Multi Factor Authentication Guide: MFA, Passwords & Verification
August 20, 2025
Multi factor authentication (MFA) is no longer optional—it's essential for protecting your business. If you're managing sensitive data or user accounts, relying on just a username and password isn't enough. This blog will walk you through what MFA is, why it's critical, and how to implement it effectively. We'll also cover common mistakes, key benefits, and best practices to help you secure your systems against unauthorized access.
Understanding multi factor authentication
Multi factor authentication adds an extra layer of security by requiring users to provide two or more verification factors to access an account. Instead of just entering a password, users must also confirm their identity through another method—like a fingerprint or a code sent to their phone.
This approach helps prevent unauthorized access, even if a hacker manages to steal a password. MFA is especially important for businesses that store sensitive information or manage multiple online accounts. It reduces the risk of data breaches and helps meet compliance standards.
Common mistakes to avoid when using MFA
Even with the best intentions, businesses often make avoidable errors when setting up MFA. Here are some of the most common mistakes and how to fix them.
Mistake #1: Using only one authentication factor
Relying solely on something you know, like a password, leaves you vulnerable. A strong MFA setup should combine at least two different types of authentication factors, such as something you know and something you have.
Mistake #2: Not training employees
If your team doesn’t understand how MFA works or why it’s important, they might bypass it or fall for phishing attempts. Make sure to provide simple training and regular reminders.
Mistake #3: Skipping mobile device security
Many MFA methods rely on smartphones. If those devices aren’t secure, neither is your MFA. Encourage employees to use screen locks and keep their devices updated.
Mistake #4: Ignoring backup options
What happens if someone loses their phone or can’t receive a text message? Always offer backup methods like backup codes or an authenticator app.
Mistake #5: Using SMS as the only method
Text messages can be intercepted. While SMS is better than nothing, it shouldn’t be your only MFA method. Consider using push notifications or authenticator apps for better security.
Mistake #6: Not reviewing login activity
Failing to monitor login attempts can leave you blind to threats. Regularly check your logs for suspicious activity and set up alerts for failed logins.
Mistake #7: Delaying updates
Outdated systems can have vulnerabilities. Keep your MFA software and devices updated to avoid security gaps.
Key benefits of using multi factor authentication
MFA offers several advantages that go beyond basic password protection:
- Reduces the risk of unauthorized access by requiring multiple verification steps
- Protects sensitive information even if a password is compromised
- Helps meet compliance requirements in regulated industries
- Provides flexibility with different authentication methods like biometrics or apps
- Increases user trust by showing a commitment to security
- Limits damage from phishing attacks and stolen credentials
Why MFA is important for business security
Cyberattacks are becoming more frequent and sophisticated. MFA helps businesses protect against threats like phishing, credential stuffing, and brute-force attacks. It’s a simple way to add a powerful layer of defense.
By requiring more than just a password, MFA makes it harder for hackers to gain access—even if they have your login details. This is especially critical for businesses managing customer data, financial records, or proprietary systems.
Types of authentication factors explained
There are three main types of authentication factors used in MFA. Understanding each one helps you choose the best combination for your business.
Factor #1: Something you know
This includes passwords, PINs, or answers to security questions. It’s the most common form of authentication but also the easiest to compromise.
Factor #2: Something you have
This could be a smartphone, security token, or smart card. It adds a physical element that’s harder for attackers to replicate.
Factor #3: Something you are
Biometric data like fingerprints or facial recognition fall into this category. These are unique to each user and difficult to fake.
Factor #4: Location-based authentication
Some systems use your geographic location as an additional factor. If a login attempt comes from an unusual location, access may be blocked or require extra verification.
Factor #5: Time-based authentication
This method restricts access to certain times of day. It’s useful for limiting exposure during off-hours or weekends.
Factor #6: Adaptive MFA
Adaptive MFA adjusts the required factors based on risk. For example, logging in from a new device might trigger additional verification.
How to implement multi factor authentication effectively
Rolling out MFA doesn’t have to be complicated. Start by identifying which systems and users need protection. Prioritize accounts with access to sensitive data or administrative controls.
Next, choose the right authentication methods for your team. Options include authenticator apps, push notifications, and biometrics. Make sure to test everything before going live and offer support during the rollout.
Finally, document your process. A clear MFA implementation guide helps ensure consistency and makes it easier to train new employees.
Best practices for maintaining MFA
Once MFA is in place, keep it effective with these tips:
- Review authentication methods regularly to ensure they’re still secure
- Encourage employees to use strong, unique passwords
- Monitor login activity for signs of unauthorized access
- Provide backup options for lost devices or failed logins
- Update systems and apps to patch security vulnerabilities
- Reassess your MFA implementation guide every 6–12 months
Staying proactive helps you get the most out of your MFA investment.
How Sterling can help with multi factor authentication
Are you a business with 20 to 80 employees looking to improve your security? If you're growing and managing more data, now is the time to implement multi factor authentication. It’s one of the most effective ways to protect your systems and users.
At Sterling, we help businesses like yours set up and manage MFA solutions that fit your needs. From choosing the right authentication method to creating a full MFA implementation guide, our team is here to support you every step of the way.
Frequently asked questions
What is the best authentication method for small businesses?
The best authentication method depends on your needs, but authenticator apps like Microsoft Authenticator offer a good balance of security and ease of use. They generate time-based codes that are harder for hackers to intercept than text messages.
Using an authenticator app also avoids issues with delayed text message delivery. It’s a reliable way to protect your online accounts without adding too much friction for users.
How does multi-factor authentication prevent unauthorized access?
Multi-factor authentication works by requiring more than just a username and password. Even if a hacker steals your login credentials, they still need another form of authentication—like a fingerprint or passcode.
This extra step makes it much harder for unauthorized users to gain access. It also reduces the risk of successful phishing attacks or brute-force login attempts.
Can I use MFA without a smartphone?
Yes, you can use MFA without a smartphone. Hardware tokens, desktop-based authenticators, and email verification are all valid options. Some systems also support biometric authentication on laptops.
If your team doesn’t use smartphones for work, choose an authentication method that fits your environment. The goal is to add an extra layer of protection without disrupting workflows.
What are some examples of multi-factor authentication?
Examples include using a password plus a fingerprint, or a username and password with a push notification to your phone. Other combinations might involve a smart card and a PIN.
Each example uses at least two different types of authentication factors. The more diverse the factors, the harder it is for attackers to bypass them.
How do I enable MFA for my business systems?
Start by checking if your current software supports MFA. Most modern platforms offer built-in options. Then, follow their setup instructions or consult an MFA implementation guide.
Make sure to test the setup and train your users. Enabling MFA is only effective if everyone understands how to use it and knows what to do if they lose access.
What is adaptive MFA and when should I use it?
Adaptive MFA adjusts its requirements based on the risk of a login attempt. For example, logging in from a new device or location might trigger a prompt for extra verification.
This type of MFA is useful for businesses that want more flexibility. It helps balance security and convenience by only adding steps when something seems unusual.
