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Why you should use vendors who offer two-factor authentication

In recent times we have seen an increase in cybercrime attacks, across many industries, where user logins have been compromised and a hacker has accessed data. As a result, we have also seen many companies move to adopt two-factor authentication (2FA) to secure their customer’s data.

So what is two-factor authentication?

Two-factor authentication (2FA) is a security process where users must provide two separate authentication factors to verify their identity. This process increases the security of online accounts and prevents unauthorized access.

The two factors can be something the user knows, such as a password, and something the user has, such as a mobile phone or a security token, where a one-time code can be accessed.

The combination of the two factors provides an additional layer of security, making it much more difficult for attackers to gain access to accounts and sensitive information.

You’ve probably used 2FA before, even if you weren’t aware of it. If a website has ever sent a numeric code to your phone for you to enter to gain access, for instance, you’ve completed a multi-factor transaction. This practice is now standard across many insurance companies, banking institutions and other industries that store sensitive data.

Why is 2FA important?

2FA is essential to online security because it immediately reduces the risks associated with compromised passwords. If a password is hacked, guessed or phished, that’s no longer enough to give an intruder access: without approval of the second factor, a password alone is useless. Simply put, it ensures all data stored in the account is safe and secure.

Why should you favour vendors that use 2FA?

Protection of confidential data – vendors with 2FA can better protect your confidential information such as customer data, reducing the risk of data breaches.

Compliance with regulations – Many organisations and regulatory bodies require the use of 2FA to protect sensitive information.

Enhanced trust and reputation – Working with vendors who offer 2FA demonstrates your commitment to security and builds trust with your customers and partners.

Better risk management – The additional layer of security provided by 2FA allows organisations to manage and reduce the risk of unauthorized access to information and systems.

At Cox Automotive, we’re continuously improving our systems to ensure we provide best in class security measures for our customers. Our DMS, Cloudlogic, is migrating to a more secure environment with the introduction of 2FA, protecting our customers’ data and their customers’ data, including the sensitive information required to complete contracts.

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