How does Multi-Factor Authentication help in securing against data breaches?

Privacy and security are the two major concerns of the modern tech era. With rapidly growing data on the globe, it becomes essential to ensure that its security is maintained at all expenditures. Even after implementing advanced security systems and data protection methods, data breaches remain a common problem worldwide. Thus, advanced technology is needed to put a stop to these unwanted information compromises.

Multi-factor authentication emerged as an efficient way to prevent data breaches and reduce them to a great extent. By adding an extra layer of security, this approach proved to be a significant obstacle for hackers and data thieves. While multi-factor authentication has surpassed other security measures, including 2FA and passwords, it uses a different approach to provide security to the data.

In this blog, we’ll take a closer look at how this technique works to prevent data breaches and what makes it more efficient than other security methods.

What is Multi-Factor Authentication?

Multi-factor authentication is a digital security method that places an additional layer of security over any platform that needs protection against data breaches and security threats. Its prime features include:

• It offers multiple authentication modes, including emails, SMS, biometrics, and others.
• One can customize MFA software to suit the organization’s security requirements.
• It employs hard tokens and soft tokens. Examples of these are one-time passwords (OTPs) and Time-based one-time passwords (TOTPs).

It prevents an intruder from breaching your data or privacy. Research by Microsoft says that multi-factor authentication can prevent 99.9% of attacks on your accounts.

According to Ponemon Institute research, the average cost of a data breach is $4.24 million globally. MFA significantly reduces the risk of breaches, leading to potential cost savings for organizations.

How does MFA help prevent data breaches?

The main goal of multi-factor authentication is to establish a robust security layer over the target. This layer can be accessed only by the actual owner, preventing unauthorized access. MFA has significantly increased the security satisfaction rate of users worldwide by 90%. However, to achieve this, multi-factor authentication employs specific identification processes to successfully verify the authenticity of the person trying to access the target.

Here are the identification processes that the multi-factor authentication technique uses to prevent data breaches.

Identification Through Trusted Devices

Multi-factor authentication involves verifying a user’s identity through trusted devices, which are considered reliable sources. This includes sending a unique code or a notification to these trusted devices. The user must then verify their identity by acknowledging that notification or the unique code displayed. Reliable ways of verifying the user’s authenticity through devices include push notifications, one-time passwords (OTPs), biometrics, and two-factor tokens that are widely used around the world.

Identification Through An Authenticator

Google Authenticator has emerged as a reliable source for multi-factor authentication. In this process, a unique code is displayed on the verified Google Authenticator application, which remains valid for a few seconds only. A true user can match the code on the MFA screen and authenticate themselves to access the target.

Identification Through Knowledge

 In this process, the multi-factor authentication asks users certain questions to which they provided answers earlier. Access to the target is granted only if their answers match the ones provided at the first instance. Even a non-similar upper or lowercase of the answer given can make a difference in invalidating the user’s authenticity.

Thus, using the above three authentication processes, multi-factor authentication minimizes a majority of data breaches each day. More reliable than a two-factor authentication system, MFA is a more advanced technology to provide security against data thefts and breaches.

Why is MFA important?

• Increased Security: MFA goes beyond traditional single-factor authentication (password) by adding extra layers of verification, making it significantly harder for unauthorized access.
• Reduces Risk of Data Breaches: Studies show that MFA can prevent over 99% of data breaches, protecting sensitive information and financial assets.
• Minimizes Financial Loss: Data breaches can be incredibly expensive, costing companies millions. MFA significantly reduces this risk.

Benefits of using MFA:

• More Reliable than 2FA: While 2FA adds a security layer, MFA can involve multiple factors like passwords, OTPs, and authenticator apps, offering even greater protection.
• Improved User Experience: MFA verification processes are often smooth and convenient, ensuring a positive user experience.
• Simplified Authentication with SSO: MFA eliminates the need for complex, hard-to-remember passwords. Single Sign-On (SSO) allows secure login through a trusted device, simplifying verification while reducing breach risk.
• Stronger Identity Verification: Completing all MFA steps successfully confirms a user’s legitimacy, and significantly reduces the chance of unauthorized access.

By implementing MFA, companies and users can significantly enhance their security posture, protect user data, and minimize the risk of costly data breaches.

OLOID’s Deviceless MFA

OLOID offers a Deviceless Multi-Factor Authentication solution, ensuring secure and user-friendly logins. It provides seamless MFA for frontline workers with factors such as Face, PIN, Access Card, NFC, and QR Code. Additionally, it facilitates easy onboarding/off-boarding in high-churn environments without the need for physical token management. OLOID’s embedded MFA technology complies with industry standards, featuring a consent framework, audit trail, SOC2 compliance, NIST-compliant liveness detection, and end-to-end encryption, ensuring robust data and user authentication security.