Whilst our main business is obviously helping our SME clients to find and raise finance, we also like to provide additional information. We hope that it may be helpful to SME owners/managers in running their business. Here is an example.
We are all becoming increasingly aware of the urgent need in this digital world to introduce additional layers of security. Even before the introduction of the latest AI technology, protecting one’s data against hacking and scams was becoming increasingly difficult.
Today, systems generally referred to as ‘Two Factor Authentication’ (2FA) provide the most up-to-date means of protection for the SME user. In simple terms 2FA incorporates ‘SMS authentication’, which is a well-established, widely adopted and effective method for adding an extra layer of protection to various types of businesses, including mobile apps and media accounts. SMS Authentication has, however, been superseded in many cases by more up to date Authentication Apps and/or hardware devises (often supplied by the Banks). The following is an extract from an article published by SME News that throws light on the problem and offers some advice that we think you will find useful in protecting your business data.
SMS Authentication; What is it?
SMS authentication, commonly known as ‘One-time Password’ (OTP) or ‘Two-factor authentication’ (2FA), enables a specific group of people within a business/organisation to verify their identity by receiving a code via a text message. It serves as a secondary authentication step before granting access to a system, application or Network. This represents an important step to enhancing a business’s security. Given the increasing number of cyberattacks targeting small businesses, implementing 2FA is a straightforward yet vital preventive measure.
How does SMS authentication work?
SMS authentication represents one of the simplest and most effective methods for safeguarding business data. Its operational principle is straightforward. It works by sending a text message that contains a unique code. This remains valid for a predetermined period. The Server then matches the sent code with the application or web site that the user is trying to access. This then completes the verification process.
Its simplicity has led to its widespread adoption across various businesses. Users don’t need a special software or device to use the two-factor authentication. SMS authentication only requires at least a mobile phone. The fact that most people carry their phones almost everywhere they go makes the method hassle-free and convenient. The benefit is that it boosts business security, thereby making fraudulent activity much more difficult.
It is more secure than passwords alone.
Passwords can be vulnerable due to user forgetfulness or reuse across various accounts. It can also be due to improper storage methods. For example, writing them down on paper, resulting in password theft. SMS authentication reduces the dependency on passwords. This makes it more challenging for malicious individuals to steal data or compromise business accounts.
Businesses routinely create and manage numerous accounts, each requiring its own passwords. SMS authentication eliminates the need to remember multiple passwords by sending a unique code whenever someone attempts to access a specific account or information. With the code delivered directly to the phone, verifying the identities of those attempting to log in becomes a straightforward process.
Incorporating 2FA into your company procedures is of utmost importance, especially in light of the rising cases of cyberattacks. This authentication method can make a significant difference in your business by bolstering security for your organisation and your customers’ data. These additional layers of protection safeguards your business against various forms of theft and attacks.