Fraudsters have been trying to disrupt the sanctity of business dealings since the introduction of the digital era. Digital experts develop new and rising technologies whereas criminals find tactics to hack and crack them. Cybersecurity systems are investing millions to create a secure and safe security system to combat these threats.
But there are many ways financial institutes, mobile applications, and other digital platforms can adapt to combat multiple types of fraud. Identity verification services, facial recognition, and 2-factor authentication are some of those digital security systems that are helping firms combat scams and frauds.
2-Factor Authentication – An Added Security System
The majority of people have adopted careless practices when setting a password for their personal accounts. Even though companies have added extra security such as asking a personal question for instance “your pet name”, and “the place you have lived in” but these can easily be hacked through social media screening of the individuals’ profile. But to combat these threats, added security measure like 2-factor verification is the optimal choice. Not only individuals but businesses can also benefit from it while identity thefts are prevailing around the globe.
2-factor authentication is an identity risk management solution that is designed for the digital era of identity thefts. Although many companies have now shifted to 2FA there are still some companies using outdated security systems and do not realize the importance of added security. Accessing sensitive information safely is crucial for all business entities while the majority of the businesses that have started dealing with customers on online platforms have not even met them in real life. Outdated security systems have been a target of phishing scams for a long time and this is an added reason why companies should adopt 2FA.
2-factor authentication is also beneficial for enhanced due diligence compliance that helps protect accounts from different vulnerabilities. Banks store all the information of an individuals’ account at the backend and if in case their data is compromised and gets in hands of scammers then both the client and bank can incur billions of losses.
Furthermore, without the use of 2-factor authentication businesses and individuals have to deal with phishing scams.
What is a phishing attack?
Criminals send phishing emails that illegally access sensitive information such as passwords and PINs. The email usually contains links, a message, or a fax from a computer, that demands information manipulating that it is from the official channel when it is actually not.
Users then unknowingly provide the information and the scammers are successful in the traps they lay for the users. Criminals then access the account and perform transactions. These criminals easily target the customers because of a lack of 2-factor authentication. Just by entering the username and password, the criminals access the account but if they had to enter 2FA then they wouldn’t be able to access the account and the customers would be alerted of the fraudster trying to access their account.
How Does 2-factor Authentication Benefit Different Sectors?
2-factor authentication is an added security system that protects the account from multiple attacks. For instance, if your password is compromised and someone tries to log in they wouldn’t be able to log in but they will be asked for an added security code that you may receive in your email or your authenticator app, or your mobile phone. Businesses are using 2 FA to protect the sanctity of their firms from potential threats.
Easy compliance with regulations
Moreover, financial organizations are obliged to comply with know your customer regulations. These regulations state that all financial organizations have to secure users’ financial accounts as a security protocol. This compliance can easily be met through 2-factor authentication.
Social media account hack
Other tactics criminals are using these days is to target social media accounts after many financial organizations opted for 2FA. Criminals hack social media accounts and their chats. They then use them to blackmail users into providing their sensitive financial details. But many social media platforms have now started opting for 2-factor authentication to protect social media users from being blackmailed and then incurring losses.
Wrapping It Up
Implementing 2FA is not very expensive and businesses can easily adopt this useful technological change. Businesses can have a high reputation when users feel secure and have a good experience using their services. Furthermore, businesses will flourish with happy customers that prefer added security rather than exposing their valuable users to potential threats. Also, the implementation of this technology can help regulatory authorities combat financial crimes.
