With cyber claims continuing to skyrocket, in addition to insurers raising rates, insurers are also tightening underwriting. One of the critical questions now being ask is if the firm has multifactor authentication (MFA). We know of at least one claim where an insurer is denying coverage because the firm did not have MFA but answered on their application that they did.
1. What is multifactor authentication?
MFA requires the use of two or more authentication factors to verify a user’s identity. MFA provides greater assurance that users are who they say they are and helps keep information and systems safe, even if one set of credentials (such as a username and password) has been compromised. Banks and insurance companies are also implementing this additional layer of security.
2. How does MFA work?
MFA verifies a user’s identity prior to granting access using authentication factors. For example, when a user logs in to an organization’s network, the first authentication factor may be the user’s standard username and password. The second factor may include a one-time passcode sent to the user’s smartphone.
3. Why MFA?
Cybercrime is a growing threat, and organizations need to take precautions to secure their information and systems. Passwords are not always enough to prevent fraudulent sign-in attempts and breaches. MFA can help stop cyberattacks in their tracks, blocking 99.9% of account-compromising attacks.
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Lee Norcross, MBA, CPCU
Managing Director, CEO
(616) 940-1101 Ext. 7080