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Role of Multi-Factor Authentication to Get Cyber Risk Insurance

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Multi-Factor Authentication or MFA has become your instinct for most of your online transactions these days. However, if you are still not aware of MFA, it's high time that you should know about it to protect yourself from cyber-attacks and online fraud.

What exactly is Authentication?

Authentication is the process of verifying the user's identity. When you try to sign up for any software or application and request to access it, you are asked to provide the code i.e. passwords to verify your identity. When the authentication process is done, you are allowed to access the software and applications.

When it comes to using passwords. We have been using passwords as a good privacy feature for decades. It is the easiest way to gain access to networks, computers, applications, software, and other resources mainly sensitive information.

Well, the issue with the passwords is that they can be hacked and shared by cyber intruders. Without having other controls, if someone gets your passwords, they can get access to your data and do certain fraudulent activities.

Relying just on the passwords is not a secure way to protect your business and data. This is where multi-factor authentication or MFA has been introduced. According to the Bloomberg report, the absence of MFA can make your system and data vulnerable to ransomware and other cyber attacks.

What is Multi-Factor Authentication?

Multi-factor authentication or MFA is a second layer of protection used to access data on certain applications, mainly involving your personal or sensitive data.

The most common types of Multi-Factor Authentication or MFA are:

1. Mobile PIN (MPIN) which is a code to unlock the application

2. OTP (One-time password) sent to your email ID and/or phone number

3. A verification message sent to your email address or phone wherein you need to authorise (“yes, it’s me”) to continue

4. Biometric verification such as fingerprint or face recognition.

Why is MFA important for cybersecurity insurance?

Now, multi-factor authentication is required to control remote networks, remote access to emails, and even administrative access. With the help of MFA, it becomes easier to reduce the risk of a security breach that happens due to lost, cracked, or stolen passwords.

Multi-factor authentication for administrator access limits the access of attackers to compromised networks. While MFA of emails limits the access of business email accounts. Without the MFA with emails, attackers do not just access the sensitive data of the business but can also reset the passwords for the applications.

Multi-factor can be considered one of the effective security features. When you have an extra layer of security with your systems and application, it becomes difficult for attackers to access your data. As per the report, MFA can limit approximately 99.9 per cent of data breaches with your accounts. When you have enabled MFA, using your password is not enough to get into your network for the intruders.

When you are just relying on the password as a security feature, cyber hackers can easily gain access to your apps and services that are meant for you. When you use MFA, the hacker needs to have your USB, cell phone, one-time code, warm fingerprints etc, to gain access. Thus, MFA acts as a challenge for a cyber hacker. When the hacker gets such an error, he leaves the process of hacking with your system and seeks another target.

Why has my insurance carrier set it to a minimal requirement?

Cyber hacks are continuously rising after the global pandemic COVID-19. As per the survey, small and mid-level businesses need to be more vigilant. Insurance providers have found that the networks and businesses without MFA are at higher risks than the businesses having MFA in place. With the high rise in cyber hacks, MFA is now a minimum requirement to be eligible for cybersecurity insurance to ensure that no cyber attackers can siphon out money from your policy.

How to implement MFA?

Luckily, there are a variety of services and products available that help you to protect your business with simple as well as strong security features. You can use the services from any reputed and trusted form to evaluate and implement MFA with your business applications. Here are some recommendations to do so:

1. Utilize security tools to control the security of workstations, servers, and remote desktops:

From the various products available in the market that help to implement and administer multi-factor authentication.

2. Secure Microsoft 365 with Conditional Access policy:

The conditional access policy available in Azure Active Directory helps administrators to check conditions such as trusted devices, geographic locations, and access conditions to avoid unauthorized access to the services.

3. Get cybersecurity services:

You can even hire a cybersecurity expert from any trustee service provider. With extensive experience and knowledge in the field, a cybersecurity expert can define the strategy, create a custom plan, implement solutions, and provide consistent maintenance services.

Even when you start the process of multi-factor authentication and need help to complete it, you can take assistance from an expert. They can help you with technical solutions and deal with regulators and third-party auditors and underwriters.

Why should you get cybersecurity insurance coverage?

Nowadays, all kinds of businesses are going online, thus with the increased benefits of technologies, they are exposed to many potential cyber-attacks. Cybersecurity insurance works as a great saver when the business gets affected by any cyber risk and the relevant technology is available tools to mitigate the risk. Cyberattack is one of the major concerns for businesses, whether it is a healthcare centre, bank, restaurant, law firm or IT company. It's better to be safe than sorry. Thus, having cybersecurity insurance becomes the need of the hour to ensure business continuity.

Another reason for having cybersecurity insurance is compliance. Finance, healthcare and other highly regulated sectors are not just concerned about facing the risk of cyber threats and penalties associated with it. Now, almost all the sectors are vulnerable to cyber-attacks and privacy compliance failures. All types of companies are subject to the state data breach laws for accessing, storing and processing personal data. With the help of cybersecurity insurance, the cost of complying with federal, state and international law and even the regulatory penalties can be covered.

It can be said that cybersecurity insurance is considered the action of due diligence. It should be the top priority for many high-profile executives, businesses and firms.

Conclusion

There is no doubt that MFA plays an essential role in securing your data. If you are a business and still haven't enabled multi-factor authentication, then it is time to keep it as a priority. Due to such an indispensable role, companies have made it mandatory to get cybersecurity insurance coverage. Even if your company has met the other eligibility requirements, you should enable multi-factor authentication to get the insurance.

MFA is a tool that allows small and medium-sized businesses to become cyber resistant. Thus, before opting for cybersecurity insurance, companies should check the MFA and invest in other cyber security controls first to ensure eligibility. Thus, it is recommended to get MFA enabled with all your applications in order to get cybersecurity insurance coverage smoothly and ensure business continuity.

Disclaimer: The above information is for illustrative purpose only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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