Neglecting MFA: The Scary Reality of Your Business Risk

IT security is more important than ever. Cyber-attacks and data breaches are a daily occurrence, they just don’t all make headlines. Businesses that fail to take proactive security measures put not only themselves at risk, but their customers too.

One of today’s foundational security measures is multi-factor authentication (MFA). But here’s the scary part: many businesses still aren’t using MFA, which means they’re at risk of some serious consequences.

IN THIS ARTICLE:

MFA Explained 

MFA is a security feature that requires users to provide a combination of two or more authentication factors to gain access to a system or application. This is typically something the user knows (like a password) and something the user has (like a phone or security token). These are used to verify the user’s identity. Unlike solely relying on a password for access, requiring more than one authentication method adds an extra layer of security. If the user’s password is stolen, the second authentication factor helps to prevent unauthorized access to sensitive information and systems.  

Business Consequences of Not Implementing MFA 

MFA is a relatively simple solution that can significantly increase your preventative security posture. In today’s world, it’s only a matter of time before a user’s credentials are compromised. Without a second verification method, that’s all it takes for a bad actor to get into your systems. The fallout of that can be severe.

Here are some examples of what can happen if your business doesn’t use MFA on critical business applications: 

  1. Data Breaches

    Without MFA, hackers can easily gain access to business accounts or systems by stealing or guessing a user’s password. No one’s password policy is good enough to prevent this. Once inside, your sensitive data including customer information, intellectual property, and financial records are at risk. 

  2. Financial Losses

    Along the same lines, without MFA, stolen credentials can give bad actors all the access they need to transfer funds, make unauthorized purchases, or steal sensitive financial information. This can result in significant financial losses, legal fees, and regulatory fines. 

  3. Reputational Damage

    A breach can damage a business’s reputation quickly which is difficult to recover from. Customers may lose trust in your business and look elsewhere. Depending on the severity of the breach, it can cause prospects to think twice about choosing your company. Reputations take a long time to build, can be damaged in an instant, and may take years to recover. 

  4. Compliance Violations

    If your business has cyber-liability insurance (something all businesses should have these days), MFA is a requirement. Failing to adhere to this could risk your insurance coverage. Additionally, many industries, such as healthcare and finance, are subject to strict compliance regulations that require the use of MFA. Failing to comply with these regulations can result in legal penalties, fines, and even license revocation.

  5. Operational Disruption

    The day-to-day impact of a breach resulting from the failure to implement MFA can be damaging on its own. Bad actors who gain access to your business systems can disrupt your operations or even shut down your systems. This results in downtime, lost productivity, lost revenue, and negative customer experiences.

The scary truth is businesses that avoid implementing multi-factor authentication (MFA) put themselves at significant risk for avoidable incidents. Cybercriminals are always looking for easy targets, and the absence of MFA makes your business just that. 

It’s true that implementing MFA won’t solve all security problems; it’s just one part of a robust security posture. But failing to take this foundational prevention step can lead to catastrophic events. The consequences for your business can range from uncomfortable to completely disastrous. 

It’s crucial that businesses take proactive measures to protect themselves and their customers. Implementing MFA on your key business applications is a simple yet effective way to increase security and mitigate risks. As the old saying goes, “an ounce of prevention is worth a pound of cure.”

Are you a current client of CIO Solutions? Talk to your vCIO to continue the conversation!

Not a client yet, but wondering how to improve your IT security? Let’s talk!