Why multi-factor authentication is vital for your business

Balancing IT security on top of all the usual challenges of running a SME has always been a difficult path to tread.

While every SME wants to keep their data secure, computer security measures can often add complexity when you need to access information quickly.

These difficulties have led to companies forgoing security measures to keep things simple. As cyberattacks levels soar across the globe, that's a risky strategy in 2021.

The new updated Privacy Act 2020 is taking personal information safety seriously. Businesses risk being fined without adequate data security and protection, and the added consequences of failing customer trust can be devastating.

Fortunately for businesses, it has become much easier in recent years to set up authentication processes and ward off hackers.

Multi-factor authentication, or MFA, has become an essential tool for large and small businesses worldwide. MFA helps protect business data by adding an extra layer of security, in addition to passwords.

You may already be familiar with the concept, as many platforms ask for six-digit codes, sent to your mobile phone, after you have input your password.

Multi-factor authentication is poised to become an integral part of SMEs' cyber defenses. Australia has already made MFA mandatory for anyone using software to interact with their tax authority.

Managing director for Xero New Zealand and Pacific Islands, Craig Hudson says, "we understand MFA adds time when you're logging in but the unfortunate reality is, this is a necessary security step in today's world that's plagued by cybercriminals doing everything they can to get hold of your data."

In New Zealand, Xero has offered two-step authorisation (2SA) for years to protect customers' sensitive data. MFA is a more sophisticated offering and is increasingly viewed as the standard for web-based applications. It was announced today that MFA will become mandatory for all Xero customers.

Here are three reasons why multi-factor authentication technology is an essential step towards protecting your business data.

It's easier than ever

The user experience with multi-factor authentication has been cumbersome in the past. Users were once required to have peripheral devices to receive sign-in codes, making the login process difficult and time-consuming.

Times have changed, however. Companies and individuals can now use slick smartphone apps to receive sign-in codes, streamlining the two-step process and making it easier for people to sign-in securely, wherever they are.

With a growing ease of use, MFA is supported across a host of web platforms, from online banking to social media and communication apps.

New software tools

"Out of the box" tools have made it simple to integrate multi-factor authentication into SMEs' computer systems.

Companies can seamlessly introduce multi-factor authentication for any sign-in that requires a password.

Two-step authentication is easy to set up, even for those of us who aren't tech-savvy.

Authenticator apps, designed to receive codes from other software platforms, plug into other software systems.

Xero is launching its own authenticator app to keep logins to the accounting platform secure, and provides a really simple, streamlined experience for its customers with notifications right within their Xero account.

There are alternatives as well such as Google, Windows, and Authy who all offer third-party authenticator smartphone apps to help companies boost protection across different platforms.

A cost-effective option

While it may have been expensive to oversee IT security in the past, multi-factor authentication has lightened the load for small businesses.

The extra layer of security means companies need to spend less time and resources on IT, freeing businesses up to do what they are best at — growing and serving customers.

"Security has become cheaper and more accessible for small businesses," says Hudson.

"Cyber security has become one of the biggest challenges facing SMEs today, but these easy to implement tools can help increase protection. MFA can reduce risks to businesses across the country."

Why is data security so important, post-Covid?

With more small businesses setting up online, and more people working from home, there has been a rise in cyber attacks against small companies since the pandemic.

Nearly half of companies have experienced a cyber threat as more people work online. About 28 per cent of cyber attacks are targeted at small businesses.

Peter Bailey, general manager at Aura Information Security, says multi-factor authentication is an effective shield against cybercriminals.

"We now see a large number of cyber attacks, with hackers gaining access to databases and stealing usernames and passwords. But if companies have multi-factor authentication in place, the hacker only has one part of the information they need."

Bailey expects MFA to become a standard part of sign-in processes.

"MFA is becoming a part of our daily lives, and is being encouraged on platforms such as Gmail and Facebook. It can be very easy for businesses to set up."

Xero's Hudson says it's vital that businesses start using MFA as soon as possible.

"It has become easier than ever for businesses to get MFA set up, wherever you might need to enter a password. Seamless apps like Xero Verify will guide you through the process. The more secure your business is, the odds of a hack are hugely reduced. We want every business to be conscious of this."

For more information about multi-factor authentication with Xero visit: https://www.xero.com/nz/campaigns/multi-factor-authentication/.

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