The Challenges and Benefits of Multi-Factor Authentication in the Financial Sector (Part Two of Two)

As hackers become more sophisticated, it is incumbent upon fund managers to find ways to prevent cyber breaches and protect their investors’ accounts and information. A crucial way to protect against breaches that involve stolen credentials or account compromise is the use of more than one factor to establish identity online – multi-factor authentication (MFA). This second article in our two-part series explores innovations in MFA, including those from the Fast Identity Online Alliance; the expectations of global regulators; resources and guidance for best practices; and how fund managers can economically implement an MFA system. The first article discussed the MFA landscape for the financial sector; strategies for ensuring both security and user friendliness; challenges that certain factors present; and the means to overcome those challenges. For more on cybersecurity issues facing investment managers, see our two-part series “Cyber Crisis Communication Plans: What Works and What Fund Managers Should Avoid”: Part One (Aug. 24, 2017); and Part Two (Sep. 7, 2017).

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