2-factor authentication has emerged as a quick and easy way to make transactions more secure. Increasing password bypassing and phishing tricks have made integrating 2FA a must-have for any business, especially Financial Services. A report found that they are the biggest targets of data theft as they are 300 times more likely to suffer cyber-attacks. Unsurprisingly, investment in cyber security has increased. For instance, in 2022, about $71.68 billion was spent on cybersecurity ; this number is expected to exceed $76 billion in 2023.
This investment has led to the development of several 2FA methods to counter the threat of data breaches. This article closely examines these 2FA methods, highlighting their strengths and weaknesses.
If you provide services for BFSI customers , you must select the best method. 2FA methods are broadly classified into three categories: something you know, something you have, and something you are. Let’s go into more detail.
This type of 2-factor authentication method involves what you can memorize and recall easily. Examples of this include PINs and Passwords and security questions. Unfortunately, this is the weakest type of 2FA method. A user can forget his password, and hackers can hijack it. The user’s password may also be too weak and susceptible to brute-force attacks. A brute force attack involves guessing the user’s password using different combinations until it is cracked.
According to Verizon’s Data Breach Investigation Report , weak passwords are the leading cause of data breaches worldwide, making up 80%. The common passwords that are easily compromised include “qwerty” “password,” “abc123,” etc. Security experts advised that alphanumeric passwords are more difficult to crack by cyber criminals.
Pros
Cons
2FA methods here means physical devices such as a token to generate 2-step verification codes. Other examples of something you have a 2FA method are USB drives, Smart Keys, and Smartphones, deemed more convenient by 73% of users. These devices add another layer of security by generating random Time-Based Passwords, which a user inputs to confirm his identity. The codes are sent to the user’s phone number for confirmation.
Pros
Cons
This method uses an inherent part of a person to verify their account. Examples are biometric verification, retina scanning, voice recognition, or face recognition. Usually, this method is the strongest because it cannot be duplicated, and only the individual can confirm the transaction. The FBI recommends Biometrics as part of Multifactor Authentication for businesses to secure user data.
Pros
Cons
A combination of these methods ensures better security and reduces the incidence of hacking of user details. Knowing how each works is the first step to choosing the most suitable option for your business.
You have seen the types of 2-factor authentication methods to choose from with their pros and cons, so how do you start the implementation process? Here is a list of what to do.
Improving your security mechanisms is a smart move to attract new customers and save your business from fraudulent attacks. As you have seen, there are various 2FA methods you can use. You must factor in the merits and demerits of each option before making a final decision.
BSG is the partner you need to design an effective 2FA system for your business. We also help you with SMS marketing for your Fintech and other businesses.
Contact us today; we are just a click away.
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