Two Factor Authentication (2FA) is a term used for the process of requiring a user to verify their identity in two unique ways to grant access to systems.
Multi-factor authentication technology is not new – it was conceived back in 1984. With the advent of online banking and financial management, the loss of data can have dire consequences today more than ever, and so two-factor authentication protects against the threats of hacking and data theft. With two factor authentication for finance, the account cannot be accessed without knowing the method used as the second factor, and also having access to the second factor such as dynamically generated one-time password, SMS authentication, or biological token.
There are different ways to implement two factor authentications for online banking, and they all increase the security of user accounts, including SMS authentication.