🔹 Definition
Multi-Factor Authentication (MFA) is a security mechanism that requires users to provide two or more independent verification factors to gain access to an account, system, or application. It significantly strengthens authentication by combining something you know (e.g., password), something you have (e.g., phone or token), and/or something you are (e.g., biometric data).
MFA is widely used in financial services, identity verification, compliance systems, and cybersecurity frameworks to protect against unauthorized access, account takeovers, and identity theft.
🔹 Frequently Asked Questions (FAQs)
Q1: What are the common types of authentication factors in MFA?
- Knowledge factors: Passwords, PINs, security questions
- Possession factors: One-time password (OTP) via SMS, authenticator apps (e.g., Google Authenticator), hardware tokens
- Inherence factors: Biometrics such as fingerprints, facial recognition, or voice
Q2: How does MFA improve security?
- Even if a password is compromised, access is blocked without the second factor
- Reduces risk from phishing attacks, credential stuffing, and brute-force attempts
- Enhances regulatory compliance in frameworks like GDPR, PSD2, and ISO 27001
- Builds customer trust in digital systems by preventing unauthorized access
Q3: Where is MFA commonly used?
- Online banking and fintech platforms
- Cloud services and enterprise applications
- eCommerce checkouts and payment gateways
- AML/KYC onboarding portals
- Email, VPN, and remote work systems
Q4: Is MFA required for regulatory compliance?
Yes, in many jurisdictions and industries:
- PSD2 (EU) mandates MFA for payment service providers under Strong Customer Authentication (SCA)
- MAS TRM Guidelines (Singapore) require MFA for online financial systems
- FATF and Basel Committee support the use of MFA in financial crime prevention
- HIPAA and GDPR encourage MFA for data protection
Q5: What are best practices for implementing MFA?
- Offer multiple MFA options (e.g., authenticator app, biometric, SMS OTP)
- Avoid sole reliance on SMS-based OTP due to SIM-swap vulnerabilities
- Integrate MFA with risk-based authentication (RBA) for flexible enforcement
- Educate users on recognizing phishing attempts targeting MFA credentials
- Monitor for MFA fatigue attacks (prompt bombing) and require re-authentication for sensitive actions
