What is MFA — Multi-Factor Authentication?

What is Multi-Factor Authentication (MFA)?

Our lives are already saturated with various gadgets we use to communicate with the outside world, transmit information, and receive it. We wake up and fall asleep with a smartphone in hand, we have breakfast with a laptop, and go to bed with it after watching yet another movie. Life has moved into the digital world. 

You check your email, log into social media accounts, and enter your credit card number to pay for online purchases. Each time we exchange sensitive data, such as passwords, banking information, or home addresses online, finding ways to enhance cybersecurity and protect our information becomes increasingly important.

Each of our digital accounts is at risk of being hacked, so adding an extra layer of protection with Multi-Factor Authentication (MFA) is crucial.

Multi-Factor Authentication (MFA) is an authentication (identification) method that requires the user to provide two or more pieces of identity evidence to gain access and log into their account. Only after entering all the necessary information will you be granted access to your account. This could include a phone number, an email address, or an answer to a (known only to you) security question.

Although MFA can combine any number of authentication factors, the most common form is Two-Factor Authentication (2FA). MFA may also be required if 2FA fails or if suspicious activity is detected. 

This is typical for 2FA systems capable of switching to MFA. It may also be necessary for additional security when accessing more sensitive files or confidential data, such as medical or financial records. For example, regular 2FA might grant access to social media, while MFA is used to access medical or financial data.

Additional security layers in the login process provide confidence that your personal information remains protected and safe from unauthorized access.

How Does Multi-Factor Authentication Work?

It’s important to note that there are two main types of multi-factor authentication.

• MFA application: An authentication process activated when a user tries to access one or more applications.
• MFA device: An authentication process that immediately activates MFA at the system login point.

Although they are separate processes, MFA generally operates the same way for both types. When a user attempts to access something (phone, laptop, server), they encounter MFA and must enter two or more authentication factors. If the Identity Provider (IdP) verifies these factors, access is granted.

One of the most common authentication factors is your phone number. Typically, with MFA, you enter your username and password upon login, followed by a unique code sent via text message to your mobile phone. 

This confirms that you know the username and password and possess a smartphone registered to receive such codes.

What Are Authentication Factors?

An authentication factor is a category of credentials used for identification during verification. When these factors are used in MFA, each additional factor increases the confidence that the person attempting to access the account is indeed who they claim to be.

Your credentials fall into three categories:

Knowledge: something only the user knows, such as their password or unique PIN.

Possession: something only the user has, such as a smartphone, hardware token, or USB drive.

Inherence: something unique to the user, such as a fingerprint, voice, or retina scan.

For example, when logging into a banking app on a smartphone, the app sends a text to the user to enter a code before they can access their account. This MFA method falls under the "something you know" category, as it requires a PIN that the user must enter to fully access their online bank account.

In this case, the Discover Card app takes it one step further by asking you for your fingerprint when you sign in.

Or consider the situation of refueling at a gas station. For example, after you insert your bank card for payment, the system might request specific information that only you know—such as a zip code or your mother’s maiden name. This method, however, is outdated.

Adaptive Authentication

More modern authentication factors take the context of login behavior into account.

For example, the system may recognize if a hacker is logging in from an unusual location thousands of miles away or if a new device is attempting to access your account. The system also considers the time of the login attempt and the type of network you're connected to. If any of these factors appeal unusual, adaptive authentication is triggered. This identification method is highly popular now as it allows the system to create a unique user profile based on common behavior patterns.

Adaptive authentication uses artificial intelligence and machine learning to detect any unusual behavior in your profile. Any atypical actions (such as logging in from a new location or at an unusual time of day) will prompt the system to activate additional checks, like requiring a human verification code or email codes. Over time, adaptive authentication learns all possible behavior patterns of the user and eventually stops requiring identity verification if the user frequently visits new locations or increasingly uses a new device. In other words, the system learns by itself.

Types of Multi-Factor Authentication

Typically, when you shop online you use 2-3 types of MFA to access your accounts, but in reality there are many more. Let’s take a look at them.

Email Codes

These codes are sent to the user who requests access via email. Receiving a code through email is one of the most common types of MFA and can be a good option if your phone is lost, stolen, or simply out of reach.

Text Tokens

A text token is similar to an email code, but it uses a different means of communication. Receiving text tokens is an easy option and can be used by practically anyone. 

After entering your username and password, a one-time password (OTP) in the form of a PIN code is sent to your phone. This code acts as the second factor of authentication and is entered on the next screen.

Biometric Verification

Biometric verification can vary, from fingerprint identification to facial recognition. Users with smart devices or computers can use this technology to further strengthen their online security. Biometric verification is usually less cumbersome than a one-time password and can make MFA faster and easier.

Hardware Tokens (Devices)

Whereas the previous three types of MFA were virtual, a hardware token is a physical object. This method of identification is considered one of the most secure MFA methods, although it is also more expensive. 

Many companies offer hardware tokens to their most valued users and customers to help retain them. A hardware token is usually the best option for protecting sensitive information such as banking details, insurance, or financial and investment data. 

Users insert the token into a device or computer to access information, such as using a USB “key” for access on a mobile device. 

The only drawback is that you must keep track of the token's location. If you lose it or leave it at home, you won’t be able to access your accounts, making you highly dependent on this physical object.

Security Questions (Secret Questions)

Most of us have encountered security questions at some point. This is common in banks and financial institutions as a way to verify identity. In this case, you must create (or choose from a list of options) a question, the answer to which is recorded in your personal record. 

Previously, we published an article on the top cybersecurity books to read, which can help not only regular users but also businesses learn cybersecurity basics.

Examples of Security Questions:

– What was the name of your first pet?
– On which street did you grow up (or were born)?
– What is your mother’s maiden name?
– What was your childhood nickname?

When logging into your account, you enter your username and password, then you are prompted to answer a security question. More advanced versions of security questions (known as dynamic questions) are created in real time based on historical records, such as recent transactions or credit history.

It’s important to understand that MFA is a fairly secure method, but if a hacker targets you specifically, they might analyze all your social media and other available content about you, trying to gather data that could relate to the questions above.

Other Examples of Multi-Factor Authentication:

– Retina or iris scanning
– One-time codes via smartphone apps
– Behavioral analysis
– USB devices, badges, other physical tokens

The more types of MFA you implement, the more secure your sensitive data becomes. Even if a hacker has access to two out of three types, they still won’t be able to proceed, and your MFA process will be successful.

Why Use Multi-Factor Authentication?

While some may see it as a minor inconvenience or believe it takes too much time to set up, it’s worth considering the added security in the long term. In 2016, approximately one billion accounts were hacked worldwide. 

The ultimate goal of MFA is to create a line of defense between your information and hackers. The very sites you connect to make unauthorized access much more difficult. Even if someone knows your password, they cannot replicate the second authentication factor (your fingerprint, text code, or answer to a security question).

In the past, MFA systems used only two-factor authentication, but as cyberattacks have increased, users have started implementing two or more factors forlayers of security. Although we can’t prevent all online crimes, adopting simple measures like 2FA or MFA can significantly reduce the likelihood of a breach. 

If MFA is available, you should use it, especially when it comes to your most sensitive information, such as financial accounts, medical records, and primary email addresses.

MFA Security

How secure is Multi-Factor Authentication? 

Security ultimately depends on your diligence. If you’re willing to take the time to enter multiple authentication factors to access your account, you’ll spend only a few minutes, but you’ll be much better protected in the long run. 

Additionally, strong passwords (especially a variety of strong passwords) are your best choice when it comes to account security. If you want to improve your MFA process, you can take one of the following actions:

– Ask your bank to implement Multi-Factor Authentication.
– Avoid verifying your identity through social checks whenever possible, as this is the most vulnerable to hacking. If possible, avoid signing into sites through social media accounts.
– Find out which MFA methods you are most comfortable with.

Achieving 100% security is impossible, but if you’re diligent in ensuring your online security, even the most skilled hackers will find it challenging to steal your personal information.

Advantages of Multi-Factor Authentication

Today, people expect multi-factor authentication to be part of any account setup. It is now implemented as a basic security element.

– MFA provides a higher level of protection than a simple username and password.
– Users and clients may feel more valued by companies that use MFA.
– MFA can be integrated with Single Sign-On (SSO) software, offering users a simpler and more secure login process.

Storing sensitive information online or even in the cloud is becoming increasingly risky. The growing use of MFA makes life easier for both companies and individuals while significantly enhancing overall protection against hacking attempts.

If you’re ready to find the perfect solution to secure your information, check out the top MFA tools on G2.

Two Is Better Than One (and Three Is Even Better)

Next time you sign up for an account, make sure you have a few extra minutes to set up MFA and protect all your sensitive data.