What is MFA? The #1 Way to Protect Your Digital Identity
Imagine you're settling into a cozy evening at home when an email notification pops up: “Suspicious login attempt blocked.” You realize someone just tried to access your account from halfway across the world. Thanks to Multi-Factor Authentication (MFA), they couldn't get past the second layer of security requiring access to your phone. This moment illustrates a stark reality—our personal and business accounts are under constant threat from cyber attackers. But what is MFA, and how necessary is it really for fending off these bad actors?
In this article, we’ll break down the basics of MFA, giving you insight into how effective it is at protecting private information, examples of cyber incidents that could have been prevented with MFA, and how to roll out MFA setup across your organization.
We’ll cover:
What is MFA?
Multi-Factor Authentication (MFA) acts as a gatekeeper for securing access to digital platforms, accounts, or resources by requiring not just one, but multiple proofs of identity. To gain entry, users must present a combination of two or more distinct verification factors, enhancing security by layering different types of credentials.
MFA has evolved significantly since its inception, rooted in the need to enhance security beyond the vulnerabilities of simple password systems. Originally developed for high-security environments, MFA has become increasingly mainstream as digital threats have grown more sophisticated and pervasive.
How MFA works
To gain access to accounts, systems, or apps, MFA requires users to enter a password in combination with one of the following verification methods:
1) Something you know
This traditional layer involves something only the user should know, such as a password or a personal identification number (PIN). It forms the first line of defence, familiar yet crucial for initial security checks.
2) Something you have
This factor moves beyond knowledge to physical possession. It might be a security token that generates time-sensitive codes, a mobile device equipped with an authentication app, or a smart card. This layer ensures that even if someone knows your password, they still need a device that only you possess.
3) Something you are
The most personal and hardest to replicate, this involves biometrics. Whether it’s a fingerprint, facial recognition, or a retina scan, these identifiers are unique to each individual and add a layer of security that’s extremely difficult to forge.
Together with a traditional password, these added layers form a robust security system that protects sensitive data from unauthorized access, ensuring users are who they claim to be by verifying multiple credentials which are hard to simultaneously compromise.
Just how effective is MFA? According to Microsoft, MFA can block over 99.9% of account compromise attacks. Here’s how MFA provides this level of protection:
Compounding barriers: With MFA, even if one factor (like a password) is compromised, the presence of an additional factor (like a mobile notification or fingerprint) is required to access the account.
Deterrence: The mere presence of MFA can deter potential attackers, who often opt for easier targets without MFA.
Why is MFA important?
The reliance on single-factor authentication, particularly passwords, is riddled with risk. According to a Verizon Data Breach Investigations Report, 80% of breaches related to hacking involve stolen or weak passwords. MFA addresses these vulnerabilities by adding additional layers of security, making unauthorized access exceedingly difficult.
“But why should I be worried about someone gaining access to my account?” Great question.
Here are just a few reasons:
Importance of MFA for personal accounts
Identity theft
With personal accounts often linked to sensitive information, the repercussions of identity theft can be financially and emotionally devastating. A surprising 61% of people have had their personal information breached, and 44% have had it occur multiple times. From banking information, to your personal address, and even your social insurance number—the data stored in your online accounts is best kept private.
Financial loss
In the first quarter of 2024 alone, Canadians lost around $123 million CAD to fraud, with many cases involving unauthorized account access. Protecting personal accounts with MFA can drastically reduce the likelihood of such losses.
Social media hijacking
More than one in five social media users say their accounts have been hacked at least once. Personal accounts on social platforms can be targets for hijacking, which can lead to reputational damage or misinformation being spread under your name.
Importance of MFA for corporate accounts
Data breaches
We’ve all heard the famous IBM statistic: data breaches cost businesses an average of $4.45 million USD in 2023. Many organizations don’t survive the devastating financial repercussions of a cyber incident, highlighting the need for robust security measures to protect corporate information.
Compliance violations
Depending on what region and industry your business operates in, your company could face stringent regulatory requirements for data security. In Canada, failure to comply with the Personal Information Protection and Electronic Documents Act (PIPEDA) can result in serious consequences. Under PIPEDA, organizations must protect personal information through adequate security measures, and non-compliance can lead to court-enforced penalties that can reach up to $100,000 per violation.
Reputational damage
When customers trust you to reliably protect the information they share with you, that breach of trust can have significant consequences. 46% of organizations that have experienced a data breach say they’ve suffered damage to their reputation and brand value as a result. Implementing MFA can prevent breaches and protect your company’s public image.
Addressing the inconvenience of MFA
One of the most common pushbacks we hear from organizations and employees when recommending MFA is that it’s cumbersome to add extra steps to access information. While MFA may initially seem inconvenient, the security benefits far outweigh those minor delays.
Here are strategies to integrate MFA smoothly to reduce friction:
Opt for convenient authentication methods: Modern smartphones enable quick and secure authentication methods, such as biometric scans, that are faster than typing passwords.
Use authenticator apps: These apps, such as the Microsoft Authenticator App, provide time-based, one-time passwords even when offline, offering a blend of convenience and security.
How to roll out MFA setup in your organization
Rolling out MFA in your organization is a strategic process that requires careful planning and communication. Here’s a structured approach to effectively implement MFA:
1) Assessment and planning
Start by assessing which data, systems, or areas in your organization need the most protection. Prioritize assets that involve sensitive information like financial data or personal employee details.
Choose an MFA solution that aligns with your organization's needs and integrates seamlessly with your existing IT infrastructure. Consider factors like usability, compatibility, and the level of security provided.
2) Policy development
Develop comprehensive MFA policies that outline who is required to use MFA, when, and in what contexts. Ensure the policies are aligned with existing security protocols and legal requirements.
Clearly define which roles in the organization will require MFA and what access each role will have. This helps in implementing MFA more effectively across different levels of the organization.
3) Implementation
Implement MFA in phases, starting with the most critical areas. This helps manage the logistical and technical challenges without overwhelming the IT department or the users.
Ensure that the MFA system integrates well with your existing IT infrastructure, such as user databases and email systems, for a smooth rollout.
4) Training and support
Conduct training sessions to educate employees about the importance of MFA and how to use it. Make sure they understand the risks of not using MFA and how it protects both them and the organization.
Establish a support system to assist employees with any issues that arise during and after the MFA implementation. This could include a dedicated helpdesk, online resources, and troubleshooting guides.
5) Monitoring and feedback
Use tools to monitor the usage and effectiveness of MFA in your organization. Check for any access anomalies or non-compliance and address them promptly. Regularly collect feedback from users about their experience with MFA. Use this information to improve the system and address any usability issues.
FAQs About MFA
What if I lose my authentication device?
Most systems provide alternatives for account recovery, such as backup codes or secondary authentication devices.
Can MFA be hacked?
While MFA significantly enhances security, no system is entirely foolproof. However, the complexity of bypassing MFA makes successful attacks highly unlikely.
Does MFA affect the performance of my devices or applications?
MFA should have minimal to no impact on the performance of your devices or applications. It operates primarily during the login process and does not interfere with device operations or application performance after access is granted.
What happens if I receive an MFA request I did not initiate?
Receiving an unsolicited MFA request can be a sign of a potential unauthorized access attempt. You should deny the request and immediately change your password. Additionally, review your security settings and consider notifying your service provider about the suspicious activity.
Can I use MFA on all my devices and accounts?
Many, but not all, services and devices support MFA. It's important to activate MFA wherever possible, especially on accounts that store sensitive personal or business information. Check the security settings of each service to see if they offer MFA.
Is SMS-based MFA secure?
While SMS-based MFA is more secure than no MFA at all, it is susceptible to certain types of attacks, such as SIM swapping. Whenever possible, opt for more secure methods such as app-based authenticators or hardware security keys.
Should everyone in my organization use MFA?
Yes, it is recommended that MFA be implemented for all users within an organization, not just for those with access to sensitive information. This creates a uniform security posture and minimizes potential entry points for attackers.
Other security best practices for end users
In addition to using MFA, individuals or employees can adopt several other cyber security best practices to enhance their online safety, including:
1) Use strong passwords
Create complex and unique passwords for different accounts. Use a combination of letters, numbers, and special characters, avoiding common words and sequences that are easy to guess.
2) Regular software updates
Keep all software—including operating systems and applications—diligently up to date. Software updates often include patches for security vulnerabilities that could be exploited by attackers.
3) Secure Wi-Fi connections
Always use a secure, encrypted Wi-Fi connection. Avoid using public Wi-Fi for sensitive transactions, or use a Virtual Private Network (VPN) if public Wi-Fi must be used.
4) Phishing awareness
Be vigilant about phishing attempts. Do not click on links or open attachments in emails from unknown or suspicious sources. Verify the authenticity of requests for sensitive information.
5) Backup important data
Regularly backup important data to a secure location. This can be a lifesaver in case of data loss due to malware, ransomware, or hardware failure.
6) Limit personal information online
Be cautious about how much personal information you share on social media and online platforms. The more information you share, the easier it is for cybercriminals to target you.
By incorporating these practices into your daily online interactions, you can significantly enhance your digital security and protect both yourself and your organization from cyber threats.
Ready to embrace MFA in your organization?
Embracing MFA is not merely about adding an extra layer of security—consider it an essential investment in your online privacy, data integrity, and cyber security. Rolling out MFA across an entire organization should be done strategically and with expertise. We’re here to help with that. When you’re ready, get in touch for guidance.