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2 Factor Authentication- An Extra Layer of Security to Prevent Identity Theft

Digital businesses are badly affected by criminal activities. The security measures are insufficient to prevent crimes. Thus, 2FA fills that gap. Nowadays, due to digitalization, people worldwide are connected through the internet. Everything is possible to do using an internet connection ranging from establishing the connection or to shop digitally. No doubt, digitalization has come up with loads of opportunities for businesses, individuals, and most importantly criminals. Fraudsters have become more sophisticated, which is worse than old-school techniques in carrying out crimes.

Using technology-driven tools and software the criminals can easily breach social media accounts and financial accounts that don’t have strong security measures. Therefore, many businesses are becoming victims of criminals and due to this they have to face huge monetary losses. Identity theft and financial frauds are on the verge, disrupting the business flow. However, by employing 2 factor authentication into their systems the business can lay another layer of security that will prevent every suspicious activity that tends to exploit the system.

What is 2 Factor Authentication?

Most of us tend to adopt practices while setting the password or pin for the accounts. Due to which we may face adverse consequences like hacks or breaches of data. Yet, the platform has provided add-ons to boost up security measures, which is usually asking the personal question for example what was the first pet? Or what is the name of your best friend? This was a piece of cake for the criminals in order to bypass the security checks. Therefore, due to the rise in financial crimes, identity thefts, and account takeover frauds businesses and social platforms call for the solution to uplift the security measures. So what is 2FA? – the most optimal solution to such problems.

Two-factor authentication is considered as the identity risk management solution which is purposely developed to deter digital identity fraud. Some businesses have added this security-boosting solution into their system, but many companies didn’t really understand the potency of this automated identity verification solution. They are relying on the old-school verification procedures putting themselves and the customers at the risk of financial loss or data breaches. The digital businesses platforms which don’t comply with 2-FA are more prone to phishing attacks.

Additionally, this solution is also fruitful for enhanced due diligence processes as it helps to secure personal accounts from multiple vulnerabilities. Financial corporations have to deal with the sensitive information of the customers, therefore, they can bear the risk of criminal activities, as they may result in serious consequences for banks as well as for the customers.

Phishing Attacks – Injurious to financial Institutions

Phishing attacks are referred to as social engineered attacks that are intentionally done in order to breach databases, bank accounts, and social media accounts just to gain access to victims’ personal information. The data could be login credentials of financial accounts which can impact adversely. Usually, the criminal activists portray themselves as a legit business or resource and send the mails to the designated victims that stimulate them to click on the link placed in the email.

Emails are the only way, but the real problem is the link. By the time the victim has opened the link, they get redirected to the fake websites which no doubt look legit. But, in reality, it’s the booby trap in which the victim has been trapped. Unfortunately, if someone is tricked and falls prey to such messages, the criminal activists deliberately use such sensitive information for their personal welfare.

Diving deeper, the link which was clicked by the victims could possess a virus, which is then able to install malware software into the systems of businesses as well the individuals.

How is Two Step Authentication beneficial for finance organizations?

2FA uplifts the security measures. In case if someone doesn’t remember the password/pin or the criminals have taken over the password, the digital platform that deploys this automated solution is impossible to be accessed by any illegitimate entity. Due to which the information placed inside the accounts remains secured.

Financial corporations primarily, for instance, banks must employ two-factor authentication services in their system. In addition, businesses are obliged to incorporate client verification regulation which states that the financial institution must protect the customers’ information and there should not be any compromise over confidentiality procedures. So, it’s mandatory to integrate such a beneficial solution for utmost protection.

Final Thoughts

Deploying 2 factor authentication doesn’t require high funding nor is it hectic to cope with. The financial business gets heaps of benefits by using technological-driven 2fa identity verification solutions to enhance security measures. This will save businesses from monetary losses as well as hefty fines from not adopting verification laws. This also enables businesses to fight the war with the fraudster and pull them from the grounds.

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