Protecting your business from fraud with multi-factor authentication

May 2025

Cybercrime and digital fraud are pervasive threats to businesses of all sizes. One of the most effective defenses against these threats is multi-factor authentication (MFA).

What is multi-factor authentication?

MFA is an electronic identity verification method that requires users to provide two or more factors to prove their identity before gaining access to an account, network, or system.

These factors typically include:

Answering a security question, like typing a password.
Receiving a text or phone call to your mobile device.
Using your fingerprint or facial recognition (biometric) to confirm your identity.

Benefits of multi-factor authentication

Enhanced security
MFA has multiple verification steps, so extra authentication is required to access the account, even if a password is stolen or compromised.

Compliance and customer trust
Implementing MFA helps businesses meet data security and compliance requirements. It also strengthens customer trust by demonstrating a commitment to protecting sensitive data.

User convenience
Modern MFA solutions, such as biometric verification, provide secure access without adding difficulty to the login process.

Primary MFA Methods

MFA Method	Security Level	Pros	Cons
SMS Verification	Less secure than other methods	Easy to implement and widely available No need for additional hardware	Susceptible to SIM swapping attacks Dependent on mobile network availability
Authenticator Apps	More secure than SMS	Easy to use Doesn't rely on a cellular network Only requires internet access for setup	User must have a smartphone and install/manage app Potential risk if the device is lost without backup codes
Biometric Verification	Highly secure	Difficult to replicate Convenient and fast authentication	Requires compatible hardware Potential privacy concerns re: biometric data storage
Hardware Tokens	Highly secure	Generate unique authentication codes Not susceptible to phishing attacks	Can be lost or damaged Additional costs for purchasing/maintaining hardware

Implementing MFA for your business

Choose the right MFA solution for your business’s needs

Assess your security risks, regulatory requirements, and data sensitivity. Select the MFA method that meets these needs, integrates with your IT infrastructure, and balances security, usability, and cost.

Train and educate

Provide training sessions to educate staff on the importance of MFA, how to use your solution, and how to recognize phishing and social engineering tactics that could threaten security measures.

Test and rollout

Before deployment, test your MFA solution on a pilot user group to identify and resolve issues. Gradually roll it out across the organization while monitoring adoption and feedback.

Tips to maximize your MFA solution

Stay on top of your policies and settings: Security threats evolve, so periodically review and update your MFA policies and settings to ensure they remain effective.
Monitor and respond to alerts: Set up alerts for unusual login activity or failed authentication attempts and respond promptly to potential security threats.
Implement backup and recovery measures: Establish backup options, such as backup codes or alternative authentication methods, to prevent lockouts in the event of lost devices or hardware failures.

MFA: A powerful tool in the fight against fraud.

With multiple layers of security, MFA helps protect your business from data breaches and financial losses by reducing the risk of unauthorized access. Use the information above to implement MFA effectively and help boost the security of your business systems and accounts.

We’re committed to arming you with the latest information on cybercrime and payments fraud. For information about KeyBank’s Core Fraud Solutions, contact your Payments Advisor or Relationship Manager or visit key.com/cybersecurity.