Cyberattacks have long been part of everyday life – and affect not only large corporations, but all kinds of institutions. Traditional protective measures are often no longer sufficient. Especially when it comes to identity and access management, it is clear that anyone who has access to sensitive systems or data should protect them properly. However, this is precisely where things still get stuck too often in practice – and this can quickly become expensive. The solution is multi-factor authentication. A second security level is introduced to make hacker attacks more difficult.

The following blog post takes a closer look at what is behind multi-factor authentication, what it means for companies and how it can be used for protection.

What is multi-factor authentication?

Multi-factor authentication protects accounts, private and business, through a combination of several security factors.

These factors can be divided into three categories:

• Knowledge-based factors – the classic password or a PIN, i.e. something you know.
• Possession-based factors – for example, a smartphone or a security token, i.e. something you own.
• Inherence-based factors – biometric features such as fingerprints, facial recognition or voice recognition, i.e. something you are.

With single-factor authentication, a single one of these features is sufficient – usually a password. But we all know that passwords alone are no longer enough. Too many of them are weak, used multiple times or, in the worst case, have long since been leaked somewhere on the internet.

MFA therefore combines at least two of these factors and thus offers significantly better protection – and that is exactly what we need now more than ever.

Why MFA is indispensable today:

Passwords alone are no longer the protective shield they once were. Easy-to-guess passwords or passwords that are used multiple times or stolen in a data breach pose a threat.

According to the Verizon Data Breach Investigations Report, around 80 % of all successful hacker attacks are due to stolen or weak login credentials (Guide & Stephenson, n.d.). This means that in four out of five cases, such incidents could have been prevented by better access security – for example, through MFA.

One example is the Twitter hack of 2020, in which attackers gained access to internal tools via social engineering and posted tweets from prominent accounts such as Elon Musk or Barack Obama. MFA would have put an additional hurdle in the way of the attackers – probably an insurmountable one.

The fact is: MFA is no longer a nice-to-have, but a must. It is a simple but enormously effective measure to make your own digital life – and that of your organization – noticeably more secure. Anyone still relying solely on passwords today is taking unnecessary risks.

Advantages of multi-factor authentication

So why all this effort with multiple factors? Quite simply because MFA massively raises the security level – with comparatively little effort. This has several advantages:

• The combination of several verification levels makes it much more difficult for attackers to gain access to an account, as they need both the password and a second factor, such as biometric data. As a result, hacking attempts such as phishing emails, in which countless password combinations are automatically tried out, lose most of their effectiveness.
• Another plus point is that this form of authentication meets current security requirements – from the GDPR to ISO standards or specifications from the financial or healthcare sectors.
• And MFA also makes a difference in terms of trust. Customers, partners and employees notice whether IT security is just lip service – or is really practiced. Anyone who shows that sensitive data is seriously protected strengthens their own credibility and reputation.

In short: MFA not only protects accounts, but also relationships – both digital and human.

Best practices for the implementation of multi-factor authentication

For multi-factor authentication to really work, companies need a well thought-out strategy that can be set up in the following steps:

• First step: Selecting the right MFA methods. Not every company needs the same solution. For some, a combination of password and authenticator app is sufficient, while others rely on hardware tokens or biometric methods. It is important that the methods fit the working reality and security requirements – and at the same time do not overburden users.
• From a technical perspective, MFA must also be seamlessly integrated into the existing IT landscape – in email systems, cloud services, VPN access or sensitive business applications. The simpler and more stable the solution is, the better it will be accepted.
• At least as important: the people. Training, clear communication and practical examples help to create acceptance. If employees understand why MFA is important, they don’t just use it – they actively support it.
• And finally: MFA is not a one-off measure. Technologies continue to evolve – as do the methods of attack.

Challenges of multi-factor authentication:

As useful as MFA is, its introduction rarely runs completely smoothly. The issue of user acceptance in particular often causes resistance: “Another additional step?” or “I forgot my cell phone!” are classics. One thing helps here above all: communication. If it is clear why MFA is being used and how it protects the security of each individual, the willingness to use it also increases. Simple, intuitive procedures such as push notifications instead of complicated codes make it easier to get started.

Technically, it becomes more difficult when MFA is to be integrated into older, so-called legacy systems. These were usually not developed with modern security standards in mind. Tailor-made solutions are needed here – for example through upstream authentication gateways or middleware that makes MFA retrofittable.

And finally, it’s also about user-friendliness: MFA should protect, but not be annoying. Single sign-on (SSO), adaptive authentication or the option of storing trusted devices can significantly improve the user experience. This keeps security high – and frustration low.

Future prospects: Passwordless authentication

If there were no more passwords in the future, there would also be no attack surface for phishing. This is exactly where we are heading with passwordless authentication. Instead of typing in strings of characters, we use biometric features (e.g. fingerprint, face) or physical security keys such as YubiKeys.

The big advantage: these methods are not only more convenient, but also much more secure. There is nothing that can be stolen or guessed – because you authenticate yourself with what you are or have.

Many tech companies are already actively driving this change, and standards such as FIDO2 are paving the way for wider use. Interest is also growing in companies, because password less procedures ideally combine security and user-friendliness. One thing is clear: the future is not only multi-factor, but increasingly password-free. And that’s a good thing.

Conclusion: Do companies need multi-factor authentication?

In summary, it can be said that multi-factor authentication is no longer an option for companies. It is now part of standard security regulations to protect sensitive data in the digitalized world. Those who use multi-factor authentication therefore not only improve IT security, but also meet regulatory requirements. Protecting sensitive data also increases trust, both among customers and employees.

A clear strategy is needed to embrace this change and implement it effectively. Companies should not see it as a hurdle, but as an investment – in security, credibility and the future. After all, those who invest in digital resilience today will not be so easily thrown off track tomorrow.