Multi-factor authentication (MFA) is a security method commonly used in cloud services and industries like healthcare and technology to protect sensitive data against unauthorized access. In financial systems around the world, MFA is often mandatory to comply with regulatory standards and safeguard critical transactions against fraud and cyber threats.

Before diving into the steps to enable this form of authentication, let’s review the MFA definition, its benefits, and examples to see how to enhance security in your business.

MFA meaning

MFA is an authentication method that requires users to provide two or more forms of identification before accessing an account, system, or application. Unlike traditional methods, which typically rely on just a password, MFA adds more layers of security by incorporating additional verification steps, making it harder for unauthorized individuals to gain access to your accounts.

MFA strengthens access control by combining different types of authentication:
 

1. Knowledge-based authentication: This method involves something you know, such as a password, that the user must provide to gain access
2. Possession-based authentication: This type requires something you have in your hands, like a smartphone, to generate a one-time code or provide access
3. Inherence-based authentication: This form relies on something you are, incorporating biometric factors, like facial recognition or fingerprints, to verify identity
4. Location-based authentication: This method takes into account the user’s location, allowing access only from trusted geographic areas or networks
5. Time-based authentication: This form restricts access based on time, ensuring that logins are only permitted during specified time frames

With MFA, even if criminals steal your username and password, they still need to provide other verification factors. This practice reduces the risk of security threats and minimizes potential damage from compromised accounts.

Multi-factor authentication examples

According to Prove’s State of MFA Report, 36% of consumers think MFA should take ten seconds or less. Choosing methods that enhance security while keeping users satisfied is a strategy to reduce friction in the login process and increase adoption.

To select the best methods for your security strategy, let’s take a look at the most common MFA examples:

Why is MFA important?

Passwords alone can’t provide enough protection against phishing attacks and insider threats because attackers can easily compromise them. By implementing extra measures like MFA to safeguard your unstructured data, you can ensure security, compliance, and trust.

Enhance security

Keeper’s US Password Practices Report shows that 56% of users have the same password across multiple sites and apps. On average, respondents use the same credentials for four different accounts. If one of these accounts is compromised in a data breach, attackers can easily use the stolen credentials to access other accounts.

Multi-factor authentication for business offers a layer of protection that makes your accounts less vulnerable to these threats, serving as a measure you can complement with strong password policies.

Ensure compliance with regulations

Regulations such as PCI DSS — which sets the standards for secure payment transactions — require companies to implement strong measures to protect payment card information. These measures include file encryption, access controls, and MFA. Failure to comply can result in hefty fines and even reputational damage.

Adopting platforms with secure MFA shows your business’s dedication to protecting data, ensuring compliance with regulations, and reducing the risk of legal repercussions.

Increase user trust

Trust fosters stronger customer relationships, especially when it comes to handling sensitive data. Security incidents can damage trust, resulting in lost customers and a tarnished reputation. Implementing MFA enhances your company’s security posture and helps maintain a strong reputation in the marketplace.

How does MFA work?

When a user tries to log in, MFA requires the user to present at least two forms of identification, a method known as two-factor authentication (2FA). However, some implementations go beyond 2FA, allowing for three or more factors.

Here’s how the multi-factor authentication process typically works.

1. Log-in attempt: The user enters their credentials (usually a username and password) to access a system or app
2. First-factor verification: If the username and password match those stored in the system, the user can proceed to the next step; if not, the login attempt fails
3. Second-factor prompt: The system may instruct the user to enter a code sent to their phone, approve a login request through an authentication app, or respond to a push notification
4. Second-factor verification: If the verification is successful, the user can proceed to the final step; if it fails, the system denies the user access
5. Access: Once the system verifies two or more factors successfully, the user gains access to the application or system

How to enable MFA setup in the cloud: 5 best practices

Secure cloud data storage and document management systems often provide different methods of MFA for businesses seeking strong security practices. How to enable multi-factor authentication depends on the cloud platform and its features, as each has different setup processes and requirements.

Follow these five best practices to implement MFA in the cloud:

1. Select your multi-factor authentication method

When looking for secure MFA solutions, ask yourself these questions:

• What are our organization’s specific security requirements?
• Who are the primary users of our systems?
• What devices and platforms do our users commonly use?
• How critical is user experience in our authentication process?

By assessing the user base, types of devices, industry regulations, and threats you are most concerned about, you can tailor your MFA implementation to address your business’s specific needs. For instance, SMS messages are a popular form of MFA, but if you have a distributed workforce living or traveling in countries that don’t support MFA through SMS, this option might not be practical.

Making those questions and assessing your organization’s needs before implementing MFA typically falls on the IT or security team, often in collaboration with management and compliance teams.

2. Complete the setup requirements

Once you’ve selected your method, follow the setup requirements provided by your cloud content management solution to configure it. This process typically includes entering your chosen authentication method and verifying it.

Thoroughly completing this step is crucial, as any misconfiguration can create vulnerabilities. For example, if you use an app-based authenticator and fail to sync the correct device, you could unintentionally expose your account. Double-check your settings and ensure that all required fields are filled out to avoid any gaps in security.

3. Test the MFA setup

After setting up MFA, test the configuration to confirm it functions as intended. Encourage users to attempt logging in using their MFA method. This step helps identify any potential issues before they impact real users.

For instance, your company might discover during testing that some users struggle to use the authentication app because their mobile devices aren’t compatible, allowing you to address the issue before rollout.

4. Review security settings

Don’t overlook the importance of reviewing your overall security settings. Integrating additional authentication methods, such as single sign-on (SSO), simplifies user access and reduces the chances of password fatigue.

5. Adopt other MFA best practices

These other MFA best practices also enhance your business security:

• Consider encrypting documents: You can use encryption to protect data both at rest (within storage) and in transit (when sharing it online), preventing malicious actors from viewing the content if they gain access to your account
• Implement granular access control: This measure limits access based on roles — such as viewer, editor, and manager — ensuring that only authorized users gain file and folder permissions
• Adopt password-protected file sharing: Cloud collaboration platforms offer this feature, which makes shared documents inaccessible without the correct password
• Discuss MFA adoption: Okta’s Secure Sign-in Trends Report shows that highly regulated industries, like healthcare and the pharmaceutical industry, have lower MFA user adoption rates (56%) than the overall adoption rate (64%), so there’s an opportunity to discuss the barriers preventing widespread implementation of this measure

Explore the top features and capabilities of cloud collaboration tools.

Implement secure MFA methods with Box

Box provides an all-inclusive platform for creating, managing, and accessing files from anywhere. The Intelligent Content Cloud combines data storage, sharing, collaboration features, and advanced authentication methods like MFA and SSO to protect your content.

With Box, you reinforce your security controls with AES 256-bit encryption, password controls, device trust, and suspicious user activity alerts. This way, you manage and share content with confidence while keeping content in accordance with industry standards.

With over 1,500 applications, Box allows you to centralize your content in one secure platform while minimizing the need for multiple passwords. Plus, you manage your unstructured data to get the most value from it.

Contact us today and discover how to integrate multi-factor authentication into your security strategy.

While we maintain our steadfast commitment to offering products and services with best-in-class privacy, security, and compliance, the information provided in this blog post is not intended to constitute legal advice. We strongly encourage prospective and current customers to perform their own due diligence when assessing compliance with applicable laws.