A quick summary:
- Authentication is a process that was created to strengthen the security of accounts, information, software, resources and more for businesses.
- Two-factor authentication (2FA) and multi-factor authentication (MFA) are distinct authentication processes, however MFA is a broader term that requires two or more factors of verification, while 2FA requires verification in strictly two steps.
- Choosing between them will depend on how your business operates, though some industries are regulated and require MFA over 2FA.
- Managed IT service providers like Xenex Systems play a key role in building and monitoring authentication setups.
Millions of user accounts have been compromised in Australia over the years, through corporate data breaches and cyberattacks like malware. In the Annual Cyber Threat Report 2024–25, the Australian Government revealed that cybercriminals relentlessly targeted Australians, with these types of threats increasing in frequency, using the data they collected (like usernames and passwords) to then launch more cyberattacks.
So, with that in mind, it’s pretty easy to see why Perth businesses would need an extra layer, or multiple layers, of security to help safeguard themselves and their data from cyberattacks. That’s where the idea of authentication was born, and why it’s now a pretty foundational part of any organisation’s security posture; building an extra layer (or layers) of security on top of standard username and password-based logins.
What is Authentication?
Authentication is what Australian businesses are using to make sure that only authorised people can access their data, software, apps and other resources. Imagine how much more of a cybersecurity threat it is for businesses, if all cybercriminals need is your username and password.
The process of authentication is what makes sure each user can be identified (which is usually through a username), authenticated (by entering a password only they would be expected to know) and now, authorised; where this information is then verified by the user themselves to acknowledge that they’re requesting access.
MFA vs 2FA – What Are the Differences?
This answer is not as straightforward as you think, because these two authentication methods are not completely different from each other, but they’re also not interchangeable terms. Choosing between MFA and 2FA will likely come down to what’s going to be the most relevant for your business, so it’s worth understanding both.
Two-Factor Authentication (2FA)
2FA is basically the process of verifying your identity in two ways when attempting to access information, or log in to an account of some sort. It makes sure that it’s not just your password alone that determines whether or not you (or someone else) are authorised to complete this login.
In most (if not all) cases, the first factor would be something that you can use to trigger the login process. Think a username and password, passcode or PIN. The second factor is then usually an acknowledgement of your attempt to log in to verify that it’s you. This can be done through things like a passkey, an app on your smartphone, facial recognition and a fingerprint.
2FA gets its name from requiring exactly two of the above authentication methods, and granting the user access once they have verified these… but it’s encompassed by a broader term, which is multi-factor authentication (or MFA).
Multi-Factor Authentication (MFA)
MFA is based on the exact same idea, but it incorporates systems that need two or more factors of verification. So, while 2FA is technically a type of MFA, there are instances where more than two factors are required.
For example, if your login process was a combination of entering your password, using an authenticator app on your smartphone and providing your fingerprint, that would be classified as multi-factor authentication. Simply because it requires one extra factor than 2FA would.
Without getting into the weeds too much here, you could also even use a security key as part of the MFA process, which would introduce a physical hardware element to your login process and adds an even more robust layer of protection. These were previously more relevant for high-risk industries, like medical, finance and defence, but are now becoming more widely adopted.
Benefits of Using MFA vs 2FA
While 2FA is a solid starting point for boosting the security of your information and systems (especially if you’re starting from scratch, with no authentication currently required), MFA offers a more secure and adaptable protocol. This comes with its benefits, as a more complex system of authentication protects business outcomes through having a stronger defence against cyberattacks. In some regulated sectors like some of the high-risk industries we mentioned above, MFA is actually mandatory, so another benefit is found in compliance.
Whatever the reason for implementing multi-factor authentication or two-factor authentication, another important consideration is how you roll it out across your business. Managed IT service providers, like Xenex Systems, play a super important role in configuring, building and monitoring your MFA or 2FA setups. Our team works to understand the operations of your business, which helps determine whether 2FA or MFA is required, and ensures the system is as effective as it can be.
If you’ve got any questions or would like to chat through MFA vs 2FA for your business, get in touch online or give us a call on (08) 6245 2800.
Frequently Asked Questions About MFA and 2FA
Take a look at our answers to some of the most frequently asked questions about authentication in general, as well as MFA and 2FA for Perth businesses.
What are the three main categories of authentication?
In both MFA and 2FA, the three main categories of authentication are: something you know (like a username and password), something you have (like a security key or an authenticator app on your smartphone) and something you are (like facial recognition or a fingerprint).
Can hackers get through 2FA?
Yes, cybercriminals and hackers can get through 2FA, but it’s a solid safeguard that isn’t easy to bypass. It’s a strong barrier that can prevent and protect against casual cyberattacks.
What are the downsides of multi-factor authentication (MFA)?
The downsides of multi-factor authentication (MFA) are largely superficial. While there may be an initial cost to ensure the proper set-up of a system that works for your business, and it may take a few extra seconds to log in, the benefits far outweigh these downsides.