What is multifactor authentication (MFA)?

Today, the issue of cybersecurity is among the key ones for companies around the world. After all, simultaneously with the development of the digital environment and the increase in data volumes, more and more complex cybercrime schemes appear. Every year the number of information attacks is increasing, and attackers are increasingly trying to gain access to your corporate data.

“According to Fortune Business Inside, the global cyber defense market was worth $155.8 billion in 2022 and is expected to grow to $376.3 billion by 2029”.

The relevance of the topic is also aggravated by the local context, since with the start of a full-scale war, the number of cyber attacks on Ukrainian enterprises increased by 196%. As of today, the threat still exists, and the task of each company is to plan its own cybersecurity measures. It is appropriate to start this process with the implementation of top-priority and basic things, such as Multifactor Authentication. Read our article to find out what it is and how MFA will help protect your business.

What is Multifactor Authentication (MFA)?

Multifactor Authentication (MFA) is a login method that requires the user to verify their identity using multiple authentication factors.

For example, if you use a password to log into your account, then Multifactor Authentication can add another step to this process, such as a request for a verification code that will be sent to your mobile phone. Thus, MFA provides an additional barrier and layer of security that is incredibly difficult for attackers to bypass. MFA can block over 99,9 percent of account compromise attacks and is useful for many types of businesses.

Authentication factors

In the MFA concept, there are 3 main authentication factors, including:

1. Knowledge factor (what you know). This can be a password, a PIN code, or the answer to a security question. The factor is the most common and accessible, but its security can be compromised if the password becomes known to intruders.
2. Possession factor (what you possess). This can be a physical token, such as a USB key or a mobile phone with a special secure application installed. The factor is usually more secure because an attacker must have access to the physical device in order to gain access.
3. Inherence factor (what you are). This can be a biometric factor such as a fingerprint, face recognition, voice or smartrhythm. The factor is usually more secure since the biometric data cannot be stolen or replicated.

Each of these factors has its own advantages and disadvantages. Using more than one authentication factor provides a higher level of security because an attacker needs to go through multiple factors to gain access to a resource.

Depending on the specific MFA implementation, various combinations of authentication factors may be used. For example, the procedure may require you to enter a password and a one-time code that is generated by a special application on a mobile phone. Or the MFA could use a biometric such as a fingerprint and a physical token containing a secure access key.

Benefits of using MFA for business

“$4.35 million is the average cost of a data breach for global companies in 2022, and 80% of organizations experience more than one information security breach during their lifecycle (IBM 2022 report).”

Given the high risks of data breaches and cyberattacks in today’s world, the use of security methods such as multi-factor authentication (MFA) is becoming increasingly necessary for businesses. Here are a few benefits that having an MFA can bring to your company:

Increasing security level

MFA provides an additional layer of security for accounts and systems, reducing the risk of unauthorized access to user data.

Reducing the risk of data leakage and protection against fraud

Multi-factor authentication reduces the risk of data leakage because attackers will not be able to access a system or account unless they have access to an additional login factor.

Restoring account access

MFA can help restore access to an account if the username and password are lost or forgotten, since the user can use additional authentication factors, such as an SMS code or a fingerprint.

Improving interaction with customers

Implementing MFA will provide an additional layer of customer protection, giving them greater confidence in the security of their data and allowing businesses to demonstrate their commitment to protecting customer privacy.

Compliance with regulatory requirements

In some business sectors, the use of MFA is a regulatory requirement. For example, the European Union requires the use of MFA to ensure the security of users’ personal data in accordance with the General Data Protection Regulation (GDPR).

So, the use of multi-factor authentication (MFA) is a necessary element of a cybersecurity strategy for a business. This not only provides an additional layer of security, but also helps the business comply with regulatory requirements, protect customer privacy, and increase customer confidence in the business.

MFA cost and implementation

If you are considering implementing MFA for your business, there are some key points you should be aware of:

Firstly, you need to decide on the type of MFA for your business. As we have already found out above, there are different methods of MFA, in particular SMS codes, tokens, biometric data and others. The choice of method depends on the needs and security requirements.

Secondly, you need to find a reliable vendor. When choosing an implementation partner, you should pay attention to their experience and reputation in the field of data security. It is also important to find out what type of MFA it offers and whether it meets your requirements for safety and comfort of use.

Regarding the cost of MFA, it can vary and depends on many factors, such as the size of the company, the type of technology, the number of users, and more. There are different price models with their own characteristics. When looking for solutions for your company, it is wise to choose a vendor that is as transparent as possible on product and price issues.

MFA from Microsoft

Identity services, which include MFA, are part of Microsoft’s overall security concept called Zero Trust. Its basic principle is as follows: “Never trust, always verify”.

Microsoft’s Multifactor Authentication includes multiple authentication methods so you can choose the one that works best for your company. Among them are the FIDO2 security key, Microsoft Authenticator, OATH hardware tokens, Windows Hello, SMS and voice.

To get expert consultation on MFA from Microsoft or other Security Identity services, submit your request!

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Summing up:

1. The need for business to strengthen cybersecurity measures is growing every year.
2. Ukrainian companies are at high risk of information attacks, given the local context.
3. The introduction of MFA is the first but crucial step towards protecting your data and the data of your customers.
4. When integrating MFA into your business, we recommend choosing a reliable and transparent implementation partner.
5. If you need a personal consultation on MS MFA or other Microsoft Security tools, the SMART busines team can help you.

Microsoft, together with SMART business, continue to support the development of Ukrainian businesses and offer their customers preferential terms: an 80% discount on the cost of Microsoft Security solutions. The offer is valid until November 30, 2023 subject to Microsoft’s approval of the discount for a specific case.

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