What is 2FA (Two-Factor Authentication), and how can you implement it?

The most popular form of 2FA is when a customer logs in to their account using a password, after which they receive a one-time pin (OTP) to confirm their identity. An OTP or 2FA PIN is a code that is automatically generated and sent, usually to a mobile device, to allow a single login session or transaction.

Here is an example of a 2FA process where customers can choose the channel they want to use for authentication:

The main benefit of 2FA is that it provides an extra layer of security, making it harder for attackers to access accounts. Simply adding a layer of 2FA to logins and transaction processes can alleviate risks of stolen data. According to Verizon, 80% of cyber breaches could be prevented by 2FA.

As a method of multi-factor authentication (MFA), it helps ensure online accounts and transactions are safe from fraudsters’ many tactics, including email phishing, smishing, and SIM swapping. Google reported that 100% of automated bots, 99% of phishing attacks, and 66% of targeted attacks were blocked by two-factor authentication.

Here is an overview of the benefits of 2FA in more detail:

It’s not easy for a hacker to bypass 2FA, making it an effective security tool against fraud. Hackers would have to know lots of information to gain access and duplicate information, not just one password.

Turning on two-factor authentication is an easy way to stay protected. Even the simplest form of 2FA puts a practically impenetrable wall between hackers and your customers’ personal information.

Taking these steps to protect your customers’ accounts will offer them the highest level of security and the best UX, creating happy and secure customers all around.

The goal of 2FA is to secure personal information while still providing a smooth user experience. In the case of push notifications, there’s no need to enter a PIN to confirm the authentication. A simple click is all that’s required.

Companies that embrace new technology are likely to experience better productivity and flexibility. Customers can sign up for services faster and more securely than before.

Today, businesses use 2FA so their employees can securely access corporate applications, data, documents, and back-office systems from virtually any location without putting company data at risk.

Implementing 2FA can help reduce the lengthy and costly password reset calls and can act as a secure way for customers to sort these issues out themselves.

Reducing customer interactions with call centers, not only strengthens security but also improves UX. Then, as a massive bonus, operational overheads that are associated with security controls are reduced.

Having stronger security measures for ecommerce sites increases consumers’ trust. Consumers are more likely to trust other consumers on sites like eBay or PayPal knowing that everyone on the system must pass through the same tight security as they did. Building a large circle of trust within the community—especially with services like eBay and Etsy—is essential to these services’ long-term success.

It is common and crucial for banks and financial institutions to use 2FA services. From requiring a PIN to access your bank card, to a TOTP (time-based one-time password) to finalize money transfers, 2FA keeps customers’ banking information safe and secure.

Related customer story:

Online retailers often use 2FA during the login process. When credit card information can be saved and stored on their accounts, adding an extra layer of protection is essential for customers to feel safe buying from their sites.

Healthcare organizations are responsible for securing patient data and information. Using 2FA, they can reassure their patients that only they can access their medical records. 2FA is also required for doctors to access patient files.

Governments have had to shift to using online and cloud-based platforms for people to access their government accounts. This can include anything from student loan accounts, retirement savings, applications for driver’s licenses, and other government services.

Using 2FA offers the safest and most user-friendly experience. People can now securely access many government documents and records online without hassle. This makes using government sites easier than ever.

With almost 100% mobile phone ownership in most major markets, OTP (PIN codes) sent to a mobile device is the most common method of 2FA implementation.

However, it is crucial to choose the best channel for sending the PIN, depending on the individual use case and the preferences of each customer.

For example, some people may live or work in places with unreliable mobile or data signals. So, configuring a failover channel is key to ensuring that codes are delivered securely and before they expire in cases where time-based one-time PINs (TOTPs) are used.

The most popular methods of 2FA include:

You should ensure 2FA is used as effectively and efficiently as possible to ensure your customers do not get inconvenienced and associate increased security with increased hassle.

An effective authentication solution should be able to automatically select the best primary and failover channel and trigger delivery of the OTP on the second channel when the first is not successful. This ensures that 2FA PIN codes are always delivered.

This is where a flexible omnichannel authentication solution becomes crucial, as it reduces the overall overhead for the organization by ensuring that human intervention is only required when necessary.

If a person is impatient to receive an OTP they might click on the ‘send a new code’ option. Every time a person does this it translates to additional costs for your business.

An effective 2FA re-send strategy incorporates a set of rules for requesting OTPs that balances the security of the customer with the costs for the business.

For example, how often can a user request a new verification PIN? Will all PINs be sent via the same channel? Can the same PIN be reused? All these questions are covered by an effective 2FA resend strategy.

The benefits of a 2FA resend strategy are clear:

When monitoring your OTP delivery status, it is worth separating the data by channel. Measuring conversion rates across channels will give you insights into how your customers are using your 2FA service and how you can fine-tune your strategy to provide a better CX and reduce costs.

With conversion tracking, you can measure how many PINS are sent versus how many are used. This allows you to understand how your customers are using your 2FA service and how convenient it is for them. This additional insight can help you optimize your 2FA service, and make it easier to use.

Besides OTP code delivery, other important components of mobile 2FA security are performed silently in the background, strengthening the authentication process.

For example, Number Lookup is a great way to reduce costs and ensure a customer receives their PIN. By checking the status of a person’s phone number, you can ensure your customers receive their PIN on the channel that best suits them.

For OTT businesses, if a customer enters the wrong phone number, they can never get the SMS with the PIN number necessary to complete the installation. They could lose an excellent way to stay in touch with their friends, while the app makers lose a potential user. Bearing in mind the intense competition in the messaging space, this is likely to be the last thing app makers want.

By offering detailed insight into mobile networks to check numbers for validity, number lookup is extremely beneficial to OTT providers. It can provide insight on if a number is nonexistent, unused or landline phone and offers customers the chance to re-enter their phone number if it is incorrect.

Other security & fraud prevention services we recommend with 2FA:

At Infobip, we help businesses from global brands to independent retailers secure their customers and transactions. Our solution, Infobip Authenticate, is unique in the market as it incorporates multiple channels and analyses various factors, including cost and popularity, to determine the best channel for each OTP.

Currently available channels for optimized OTP delivery are SMS, RCS, WhatsApp, Voice, Viber, Zalo and KakaoTalk. This ensures that your OTPs are always delivered promptly and reliably in every destination.

Crucially, the solution is designed to blend seamlessly into existing business processes so that your customers benefit from an easy and consistent experience that reduces friction all the way from account registration to purchase.

Just some of the brands that trust Infobip to help with their authentication challenges include:

To conclude: by implementing quality 2FA solutions, you are signaling to customers and users that you take security seriously. This is increasingly important as we trust more of our digital lives to online services.

This article was last updated in October 2024 to include more tips on 2FA implementation.