Online security of their personal and financial information against scams and data breaches is a persistent worry for consumers, one that financial services providers and other businesses are in a constant race to address.
With 40 million Americans suffering financial losses of $43 billion from online hackers and identity thieves in 2022, digital encryption and other technologies are emerging and evolving to shield consumers and businesses from malevolent incursions into their checking, savings, credit cards, investments, and other accounts.
The COVID-19 pandemic and economic fallout, which forced millions of households and businesses into temporary lockdown, exposed the vulnerabilities of internet security as households took to their personal computers and smartphones to online order takeout and groceries, shop for clothing and electronics, or telecommute.
Andrews Federal Credit Union is among the credit unions offering an extra layer of online security for our online banking platform that many users may not know much about.
What is “two-factor” authentication?
It’s very likely you’ve encountered the newest of these technologies, known as “two-factor” authentication, or “2FA” for short, when you log on to your favorite social media, financial, and commercial services websites.
It combines one of the most prevalent factors for identifying online users – the login/password – with a second layer of digital access protection. These extra “authenticators’’ range from preset questions for which only users may know the answer, like your first pet’s name, to sophisticated biometric tools like fingerprint and retina scanners.
“Two-factor” vs. “Two-Step” authentication
But don’t mistakenly confuse “two-step” authentication with “two-factor” authentication. The key difference between the pair is that “two-step” relies on a single authentication factor applied twice in steps. An example is the prompt for your billing ZIP code when you use your credit card online.
In contrast, “two factor’’ authentication may use a password as one factor in tandem with a second factor, like a security token or fingerprint and facial scans.
Someday, experts say, most users will securely access their digital accounts and services without ever having to use a password.
The use of ‘2FA’ is uneven
In 2021, the carmaker, Dodge, introduced 2FA – a four-digit code in tandem with the keyless fob -- on two powerful versions of the automaker’s popular muscle cars, the Challenger and Charger, to prevent unauthorized drivers from unlocking all the vehicles’ supercharged horsepower. Dodge also offered a 2FA retrofit for its 2015-2021 performance models.
Like Dodge, businesses in many other industries are turning to 2FA to block unauthorized access to corporate and consumer files and accounts, or at least minimize data theft or ransomware attacks. But the pace so far has been slow.
One Microsoft study found that companies and individuals who used more than one factor to identify eligible users averted virtually all the attempted “phishing’’ and other illegal incursions they encountered, 2FA has been relatively slow to catch on.
Applying 2FA to your online accounts
Fortunately, users don’t have to be coders or data-breach experts to activate and calibrate 2FA identity-protection software on their desktop and notebook personal computers and smartphones.
Microsoft, Apple, Facebook, and LinkedIn, among others, provide two-factor identification apps and support among their online security offerings to shield access to their online accounts.
Review the various digital banking and account safety measures that Andrews Federal Credit Union employs. Those services are free to our members.