors can help to resist AI phishing attacks. But even then, for many insurers, two-factor authentication isn’t secure enough.
Some insurers specify that businesses should implement three-factor authentication as a part of their cyber insurance policies. So, employers may need to supply a password and a one-time security code and some biometric information before they can access your systems.
Further Cybersecurity Essentials For Your Business
In any case, you should treat multi-factor authentication as a single factor of a sophisticated cybersecurity system.
Here are some further cybersecurity essentials for your business:
- Staff training, to help them spot the signs of a phishing or baiting attack, so that they can respond accordingly.
- Keeping your systems up to date, so that you can depend on the latest security features. Read our guide to staying on top of updates.
- Use VPNs to enable remote employees to access your private networks via the public internet. But be sure to set clear policies and procedures regarding VPN use.
- Take extra steps to ensure that any remote workers or home workers do not create any vulnerabilities for cybercriminals to exploit. Read our full guide to IT security for home workers.
We Can Help You Protect Your Business Against Cybercrime
Joe Penny, Associate Director at Anthony Jones says:
“If you’re aware of the risk of cyberattacks, then you have a responsibility to cover your business against these risks.
“Two-factor authentication is an essential part of your business’s cybersecurity system. But it’s not quite the be-all-and-end-all many seem to think. Staff training, VPNs, dedicated breach response policies – it all matters. And you should also invest in specialist cyber insurance to help you recover from any incidents.
“In the event of a data breach, cyber insurance will cover your business’s liability as well as your ability to manage the impact on both your systems and finances.”
If you have any questions about business insurance, or if you want to ensure your business has adequate cyber insurance in place, we have a team of experts ready to help. Call us on 0208 290 9080 or email us at cyber@anthonyjones.com.
