What is multi-factor authentication?
Multi-factor authentication (MFA) is a security process that requires users to provide two or more independent authentication factors to verify their identity. These factors typically fall into three categories: something you know, such as (e.g., a password), something you have, such as(e.g., a mobile device), and something you are, such as a customer’s (e.g., a fingerprint). By combining these factors, MFA significantly reduces the risk of unauthorized access.
Multi-factor authentication (MFA) is a security process that requires users to provide two or more independent authentication factors to verify their identity. These factors typically fall into three categories: something you know, such as (e.g., a password), something you have, such as(e.g., a mobile device), and something you are, such as a customer’s (e.g., a fingerprint). By combining these factors, MFA significantly reduces the risk of unauthorized access.
MFA vs single-factor and two-factor authentication
Single-factor authentication relies on just one method of verification — usually a password — which is vulnerable to phishing and credential theft. Two-factor authentication (2FA) adds a second layer, such as an one-time passcode (OTP), but can still be compromised if a fraudster intercepts — or tricks a customer into sharing — both factors.
MFA goes beyond 2FA by incorporating multiple, diverse factors. Advanced MFA solutions may include behavioral biometrics, device intelligence, and contextual risk signals to adapt authentication in real time.
How does MFA offer stronger fraud prevention for financial institutions?
MFA helps financial institutions protect customer accounts and sensitive data by creating multiple barriers to fraud. The more layers, the less likely a fraudster’s attack will be successful. The added security also supports regulatory compliance and builds customer trust by offering a more secure digital experience.
Example
A customer logs in to their banking app using a password. Since passwords are easily phisable, the authentication solution may prompt the customer for biometric verification using facial recognition, ensuring that only the legitimate customer can access the account.
Further reading:
Keywords:
Risk-based authentication | Passwordless authentication | Multi-factor authentication (MFA)
Single-factor authentication relies on just one method of verification — usually a password — which is vulnerable to phishing and credential theft. Two-factor authentication (2FA) adds a second layer, such as an one-time passcode (OTP), but can still be compromised if a fraudster intercepts — or tricks a customer into sharing — both factors.
MFA goes beyond 2FA by incorporating multiple, diverse factors. Advanced MFA solutions may include behavioral biometrics, device intelligence, and contextual risk signals to adapt authentication in real time.
How does MFA offer stronger fraud prevention for financial institutions?
MFA helps financial institutions protect customer accounts and sensitive data by creating multiple barriers to fraud. The more layers, the less likely a fraudster’s attack will be successful. The added security also supports regulatory compliance and builds customer trust by offering a more secure digital experience.
Example
A customer logs in to their banking app using a password. Since passwords are easily phisable, the authentication solution may prompt the customer for biometric verification using facial recognition, ensuring that only the legitimate customer can access the account.
Further reading:
- Blog: MFA: Your best defense against social engineering attacks, read the blog.
- Article: Entersekt awarded new patent for frictionless multi-factor authentication (MFA).
Keywords:
Risk-based authentication | Passwordless authentication | Multi-factor authentication (MFA)
