9
What is Two Factor Authentication (and Why Is It Important)?
If you’ve taken even just a single moment to consider your online security, you have likely heard of the term Two-Factor Authentication (2FA) or perhaps Multi-Factor Authentication (MFA). While these two ideas may sound complex or even intimidating, we promise you that they aren’t, and we’ll break down exactly what they mean.
Going one step further, after we discuss what exactly Two-Factor Authentication is and why it’s essential, we’ll highlight how to enable it for some of your online accounts. Especially when it comes to online banking, Two-Factor Authentication can be a life-saver that helps increase account security, and protect your finances.
Let’s break down the term ‘Two-Factor Authentication.’ For starters, you already know what authentication is, and you’ve likely used a password to log into your online accounts. When we authenticate something, we provide information that helps prove that we should have legitimate access to something, such as an online bank account.
There are four types of authentication in practice, and we call these authentication factors. The authentication factors that we may use are as follows:
We are pretty familiar with the idea of ‘something you know’ as we use passwords all the time to access our accounts, but passwords can have their faults. We recommend looking at our guide on creating strong passwords to beef up your security.
Quite simply, Two-Factor Authentication requires two forms of user authentication rather than a single form to allow you to access a digital system. By requiring two forms of authentication, account providers create more secure systems that aren’t easy to breach.
For example, you may be required to enter a password (something you know) and provide a fingerprint scan (something you are). This is a form of Two-Factor Authentication, and we’ll dive into exactly how it works in the next section.
Online services and applications that utilize Two-Factor Authentication tend to have you use a password (something you know) and your smartphone (something you have).
But, you may ask, how is my smartphone utilized as a second form of authentication?
Generally, one of two things will happen, either a security key will be texted to your device, or an app on your smartphone will generate a unique code that you will be prompted to enter. Either way, physical access to your smartphone is needed to access your account.
Let’s look at how this two-factor authentication process works in practice. Here is a scenario in which we are logging into ‘Big Money Bank’, and our account is set up with Two-Factor Authentication security to keep out the baddies.
If you followed our above example, you may have noticed something about the Two-Factor Authentication process. Even if a hacker was to figure out our password, they would be unable to log into our bank account because they don’t have access to our smartphone—this is the magical security of Two-Factor Authentication.
We highly recommend that you enable Two-Factor Authentication for any of your online accounts that may support the feature. Some systems will text you an access code, email you an access code, or require you to use a mobile app that generates the security key. Either way, you are making it more difficult for malicious users to access your accounts.
Utilizing Two-Factor Authentication is something that you should consider for all of your online accounts and important applications. However, protecting your financial information should be at the top of your priority list due to its intrinsically delicate nature.
Most banks automatically enable Two-Factor Authentication, but some do not, so it is always best to manually check. Additionally, you may be able to enable more robust versions of Two-Factor Authentication to keep your account even more secure.
To make things easier, we’ve briefly outlined how to enable Two-Factor Authentication with some of the most popular banks that offer the additional security feature. Simply follow the steps below to enable Two-Factor Authentication for your bank.
Some banks take automatic control of Two-Factor Authentication, enabling it for you without requiring a request. Furthermore, some banks may not allow you to disable Two-Factor Authentication as it is necessary to protect your account integrity.
For more information and assistance with Two-Factor Authentication, we recommend contacting your bank or institution using the phone number on the back of your credit or debit card. You can also visit your bank’s website and help section for more information.
While we recommend prioritizing getting Two-Factor Authentication set up for your financial accounts, you’ll ideally want to set it up on any website that offers the extra security.
To get you started, we want to provide you with instructions on setting up Two-Factor Authentication for Apple and Google accounts. With our Android and iOS smartphones and tablets revolving around these two platforms, it is essential to keep them secure.
Should I use Two-Factor Authentication?
Yes, we highly recommend using Two-Factor Authentication for your accounts. The Two-Factor Authentication process dramatically increases the security of your account by requiring more information than a standard password, such as verification codes.
With the feature enabled, it is more difficult for malicious users to gain access to your online accounts thanks to the improved authentication methods employed.
How do I know if I have Two-Factor Authentication?
If you have Two-Factor Authentication enabled for your online accounts, you will be prompted to enter a unique verification code upon login after your password. This code is generally sent via text message, email, or generated by a third-party authenticator app, such as Authy, on your smartphone or computer.
If you are unsure whether the security feature is set up for your account, it is best to contact the company your account is with and enquire about Two-Factor Authentication.
What is the difference between a password and Two-Factor Authentication?
A password is one form of authentication. Two-Factor Authentication takes it one step further, requiring you to provide both a password and one other bit of information, such as a verification code texted to your smartphone. Two-Factor Authentication helps to increase overall account security.
How do I turn off Two-Factor Authentication?
We highly recommend against turning off Two-Factor Authentication (seriously, don’t do it); it is a critical security feature that adds security to your accounts. If you need to turn off the feature, you’ll want to reach out to the company your account is with and inquire about the process.
Michael Archambault is a senior writer with The Penny Hoarder specializing in technology.
Ready to stop worrying about money?
Get the Penny Hoarder Daily
Some of the links in this post are from our sponsors. We strive to provide accurate, reliable information.
Compensation may influence how and where products appear on our site (including their order), and we do not include all companies or offers.