Why Multi-Factor Authentication (MFA) is Essential for Your Business Security

29 Apr 2025, by Micron21

Cyberattacks are becoming more sophisticated everyday, and bad actors are continuously finding ways to compromise accounts using stolen or guessed credentials.  With such threats on the rise, relying solely on a username and password is no longer enough to protect your business.  This is where Multi-Factor Authentication (MFA) can add a critical layer of defence.

MFA, often referred to as two-factor authentication (2FA), is not just a trend - it's a necessity for securing sensitive information and assets.  This article explains why MFA is vital, how it works, the different forms available, and importantly how to get started in implementing it straight away.

What is Multi-Factor Authentication and Why Should You Use It?

At its core, MFA is designed to enhance security by requiring users to verify their identity through multiple authentication methods.  Traditionally, accessing an account only required a username and password, but in today’s threat landscape, this is inadequate.  Cybercriminals can easily obtain passwords through phishing, brute force attacks, or data breaches.

MFA introduces additional layers of protection that make it significantly harder for attackers to gain access.  For example, even if a hacker manages to steal your password, MFA ensures they can't get in without a second form of authentication, such as a code sent to your phone.

How MFA Works

MFA typically involves verifying a combination of:

1. Something You Know - This could be a password or PIN.
2. Something You Have - For instance, a smartphone or security token.
3. Something You Are - Using biometric data like fingerprints or facial recognition.

By requiring at least two of these factors, MFA greatly increases the likelihood that the person attempting to log in is genuinely authorised.

Balancing Security and Usability

While more authentication layers create stronger security, they can also add friction for users.  Modern MFA solutions aim to balance security with usability, ensuring the process remains quick and efficient without sacrificing protection.

For most implementations, 2FA strikes this balance well.  For example, logging in typically involves entering a password and then inputting a one-time code sent to your phone or generated through an authenticator app.

Real-World Consequences of Not Using MFA

A striking example of the importance of MFA came to light with the Medicare breach.  Stolen user credentials were exploited to gain unauthorised access, and it was later revealed that users did not have two-factor authentication enabled. This breach could potentially have been prevented with the additional protection provided by MFA.

That being said, even multi-factor protection can't protect you from every threat.  As reported recently by ABC News in relation to user credentials for the four major banks being stolen, James O'Reilly (founder of Australian information security company Dvuln) stated that "even multi-factor authentication (MFA) isn't a total shield".  "With malware gangs sometimes selling cookies or access tokens alongside the stolen passwords" ... "a lot of the time you can actually bypass their MFA".   It's for these reasons that MFA should just be one of many different layers of security that you use to protect your systems and data.

Exploring Different Forms of MFA

There are several types of MFA available, each offering unique advantages and downsides. 

Email-Based Authentication:

• How It Works: A one-time code is sent to the user’s registered email address.
• Pros: Simple to set up and widely accessible.
• Cons:  If the user's email account is compromised, it can render this method ineffective.

SMS Authentication:

• How It Works: A one-time passcode is sent to the user’s phone via SMS.
• Pros: Easy to implement and use.
• Cons:
  • Vulnerable to unauthorised phone number porting, where attackers hijack a phone number by transferring it to another SIM card.
  • Susceptible to other forms of attack, such as SMS interception.
  • Due to these risks, SMS is considered the least secure form of MFA.

Authenticator Apps:

• How It Works: Apps like Google Authenticator, Microsoft Authenticator, and FortiToken generate time-sensitive codes for login.
• Pros:
  • Offline functionality (codes can be generated without an internet connection).
  • Higher security compared to SMS, as codes are only accessible on the linked device.
• Cons:
  • Requires users to set up the app and ensure access to their device at all times.

Physical Security Keys:

• How It Works: Devices like YubiKey act as a physical key that needs to be plugged in or tapped on a device to authenticate.
• Pros:
  • Extremely secure, as they cannot be intercepted remotely.
  • Simple to use for frequent logins.
• Cons:
  • Physical keys can be lost or damaged, sometimes requiring backup methods.

How to Configure MFA for Your Business

It doesn’t take an extensive IT overhaul to implement MFA - here's how you can enable it on some common platforms:

For Shared Web Hosting (cPanel)

1. Log in to your cPanel dashboard.
2. Navigate to “Two-Factor Authentication” in the Security section.
3. Scan the provided QR code using an authenticator app.
4. Enter the generated code to confirm and enable 2FA.

For mCloud

With our mCloud platform, MFA is enabled by default to ensure the security for all our users. Detailed instructions on how to configure this on your devices is sent through when you first sign up.

On Other Platforms

Platforms like Google Workspace, Microsoft 365, and Amazon Web Services (AWS) all offer built-in MFA options in their settings.  The process for each is usually fairly straight-forward, each requiring that you follow a simple step-by-step activation process often involving QR codes or SMS for initial setup.

Why You Should Act Now

With cyberattacks growing in complexity and frequency, relying on simple passwords is no longer enough to protect your business.  MFA solutions offer a powerful yet accessible way to prevent unauthorised access, protecting sensitive data and systems from catastrophic breaches.

If your organisation hasn’t yet adopted MFA, now is the time to act.  Consider the risks and consequences highlighted by cases like the Medicare breach and ensure that your systems are protected by multiple layers of authentication.

For businesses looking for a secure, scalable platform to host applications, Micron21’s mCloud platform offers seamless integration with MFA for enhanced security.  Explore options tailored to your needs and enjoy unparalleled protection backed by our Tier IV data centre.

If you need help implementing MFAs, feel free to reach out to us at sales@micron21.com or by calling 1300 769 972 and we'd be more than happy to help.