“81% of breaches are due to weak or stolen passwords. 73% of accounts have repetitive passwords. Your customer might be in the majority but your business could be liable.”

Two-factor identification (2FA) guards your account with an extra layer of security. It makes things much harder for those attempting unauthorized access through stolen or hacked passwords.

In the first week of September, the FBI warned the US financial sector of enhanced risk of “credential stuffing” cyber attacks. This is a type of online security issue where hackers get usernames and passwords through data breaches and use them to gain unauthorized access to accounts. Billions of passwords have been leaked in the last five years enabling hackers to target banks, pensioners, and accounting firms.

We are living in a digital age, where everything from medical advice to money, is accessed through our virtual identity. Anyone breaking through your login details can steal money from your account, cause losses to clients, and even damage your reputation through digital frauds. In fact, 81% of breaches are due to weak or stolen passwords.

However, a survey points out 73% of accounts have repetitive passwords while 54% don’t change passwords more than five times. This signals the vulnerability of passwords and a need to create a system that acts as the second line of defense against unauthorized access. The 2FA option presents a workable solution and is fast becoming a default option for banks, insurers, pension funds, and accounting firms looking to protect their data.

What is 2FA

Two-factor authentication is a two-step verification process. This entails two stages of identification and confirmation making unauthorized access twice as difficult. The first-stage login includes your password while something you are or you have is used to check credentials in the second stage. Authentication factors used at stage two may include any of the following.

• Biometric factors, including facial, fingerprint, voice, or eye scan.
• A personal identification number or personal secret.
• Any ID card number or security token.
• Password or PIN generated through a third-party app on your smartphone.
• OTP sent on your mobile.
• Location data with or without time locking.

Though 2FA looks simple, the validation process goes through multiple sub-processes to ensure a high level of security. As soon as you log in using your password, the website creates a unique security code. The server validates it and prompts the second login using authentication factors. Only after the code generated and used during the second login is recognized, you can access the account.

Why 2FA is important for Financial Security

• Extra Layer of Security
According to cybersecurity firm Symantec, 2FA implementation could stop an 80% data breach. This particularly holds importance for those in the finance and accounting industry, as hackers decamped with more than $107 billion from individual accounts between 2012 and 2018. The UK Pension Regulator has also witnessed a 148% surge in cyberattacks.

With 2FA in place, accounting and finance firms are assured of the added security of the client data. A time-sensitive extra login process enhances the security of data and prevents hackers from immediate access. This particularly helps those activating cloud accounting through mobile devices. Even if your password is phished or hacked, the second stage neutralizes the intruder.

• Peace of Mind for Your Customers
Clients of a mid-sized US financial institution lost $3.5 million to such cyberattacks between January and August 2020. Hackers from North Korea were able to rip off financial firms of $2 billion in the last decade using cyberattacks. The Hiscox Cyber Readiness report estimates that about 1,971 firms were subject to breaches leading to an average loss of $57,000 in 2020. According to it, a series of cyberattacks forced a UK-based financial service provider to forgo $87.9 million.

These risks look less intimidating with 2FA implementation. Hackers can’t fleece you by just getting the password. The second-stage verification creates a hurdle forcing them to stay away. Secured biometric authentication can assure more robust security, safety, and peace of mind.

• Prevents Theft, Pass Security Audit
Individuals and firms opt for 2FA because of the vulnerability of passwords, which is the first line of defense in the digital age. But two-thirds of users have identical passwords everywhere putting themselves at a big risk. There have been recurrent incidents where hackers get hold of billions of passwords every day. Nine out of every 10 passwords can be breached in less than six hours. And making things worse, the COVID-19 lockdown has seen a 300% rise in cyberattacks.

Accounting and financial firms stand a chance to neutralize password-hacking threats with 2FA. While this prevents theft, it also offers an assurance of data protection to clients. This especially when remote access and working has become an accepted norm. An extra layer of security enables the implementation of better safety practices, a key parameter of ranking in the security audit.

Payment Card Industry Data Security Standards (PCI DSS) makes it mandatory for merchant account brands to implement 2FA. Its article 8.3 calls for 2FA as essential for any remote access.

Federal Financial Institutions Examination Council (FFIEC), a supervisory body of financial institutions, has called for multi-factor authentication in its latest 2011 guidelines.
Any financial institution, which is looking to get ISO-270001 certification, requires to have 2FA in place.

• Overcome Security Fatigue
While creating passwords, many often feel the pinch of remembering complex and strong passwords. This sets in security fatigue and results in creating easy-to-remember passwords and often identical ones. Many keep it stored on browsers or systems too. Hackers just love such behavior of account holders.

However, with 2FA, hackers have to confront with two-level of passwords that differ from each other. The second piece of information may not be available easily with breaches. Again, 2FA is not only impenetrable but also actively involves account holders, who are directly notified to enter codes or give fingerprints. It creates a sense of digital security and responsible online behavior that negates risks.

 

Do you have a concern about your website security?

Presence Consulting has recently completed 2FA feature enhancements with the latest technological features for our clients for their customer business applications. Contact us to know more about how we can help you adopt robust security measures to fend off cyberattacks.