Cyberattacks against small and medium-sized enterprises (SMEs) are on the rise — from ransomware to Distributed Denial of Service (DDoS). Leveraged credentials, most often passwords, cause 61% of data breaches.
Nearly half of all cyberattacks target SMEs who are less equipped to recover from damages.
Why don’t cybercriminals limit their nefarious activity to organizations with large bank accounts? They have strategically determined SMEs are less likely to invest in security best practices than large enterprises.
Sadly, the consequences of these data breaches can be devastating. On average, 60% of SME breach victims file for bankruptcy within six months of an incident. The good news is SMEs can avoid nearly 100% of breaches by taking one simple action: implementing multi-factor authentication (MFA).
Why Aren’t More SMEs Using Multi-Factor Authentication?
According to a 2021 study, organizations that use MFA are 99.9% less likely to experience a breach than those that do not.
Yet, despite having awareness of cybersecurity risks, an estimated 67% of business decision-makers don’t use MFA for any of their login points.
Why aren’t more SMEs using multi-factor authentication? Is the resistance to MFA one of misunderstanding, misinformation, or the perception of inconvenience? And how can it be overcome? Let’s explore MFA’s benefits, challenges, and common misconceptions around SMEs using multi-factor authentication — but first, a primer on MFA:
What Is MFA?
MFA is a method to protect an access transaction by utilizing multiple (often two) factors to verify a user’s identity. MFA, sometimes referred to as two-factor authentication (2FA), goes beyond vulnerable password authentication by requiring two or three forms of identity:
- Something you are: biometric data like facial recognition, fingerprint, retinal imprint, or even speech and typing patterns.
- Something you know: passwords or facts about your life or family history.
- Something you have: a device in your possession, like a phone or a security key.
Though the technology has been around for decades, biometric data recognition was mostly relegated to sci-fi movies until recently.
However, technologies like facial recognition and fingerprint scanning are now mainstream thanks to organizations embedding them into their products. A recent survey of 1,000 Americans found that 70% of them find biometrics easier to use than traditional passphrases.
How Does MFA Work?
End users may see MFA as slightly inconvenient as it involves a few extra steps. But the process itself is relatively straightforward:
- The user logs in with their password (something they know).
- The user is prompted to satisfy a second factor:
Once the user’s identity has been verified by the organization’s chosen secondary and/or tertiary factor, the user is granted admission to the network.
Benefits and Challenges of Using MFA
Implementing MFA has many benefits, but here are three:
- MFA keeps accounts secure even if passwords have been compromised.
- MFA provides peace of mind for stressed-out cybersecurity teams.
- MFA lays the foundation for running a Zero Trust security framework, which maintains trust without maximum verification and introduces security vulnerabilities.
In addition, MFA is one of the easiest security measures admins can take.
MFA Challenges and Solutions
Now, let’s dig into why more SMEs aren’t using multi-factor authentication. Identity management is the only technology that requires users and admins to balance efficiency, convenience, and security all at once — a challenge, but a surmountable one.
Here are the three challenges most often cited by SMEs resisting MFA:
- MFA could be time-consuming and slow productivity.
- MFA could negatively impact user experience (UX).
- MFA could be expensive for small businesses to manage.
When it comes to choosing between speed and security, speed often wins. Fortunately, new innovations in UX design are delivering a seamless user experience with no compromise. Implemented correctly, MFA can increase IT security without adding complexity or slowing productivity for the end user.
Managed MFA solutions can support multiple factors depending on the applications, devices, and systems they protect. Integrated into a cloud directory platform like JumpCloud, managed MFA solutions reduce the complexity of protecting a single identity while securely connecting the user to multiple IT resources. Less complexity leads to higher user adoption rates and a greatly reduced attack surface.
Employees may continue to lose their smartphones on occasion, but this problem can be solved with an authentication app like JumpCloud Protect™. JumpCloud Protect will: (1) temporarily relax MFA requirements while the user sets up their new phone; or (2) shift MFA requirements to a non-smartphone-based method like a hardware-based key or fingerprint scanner.
Finally, MFA costs are scalable for SMEs, with simplified à la carte and bundled pricing plans that deliver what businesses of all sizes need, when they need it. (Note: Cloud MFA services are free with all bundled JumpCloud packages.)
The ROI of Multi-Factor Authentication for SMEs
With so much on the line for SMEs, whose data is frequently targeted by hackers, MFA adoption has never been more critical. MFA helps keep accounts secure even if passwords have been compromised.
According to Aberdeen Research, small businesses of less than 500 employees with up to $50M in annual revenue experienced downtimes costs of up to $8,600 per hour in 2016. All things considered, a solid Zero Trust initiative like MFA is a drop in the bucket.
Interested in learning more about JumpCloud and how to achieve more robust security practices? Open a JumpCloud Free account today.
JumpCloud Free grants new admins 10 systems and 10 users free to help evaluate with access to the complete platform. Once you’ve created your organization, you also receive 10 days of Premium 24×7 in-app chat support to help you with any questions or issues.
About Version 2 Limited
Version 2 Limited is one of the most dynamic IT companies in Asia. The company develops and distributes IT products for Internet and IP-based networks, including communication systems, Internet software, security, network, and media products. Through an extensive network of channels, point of sales, resellers, and partnership companies, Version 2 Limited offers quality products and services which are highly acclaimed in the market. Its customers cover a wide spectrum which include Global 1000 enterprises, regional listed companies, public utilities, Government, a vast number of successful SMEs, and consumers in various Asian cities.
At JumpCloud, our mission is to build a world-class cloud directory. Not just the evolution of Active Directory to the cloud, but a reinvention of how modern IT teams get work done. The JumpCloud Directory Platform is a directory for your users, their IT resources, your fleet of devices, and the secure connections between them with full control, security, and visibility.