Why Multi-Factor Authentication Is Now Required for Cyber Insurance

By March 14, 2022 March 15th, 2023 Compliance/Regulations, Cybersecurity
Multi-Factor Authentication Is Required for Cyber Insurance

We have some important news: “2 factor” authentication is now being required for cyber insurance. Multi-factor authentication (MFA) is also called Two-Factor Authentication or 2FA. The new cybersecurity insurance requirements impact schools, local governments, small and large business, and other organizations. Failing to have MFA in place means you may not be able to get cybersecurity insurance, which puts your business or organization at risk.

What Is Multi-Factor Authentication (MFA) aka 2 Factor Authentication (2FA)?

Multi-Factor Authentication aka two-factor authentication is a way to ensure that hackers don’t access personal or business accounts by hacking a password. See, what happens when a single-factor authentication scheme is used is that the hackers can much more easily get into an account. 

What is single factor authentication (2FA)? Well, when you sign into a website and you use a username and a password, and that’s all you need to get into the website, that’s a single type of authentication, aka single-factor authentication. This is not very secure. If your passwords are hacked, then the hackers can get into all of your websites. This could be catastrophic for businesses and organizations that often have confidential and private information in their databases.

The common solution for the problem of hackers learning username and password combinations is the implementation of what’s known as two-factor authentication or Multi-Factor Authentication (MFA). Two-factor authentication means you’re adding an additional layer onto the authentication process. So, what was once a one-factor authentication now is a two-factor authentication. 

Technically, you could go beyond two-factors and have three or more, which is why the term Multi-Factor Authentication is now being used.

What Are the Benefits of Having Cyber Insurance?

We hope you can see why having Multi-Factor Authentication set up is important whether or not you have cyber insurance. But cyber insurance is also important for organizations in whole sizes. Why? 

Well, hacking attacks are only increasing. And even though we all do our best to make sure that they don’t happen, once in a while, there might be something that happens to your organization. Now, if you’re working with us for Managed IT Services, this possibility is greatly lessened.

That said, having cyber insurance is a smart thing to do, and it’s sometimes required for various organizations. If you want to do business with, for example, government entities, they might require it. So, in order to get that cyber insurance, many of insurance are now requiring Multi-Factor Authentication (MFA). Applicants now must show proof that they’re using MFA with their apps and services.

Common MFA Pitfalls Managed IT Can Solve

Many organizations are running on old intranets or using websites that aren’t fully secure. These are common areas where Multi-Factor Authentication should be set up. Also, often, employee benefit plans aren’t secured via two-factor authentication. And something as simple as the company website might also not be using MFA.

With a trusted Managed IT Services provider, such as CDS office technologies, we can do a full security audit to determine what areas need beefing up and where Multi-Factor Authentication can be implemented.

Via Managed IT Services, we can also help determine what type of Multi-Factor Authentication system would be the most appropriate for your organization and your staff. For example, some types of two-factor authentication use cell phone numbers as a way to authenticate. However, this might not work well with an organization where a secure Multi-Factor Authentication app might be a better solution than using cell phone numbers.

Get Started with Multi-Factor Authentication

No matter what the size of your business or organization, having proper cybersecurity measures in place is critical for success. Unfortunately, many organizations just simply don’t have the staff onsite to handle all of their cybersecurity needs. This is why hiring CDS office technologies as your Managed IT Services provider is a good choice. We can provide the additional cybersecurity support that your team needs. And we can help set up systems to enable Multi-Factor Authentication across your organization. To get started with two-factor authentication in Springfield, IL, simply contact us and we can discuss your needs.

CDS Office Technologies is a leading provider of Managed IT Services as well as other technology services for small businesses, large businesses, nonprofit organizations, and government agencies in and around Springfield, IL. If you need help setting up multi-factor authentication, please contact us for a consultation.