Identity authentication is the process of verifying that a user really is who they claim to be.
- Identity = the claim: “I am John Smith” (usually a username or email address).
- Authentication = the proof: “Here’s how I can prove I am John Smith.”
Which types of authentication do businesses use?
- Single-Factor Authentication (SFA): Uses just one factor (usually a password). Example: sign in with username and password only.
- Two-Factor Authentication (2FA). Uses exactly two factors. Example: password + one-time code (text message or authenticator app).
- Multi-Factor Authentication (MFA). Uses two or more factors. Example: password + phone code + fingerprint.
What are the three common factors for authentication?
- Something you know → password, PIN, security questions.
- Something you have → smartphone, security token, smart card.
- Something you are → fingerprint, face, iris scan.
Do companies need to use multi-factor authentication?
- Single-Factor Authentication (SFA) can be safe, but it heavily depends on user discipline
- Multi-Factor Authentication (MFA) is the higher standard—it adds an extra layer of protection and is recommended wherever sensitive data is involved (finance, personal data, contracts).
In short:
- SFA = most convenient, but highly dependent on user behavior.
- MFA = less convenient, but far more secure.
What are the risks if your digital identity is stolen or misused?
- Financial losses (both immediate and long-term).
- Exposure of sensitive documents and data (business and personal).
- Reputation damage (for example, spam or scams sent from your social media accounts).
- Difficult account recovery — attackers may change your recovery email or phone number.
- With cryptocurrencies, funds are often lost permanently.