The Benefits of Multi-Factor Authentication for Online Businesses

Multi-Factor Authentication, Online Businesses, MFA, Cybersecurity, Inside Telecom, Telecom, Data Protection, Account Protection, Account Security

In times gone by, it was believed that needing a username and password combination to access an account was adequate for security. But when passwords are the sole method of authentication, fraud attempts and data breaches may be carried out with relative ease and have become fairly common. 

If you have an eCommerce store selling custom clothing or anything else, you can keep hackers away from your systems by using multi-factor authentication (MFA) in addition to strong passwords. 

In this article, we’ll help you understand some of the great benefits of multi-factor authentication and how to implement it. 

What Is Multi-Factor Authentication?

To get access to certain resources or sensitive data, Multi-Factor Authentication (MFA) necessitates the use of not one but many independent ways of verifying the identity of the user. Passwords, physical instruments, and responses to personal inquiries are all examples of possible authentication mechanisms. Using multi-factor authentication (MFA) aids in ensuring that only approved users may access an account. 

The Benefits of Multi-Factor Authentication for Online Businesses

When it involves keeping sensitive data safe, multi-factor authentication is crucial. For online stores selling custom items, such as Spotify Merch, it can:

  • prevent data, such as your designs and buyer’s financial credentials, from being stolen,
  • monitors employee accounts, 
  • and wards off cybercriminals. 

In addition, it protects customers even if their login details are accidentally leaked. Adopting MFA for your eCommerce business will have several advantages, as listed below:

Stronger Security

A company may require all clients and employees to use multi-factor authentication methods like Google Authenticator and one-time Password (OTP) verification, in addition to passcode security to prove their identities. In this approach, they may check the legitimacy of the user.

The several levels of protection guarantee that the customers who are attempting to get access are, in fact, who they proclaim to be. So, if hackers manage to steal one set of credentials, they will still need to use other methods of identification. This way, it aids in the E-commerce fraud prevention efforts of your business.

No Illegal Accesses

Using MFA, an eCommerce business may have overall authority over who has the ability to access confidential information and who does not by determining who has permission. Using at least two different ways to verify a user’s identity is the best way to ensure that the data will never be accessed by anybody who is not specifically allowed to do so. 

MFA is of great use to companies that send data to third-party collaborators as it is frequently exchanged in an unsecured manner. MFA helps prevent this from happening. 

Everything Is Done Based on Required Regulations

In order to meet the standards of certain industries, it may be necessary to implement MFA. In order to keep unapproved individuals from gaining entry to systems, Payment Card Industry Data Security Standard (PCI-DSS) mandates the use of multi-factor authentication in certain scenarios. 

Multi-factor authentication (MFA) is also useful for complying with the EU’s Payments Service Directive 2 (PSD2), which mandates robust consumer authentication. Furthermore, MFA aids healthcare providers in meeting the requirements of the Health Insurance Portability and Accountability Act (HIPAA).

For this reason, MFA compliance guarantees little disruption, even if application and software upgrades have unanticipated side effects.

More Trustable and Convenient Usage

With MFA that is adaptive, the risk is evaluated with the assistance of contextual and behavioral data, like location, IP address, and time since the previous authentication, etc. Additional authentication factors may be used to verify a user’s identity if their IP address is suspicious (for example, coming from a public place like a coffee shop or an unidentified network) or if any other warning signs are detected.

Better UX

Online businesses may tailor the user experience (UX) to their own requirements owing to the flexible nature of every verification element. For instance, Smartphones might include scanners for fingerprints, or iPhones can even employ retinal recognition. In certain situations, just two authentication factors will do, but in many cases, you can choose to utilize more.

Adapting multi-factor authentication to your company’s specific requirements is simple. Multi-factor authentication (MFA) may be enabled for any and all users. When multi-factor authentication (MFA) is used in conjunction with single sign-on, it removes the need for users to remember several sets of login credentials, simplifies the login process, enhances the UX, and decreases the number of support requests received by IT.

How to Implement Multi-Factor Authentication for Online Business

If you’ve figured out how to make money on Etsy, you can move on to making sure no one steals that money from you through cybercrime. You also want to ensure the security of your customers and the sensitive data that your eCommerce store receives from them. There are five types of MFA methods you can implement in your business, as listed below. However, implementing several checks is the safest bet.

  1. SMS Authentication

You’ve undoubtedly used this kind of MFA on services like Gmail since it’s among the most popular methods out there. In this method, the website you’re trying to access will send a unique code to your mobile device by text message once you’ve submitted your usual login credentials.

  1. Email Authentication

Authentication through email is functionally equivalent to authentication via text message. The only difference is that instead of receiving your unique code by text on your phone, you will get it in an email. It’s important to remember that your email might be hacked at any time. You may feel somewhat more secure using SMS instead of email since it is more difficult to hack into your cell phone and intercept communications.

  1. Security Question

This is one of the first implementations of multi-factor authentication, yet it also happens to be one of the most insecure. Although security inquiries are intended to protect private data, the internet makes it simple to get answers to many of them. You may get the answers to some inquiries, such as which city someone was born in or what’s their mother’s maiden name by simply scouring their social media profiles and using one of the many personal data web scrapers available online.

  1. Software Authentication

A proprietary software offers a novel spin on authentication with a unique code, going beyond the standard email/SMS model. This approach calls for supplementary software to validate logins by means of a requested approval or code. Google Authenticator is the most widely used service for this kind of MFA.

  1. Biometric authentication

The most cutting-edge kind of MFA is biometric authentication, which employs distinctive personal traits like face or fingerprint identification to confirm the identity of the user attempting to access the protected data. Apple and Samsung, two of the leading smartphone makers, were early adopters of this identification technology and helped popularize it.

Wrap-up

Uncertain how to begin with multi-factor authentication (MFA)? Consider the applications and systems to which you often log in via the internet. These constitute the most vulnerable computer systems and must be safeguarded immediately. Typical examples include:

  • your VPN,
  • your webmail,
  • and whatever service you subscribe to in the cloud.

There is an abundance of multi-factor authentication (MFA) solutions available, albeit their methods and underlying technologies may differ. Consult with a specialist in data protection to determine the optimal course of action for your online business.


Inside Telecom provides you with an extensive list of content covering all aspects of the tech industry. Keep an eye on our Cybersecurity sections to stay informed and up-to-date with our daily articles.