With cyberattacks on the rise, relying solely on passwords to protect sensitive information is no longer enough. As per Verizon’s 2023 Data Breach Investigations Report, 81% of data breaches are caused by weak or stolen passwords. This is where cybersecurity techniques like Multi-Factor Authentication (MFA) come in, requiring users to verify their identity with more than just a password.
In this blog, we’ll dive into the importance of MFA, how it works, and why adopting it is essential to securing your digital presence in an era of increasing cyber threats.
What is Multi-Factor Authentication (MFA)?
Multi-factor authentication (MFA) is a strong component of the IAM (identity and access management) policy, requiring more than one verification method to authorize the access of a user to a resource as the name suggests. The resource can range from an application, an online account, or a VPN.
How does MFA work?
A simple example to understand MFA is when a user logs into an online account, they are asked to enter a verification code sent on their mobile phone or email. The verification code is also called OTP (one-time password).
This entire setup is helpful because if credentials for an account are leaked or compromised through a data breach the secondary verification will ensure that login is not successful until the second step of authorization is also complete.
The second verification method in Multi-Factor Authentication (MFA) relies on one of these three types of factors:
- Something You Know: This could be a password or a PIN that only you know.
- Something You Have: This includes a physical item that you possess, like a smartphone, a hardware token, or a security key. For example, you might use an app on your phone to generate a code or plug a small device into your computer to verify your identity.
- Something You Are: This is biometric verification, such as using your fingerprint, facial recognition, or even an iris scan. It confirms your identity based on your unique physical traits.
Each factor adds a layer of security because even if someone learns your password, they will still need the other verification methods, like access to your smartphone or your fingerprint, to complete the login process.
Common Types of Online Fraud and How MFA Mitigates Them
Account Takeover
It is a cyberattack where a malicious actor gains unauthorized access to someone’s online account. Once inside, the attacker can perform various actions, such as stealing personal information, making unauthorized purchases, or using the account to further compromise other systems or users.
MFA provides an extra layer of protection where an attacker even after having access to user credentials cannot exploit it beyond that as there will be an additional verification step needed to authorize their identity that can only be completed by the actual account owner.
Phishing Attacks
A phishing attack is a cybercrime where an attacker impersonates a legitimate entity to trick individuals into revealing sensitive information, such as passwords, credit card numbers, or social security numbers. This can involve deceptive emails, messages, or fake websites and fooling the victim into believing they are interacting with a trusted source.
But with MFA phishing attacks can be stopped even if the attacker is able to access the login credentials. MFA provides a second layer of verification that can involve a verification code on email or phone number or biometric details that can only be provided by the actual user.
MITM (Man in the middle attacks)
An MITM is a type of cyberattack where malicious software or an attacker intercepts the communication between the user and an application. The malicious actor then gets unauthorized access to the information being shared between the two entities. But with MFA even after the credentials are leaked the second piece of information will still be needed.
Imagine you’re logging into your bank account from a coffee shop’s public Wi-Fi. While you’re typing in your username and password, an attacker sitting nearby intercepts the Wi-Fi network, allowing them to capture the information you send over it. Without you knowing, they now have your login details.
However, if your bank uses Multi-Factor Authentication (MFA), logging in requires a second step like a unique code sent to your phone. Even if the attacker has your username and password, they won’t be able to log in without that code, keeping your account secure.
Types of Multi-Factor Authentication Methods
Multi-factor authentication can be applied in various ways that include:
- SMS-Based Authentication: The user receives a text message in the form of an OTP that is required to be entered.
- Authenticator Apps (e.g., Google Authenticator, Authy): Some businesses also leverage authentication apps such as Google Authenticator, and Authy that provide an additional layer of security for logging into accounts by generating time-based, one-time passcodes (TOTPs) that change every 30 seconds.
- Biometric Authentication: The user’s biometric data such as fingerprint or facial recognition is required to prove their identity. Details like these are specific to the user and can’t be bypassed by a hacker easily even if they have got hold of the user’s password and other credentials.
- Hardware Tokens: They are physical devices used for authentication. Unlike authenticator apps, hardware tokens generate or store unique authentication codes independently, making them less susceptible to software-based hacking attempts.
A real-world example of hardware tokens can be seen in Google’s use of security keys for employee accounts. In 2017, Google required all employees to use physical U2F (Universal 2nd Factor) security keys, such as YubiKeys, for logging into work accounts as an added layer of protection against phishing.
Benefits of Implementing MFA
- Enhanced Security: MFA enhances the security of an application or a system since it adds multi-layers of defense that are hard for unauthorized users to breach.
- Reduced Fraud and Phishing Incidents: As MFA involves multiple verification methods the chances of fraud incidents are reduced. Methods like biometric and OTP verification reduce the overall risk of data breaches.
- Customer Trust and Confidence: In the age of increasing scams and cyberattacks, MFA helps build trust amongst customers and employees alike. The methods ensure the customer and employees that their details are protected.
- Ease of Use: MFA offers a versatile solution, and is easy to integrate in different applications and systems without affecting user experience. Also, as cybersecurity threats continue to evolve MFA offers flexibility where it can be tweaked as per the new requirements.
Challenges of MFA Adoption
- User Experience Concerns: Although MFA is implemented to protect the user data the additional time and steps involved frustrate some users. So, when implementing an MFA solution it is important to provide multiple authentication options.
- Compatibility issues: Some legacy systems or software might not be compatible with MFA integration. Also, some authentication methods may require a specific type of hardware requirements like a USB port that might not apply to BYOD environments.
- Cost and complexity: Implementing MFA solutions involves setting up costs such as buying software licenses, physical hardware tokens, and technical expertise for implementation.
How to choose the right MFA solution for your system?
- Evaluate Security Needs: Before you choose any MFA solution it is essential to assess the requirements of your system by considering the sensitivity of the data and systems being protected. For instance, for high-risk applications opt for more secure methods like biometric authentication. If your system is prone to phishing attacks, then choose an MFA solution that offers strong phishing protection such as number matching in push notifications.
- Consider user convenience: MFA methods should always be implemented after considering the users. It should offer ease of use and not make the user journey difficult. For example, you can always provide them with a choice of what authentication method they prefer, an email or text. Secondly, opting for adaptive authentication is also helpful where authentication is only needed in certain scenarios such as login from a different location or a new device.
- Compatibility: Ensure that your MFA solution is compatible with your existing system. Secondly, if your users will use authentication on personal devices then ensure that it is compatible with all the major OS such as Android, iOS, and Windows and there are no other issues using it. If there is any complexity involved the user should be provided with detailed training material to get started.
Best practices for setting up MFA
Here are the best practices that you can incorporate while setting up MFA as described by AWS.
- Set Up User Roles: Organize users into roles to control access more precisely. For example, give admin users more permissions than regular users.
- Enforce Strong Password Rules: Even with multi-factor authentication, strong passwords are essential. Require passwords that include a mix of uppercase and lowercase letters, numbers, and special characters.
- Regularly Update Security Credentials: Encourage users to change their passwords regularly. You can automate this by blocking access until they update their password.
Conclusion
Cybercriminals are becoming more sophisticated each passing day calling for solutions that can help combat those threats. MFA is a strong cybersecurity solution that businesses should implement above username and password verification. The multi-layer security and defense mechanism helps businesses keep their data secure. It ensures that even if one factor is compromised, the attacker cannot gain access without the other factors.
As digital environments become more interconnected, and as new forms of cyber threats emerge, MFA will remain an essential strategy for future-proofing digital security.
If fraud prevention is a priority, start a free trial with Sensfrx to enhance your security.
