In today’s digital age, where data breaches and cyber-attacks are becoming increasingly prevalent, ensuring the security of sensitive information has become essential for businesses of all sizes. Cyber Insurance helps protect your business and there are ways to implement better security systems to ensure insurers are more willing to offer your business protection.
One of the most effective tools available is Two-Factor Authentication (2FA). It’s an additional layer of security, providing an extra barrier against cyber criminals and it significantly reduces the risk of unauthorised access to your company’s sensitive data.
So, what is it and why do insurers want us to use it?
Enhanced Security
2FA adds extra security beyond just a username and password. By requesting a second form of verification, such as a temporary code sent to your phone or perhaps generated by an authenticator app, 2FA makes it significantly harder for hackers to gain access to accounts, even if they manage to obtain login credentials through phishing or data breaches.
Mitigation of Password Vulnerabilities
Passwords, no matter how complex, can still be compromised. Employees may inadvertently use weak passwords or reuse passwords across multiple accounts which means only one of those sites need to be hacked to compromise that password. 2FA mitigates these vulnerabilities by adding an additional authentication step, reducing the risk of unauthorised access even if passwords are compromised.
Compliance Requirements
Many industries are subject to regulatory requirements regarding data security and privacy. Implementing 2FA can help companies meet compliance standards such as GDPR and PCI DSS (safety of online payments), which mandate strong authentication measures to protect sensitive data. Failure to comply with these regulations can result in severe financial penalties and damage to a company’s reputation.
Protection of Customer and Employee Data
Companies store a wealth of sensitive information, including customer data, financial records, and intellectual property. A data breach not only exposes this information to unauthorised parties but can also lead to costly legal battles, loss of customer trust, and reputational damage. 2FA acts as a crucial safeguard, helping to prevent unauthorised access and protect valuable data from falling into the wrong hands.
Cost-Effective Security Measure
The cost of implementing 2FA is relatively low compared to the potential financial losses associated with a data breach which can include the costs of forensic investigations, legal fees, regulatory fines, and damage control efforts.
Cyber threats are evolving all the time and having robust security measures in place is more important than ever.
Having 2FA in place not only protects your business but can allow insurers to provide better premiums, enhanced cover or just provide cover in the first place. Should you have queries surrounding this or Cyber Insurance, please don’t hesitate to contact ProAktive.
By Shell Redfern – Account Executive