What is 2FA? A Complete Guide to Two-Factor Authentication and Why You Need It

Imagine someone trying to hack into your email. Do you think a single password is enough to stop them? Step in 2FA, an extra layer of security designed to protect sensitive information across devices and programmes. 

What is 2FA (Two-Factor Authentication)?

Two-factor authentication, commonly called 2FA, is a security practice that has become a mainstay across organisations and industries in the last two decades. Essentially, 2FA is an added precaution, like adding an extra lock to your front door.

When a user logs into an account and enters their password, that's the first factor complete. 2FA goes the extra mile by requiring an additional step to prove it's really you. The second factor could be a code sent to your phone (SMS-based 2FA), the most common two-factor authentication practice, a fingerprint scan, or even a specific authentication app.

How Common is 2FA? / Who Uses It?

Here are some real-life examples where you might come across 2FA:

• Email Accounts: Our email addresses contain a lot of information about us and often withhold sensitive or personal info that hackers or cybercriminals could leverage to their advantage. The most popular email services, such as Gmail and Outlook, have responded to this by integrating 2FA to protect your emails.
• Banking and Financial Services: Another area cybercriminals are likely to target for obvious reasons is online banking apps and websites. Banks such as Barclays HSPC and digital payment companies such as PayPal have all integrated 2FA to ensure their users and their money remain secure.
• Social Media: Social media has become rife with cybercrime in recent years, with several phishing attacks and identity theft being carried out across the most popular social media channels (Facebook, LinkedIn, Instagram and X). Fortunately, the platforms have also responded by adding an extra layer of security in the form of 2FA to safeguard and secure social media profiles

Why Do We Need 2FA?

As opposed to its predecessor (single-factor authentication or SFA), 2FA offers a range of benefits to organisations that integrate it into their systems and end users who store their personal information and account details on them. Here are five key benefits that can be reaped from opting for 2FA:

1. Enhanced Security: It will come as no surprise that the first advantage of having 2FA is the improved security that comes with it. With 2FA, even if somebody manages to steal your password, they still require the second factor (such as an SMS code) to access your account. This makes it much harder for cybercriminals to gain unauthorised access and acts as a deterrent.
2. Protecting Against Phishing: Many companies and users have fallen foul of a phishing attempt—perhaps the most significant cyber threat in the world to date. According to the Cyber Security Breaches Survey 2024, 84% of businesses and 83% of charities reported having experienced phishing attacks in the past year.
3. Reduced Risk of Identity Theft: Another substantial issue in the cyber world is the ever-rising and impactful crime of identity theft. Financial and investing advice company The Motley Fool reported last month that '552,000 cases of identity theft had been reported through the first half of 2024', a statistic that is on track to exceed 2023's reports. Providing an extra hoop to jump through in 2FA, 2FA helps reduce the risk of identity theft.
4. Peace of Mind: As a Managed IT Services Provider specialising in providing robust cybersecurity measures for our clients, we know how much extra peace of mind can be garnered from additional security processes to protect your business and personal data. With 2FA, you can go about your day-to-day activities through your email, baking, and social media accounts with peace of mind.  
5. Compliance with Regulations: Since its rise in popularity in the mid-2000s, 2FA was initially met with resistance because users found it inconvenient and believed that passwords alone were sufficient for security. However, as cyber threats have become more sophisticated, the need for more robust security measures has become evident, leading to the widespread adoption of 2FA in 2024. Many industries and organisations now require 2FA to comply with security regulations and standards, ensuring that sensitive data is adequately protected.

Which Type of 2FA is Best?

We've put together a pros and cons list for each type of 2FA to help you decide which type may work best for you:

SMS-Based 2FA

Let's face it: no one goes anywhere or does anything now without their phone these days. Therefore, it can come as no surprise that its ease of use and widespread availability make it the most popular form of 2FA.

Pros:

• Convenient: It is easy to set up and use; no additional steps are required to gain access (logins, Face ID, etc.)
• Widely Accessible: Today, 'approximately 4.88 billion people own a smartphone,' according to Backlink. If you consider that the global population is around 8.2 billion, then roughly 60% of the global population has access to SMS-based 2FA.

Cons:

• Security Risks: In terms of downside, SMS-based 2FA could pose a security risk as it can become potentially vulnerable to SIM swapping and interception. Potential cyber attackers could also see the code appearing as a notification on the front of your device in passing.
• Reliability: Issues can arise from SMS messages when texts are delayed or not delivered, meaning users can face frustration when logging into their accounts or services.

Despite being the most popular choice, it's important to be aware of the limitations of SMS-based 2FA. A safer bet might be authenticator apps for any form of 2FA, which may need more robust protection.  

Authenticator Apps (Microsoft Authenticator, Authy)

Authenticator apps are the standout choice when it comes to security. We enforce this type of 2FA so that our employees can access their Microsoft programmes and HR portals, both of which contain business critical and personal data.

Pros:

• High Security: Authenticator apps generate time-based, one-time passwords (TOTP), meaning the codes are changed frequently, making life harder for potential cyber attackers.
• Offline Access: These apps also work without an internal connection; therefore,  they can be used virtually anywhere.

Cons:

• Setup Required: Authenticator apps need to be installed and set up, which can take time and memory space.
• Device Dependency: You may lose access if you lose access to the device on which you've installed the authenticator app.

We trust authenticator apps because they add that all-important extra layer of protection to keep our employees and the business' data safe and secure.

Biometric Authentication (E.g., Fingerprint, Face ID)

Last but by no means least, we have biometric authentication – a means of verifying your identity using unique physical characteristics, such as fingerprints or facial recognition technology.

Pros:

• High Security: Whereas other forms of 2FA could be bypassed, biometric authentication is as safe as houses when it comes to security because biometric data is unique to each individual, making it nigh on impossible for cybercriminals to replicate.
• Convenience: Users don't need to be bogged down by additional apps or devices; just a quick scan of a face or fingerprint, and you're in! Biometric methods are also more likely to enable fast and seamless access when they work.

Cons:

• Privacy Concerns: Some users may be uncomfortable with biometric data storage because it involves their personal information. There are also concerns about how biometric data might be used for surveillance or tracking without the users' consent.
• Device Dependency and Cost: To support biometric data, you need the latest technology, which can prove costly and lead to users becoming overly dependent on the device for their biometric data.

On the whole, biometric authentication offers a strong balance of security and convenience, making it another excellent choice for Two-Factor Authentication (2FA).

Conclusion

Now, it's up to you to decide which 2FA is best for you or your business. Each form of 2FA has its unique selling point (USP), and what may suit one business may not always be the most suitable for another.

What's not up for debate, however, is that 2FA is a worthy choice when securing your personal or professional data. This all-important extra layer of security could be the difference between a successful cyber incident or a successful cyber defence.

If you require any more information regarding 2FA or would like to discuss this in more detail with one of our cybersecurity experts, please contact the team today by dropping us a call (0333 2412320) or an email (hello@netitude.co.uk).