What is Multi-Factor Authentication (MFA)?

Multi-factor Authentication (MFA) is a security process where users are required to go through various authentication steps to be provided access to a system or application or to complete a transaction. 

As opposed to other identity verification practices, MFA adds a second layer of security by requiring an additional piece of information. 

This, of course, complicates access for fraudsters, even if they have the password.

SaaS companies should seriously consider implementing MFA when handling sensitive information, as this increases security and privacy. 

MFA focuses on specific data categories when verifying identity:

• Knowledge factors: Information the user knows, such as a password or PIN.

• Possession factors: Items the user has, like a smartphone, hardware token, or authenticator app.

• Inherence factors: Biometric traits, including fingerprints, facial recognition, or voice patterns.

• Location or contextual factors: Signals such as geographic location, IP address, or network reputation.

Combining factors in the verification process will increase security.

MFA has the following benefits: 

• Stronger account protection: Compromised passwords alone are insufficient for access.

• Reduced breach risk: Microsoft reports that MFA can block over 99% of account compromise attacks.

• Improved access control: MFA enforces consistent, policy-driven authentication across users and systems.

• Lower business impact: Prevents financial loss, downtime, and reputational damage caused by breaches.

• Reduced password reliance: Limits exposure to password reuse and credential stuffing attacks.
  

While MFA can introduce minor friction and implementation costs, these trade-offs are generally outweighed by the security gains for most organizations.

Passwords are still the first authentication step in many MFA workflows. Weak or recycled passwords increase the risk of being hacked and social engineering attacks, especially in the case of MFA fatigue, in which users are pressured into approving login requests by cybercriminals.

A strong, unique password reduces the chance of being compromised in the first place and strengthens the effectiveness of the MFA. 

In a corporate setting, MFA works like this:

1. The user enters their username and password.
2. The system takes into account the context as far as the device, the location, and the behavior are concerned.
3. The user is asked to provide a second factor of authentication, such as a code from an authenticator app, a biometric scan, or a hardware token. 
4. Access is granted only after successful verification.

SaaS organizations also need to think about adding an additional authentication method to the list in case the primary device gets compromised or is otherwise unavailable for use.

MFA systems often utilize various methods to identify new or unknown devices, including:

• device fingerprinting
• IP analysis
• location history
• activity monitoring. 

It is precisely these methods that raise an alarm when a new location or unusual device is used for the login attempt. Such practices are useful for remote and cloud applications where there is a high amount of device diversity.

Adaptive MFA depends on risk assessments to establish greater or lower authentication levels. There are lots of signals that can trigger higher levels of verification such as:

• unusual locations
• impossible movements
• unusual behavior or networks
• suspicious networks. 

Low-risk situations may proceed with minimal friction, while high-risk situations require more factors or are blocked. This practice gives better security as well as eliminates unnecessary MFA requests for normal users.

Yes. The strength of MFA depends on the criteria used. 

• SMS-based codes provide the lowest level of protection and are vulnerable to SIM swapping.
• authenticator apps and hardware tokens provide higher levels of assurance
• biometric factors (employed by 3D secure) provide the highest level of security as long as they are properly implemented. 

SaaS organizations should consider the strength of MFA according to the sensitivity of the data or the protected system, balancing the security requirements with the user experience.