Two Factor Authentication Protects Your Identity

Two factor authentication means that an additional procedure for authenticating your identity is put into motion before your information can be accessed. For instance, when you call your bank in order to obtain you balance and you are asked for a PIN code or personal information, such as your mother's maiden name, two factor authentication is being put into play.

Rather than using only a single form of authentication, two-factor authentication requires the addition of a second factor, meaning the addition of something the user has or something the user is. For example, every time a bank customer visits their local ATM machine, the first authentication factor is the physical ATM card the customer slides into the machine and the second factor is the PIN they enter. Without both pieces of input, authentication cannot take place. This scenario illustrates the basic parts of most two factor authentication processes that involve the "something you have" plus "something you know" concept.

When you consider your personal finances, think about patronizing banks and businesses that utilize two factor authentication. Identity theft is a major hassle and using a two factor authentication is a good way to ensure your banking and financial transactions are secure. Identity theft and fraud are at an all time high. Attackers are breaking into online bank accounts and transferring money to fraudulent accounts. An attacker just needs to know your user name and password, which they get through password phishing and other schemes, to login to your online bank account. If two factor authentication is used, the attacker would need to know your username and password and have physical possession of a security device to login as you. Two factor authentication is really the only way to protect you from online banking fraud.  Using two factor authentication means enhanced security for you and your family.

There are many forms of two factor authentication available for online banking. One of the most common is a security token. Recently, banks have been uses sms authentication and other forms of phone authentication because they are easy for people to use. With SMS authentication, when you log into your online bank account, a one-time-password is sent in a sms text message your cell phone. You have to enter your username/password and the password from your sms message to login. In order to use sms authentication, you must have a cell phone with an sms text messaging plan.