What Is 3-Factor Authentication?

Think about how many times you’ve logged into a system using just a password, and how easy it would be for someone to guess that password — or worse, steal it!

While two-factor authentication (2FA) added a much-needed layer of security beyond just a password, it still leaves room for vulnerabilities. That’s where three-factor authentication (3FA) steps in.

3FA is changing the game for IT teams by taking security a step further. It combines three layers of identity verification to make unauthorized access almost impossible! ?

Read along to understand what 3FA is, how it works, and why it matters for SMEs like yours.

Understanding Authentication Factors

Authentication revolves around verifying that the person accessing a system is indeed who they claim to be. 

This verification relies on three primary factors:

1. Knowledge factor (what you know): This includes passwords, PINs, or answers to security questions, where the user provides information that only they know. While this is the oldest form of authentication, it is also the most vulnerable to breaches.

2. Possession factor (what you have): This involves physical items such as a security key, authenticator app, or a TOTP (time-based, one-time password) sent to a registered device. The idea is that the person trying to gain access has possession of something unique.

3. Inheritance factor (what you are): Biometric authentication like facial recognition, fingerprints, or iris scans fall under this category. These methods leverage physical characteristics that are unique to the individual and difficult to replicate.

3FA leverages all three factors simultaneously to verify identity, making it exponentially harder for cybercriminals to bypass security protocols. ✌️

What Is 3-Factor Authentication?

As 3FA combines all three factors — knowledge, possession, and inheritance, it creates the most secure form of authentication available today. 

While 2FA relies on just two of these factors (often knowledge and possession), 3FA adds another layer of assurance by requiring the user to authenticate with their unique biometric data as well.

For instance, when accessing a corporate system, a user might need to:

1. Enter their password (knowledge factor).
2. Verify their identity with a security key or authenticator app (possession factor).
3. Complete the process with facial recognition or a fingerprint scan (inheritance factor).

This additional layer ensures that even if two factors are compromised — say, someone steals your password and security key — they still can’t gain access without your biometric information.

Benefits of 3-Factor Authentication

With cybersecurity threats constantly evolving, SMEs often lack the robust security measures of larger organizations, making them prime targets for hackers. This is why 3FA is worth considering ?

Stronger Security

By requiring three independent layers of verification, 3FA makes it incredibly hard for attackers to breach your systems. 

Even if a hacker gets hold of a password and a stolen security key, they’ll still need biometric data, which is much harder to fake.

Regulatory Compliance

Many industries have strict data protection regulations, like GDPR, HIPAA, or PCI DSS. Implementing 3FA can help SMEs meet these requirements and avoid hefty fines.

Increased Trust

Whether it’s your employees, customers, or partners, people want to know that their data is safe. Using 3FA demonstrates a commitment to security, boosting confidence in your organization.

Future-Proofing

3FA positions your business as ready for the next wave of cybersecurity challenges, reducing potential liabilities! 

Let’s now look at how 3FA actually works and its best use cases.

How 3FA Works in Real Life

Paint a picture of an IT manager logging into their system containing sensitive customer data. The 3FA process typically looks like this:

1. The manager types in their password.
2. They plug in their security key or open their authenticator app to generate a one-time code.
3. They finish the login process by scanning their fingerprint or using facial recognition.

Each step verifies a different aspect of their identity, creating a nearly foolproof barrier against unauthorized access.

3FA is especially effective in scenarios where the stakes are high, such as:

• High-security systems: Protecting sensitive business data and intellectual property from cyberattacks.

• Large financial transactions: Adding an extra layer of assurance for payments or account changes above a certain threshold.

• Remote work: Ensuring employees accessing systems remotely are thoroughly authenticated.

Challenges of 3FA (and How to Overcome Them)

While 3FA offers top-notch security, it’s not without its challenges:

1. Usability: Adding a third authentication step can feel tedious for users but the solution for this is to invest in tools, like facial recognition or security keys, that streamline the process without compromising security.

2. Cost: For tools like biometric scanners or secure hardware tokens, implementing 3FA requires a financial investment. This might feel daunting, but the long-term benefits of avoiding breaches and building trust are worth the cost! ?

3. Technology compatibility: As not all systems and devices support 3FA out of the box, SMEs need to assess their infrastructure and make upgrades wherever necessary.

This generally involves evaluating both software compatibility and hardware capabilities to ensure a smooth implementation.

The Future of Authentication Is Passwordless

Since passwords are easy to forget, easy to steal, and often reused across accounts, they are quickly becoming outdated. So, what’s next? 

Passwordless authentication is the next big thing, and it pairs well with 3FA.

Emerging technologies like advanced biometric authentication and behavioral analytics are further changing the IT game. For instance, some systems are able to analyze how you type or move your mouse to verify your identity. 

While 3FA is the gold standard today, the future of authentication promises even more seamless and secure options.

How to Implement 3FA in Your SaaS

To successfully adopt 3FA, make sure you:

• Evaluate current security protocols: Identify vulnerabilities and assess whether current systems support multi-factor authentication (MFA).

• Invest in advanced tools: Acquire the necessary tools such as security keys, biometric devices, and authenticator apps.

• Train employees: Educate employees on the importance of 3FA and provide step-by-step guidance on using authentication tools effectively.

• Monitor and optimize: Continuously review authentication logs and update systems to ensure ongoing protection against emerging threats.

JumpCloud streamlines this process by integrating MFA and other advanced security measures into a single, scalable solution. ⚡

Enhance Security with JumpCloud’s 3FA 

With the rise in cybersecurity threats, SME IT teams need solutions that go beyond the basics and 3FA is one such advanced solution. 

If you’re looking to strengthen your IT security and keep breaches at bay, adopting 3FA is a must. JumpCloud makes it simpler than ever by seamlessly integrating advanced authentication methods, including 3FA, into your existing workflows. 

What’s more, with JumpCloud you can enhance security, ensure compliance, and build trust across your organization without sacrificing usability! Start a self-guided demo to see how.