Role Of Two Factor Authentication In Safeguarding Online Transactions
                     Role Of Two-Factor Authentication In 
Safeguarding Online Transactions
An Introduction
In recent years, cyberattacks have become increasingly common, prompting a greater need 
for stronger passwords. But even with strong passwords, we're still at an increased risk of 
being hacked. This is where two-factor authentication steps into the rescue as it adds an 
extra security layer to protect critical personal and financial information. If you want to 
start your own payment gateway and incorporate two-factor authentication to protect your 
business and customers, this blog on the role of two-factor authentication in safeguarding 
online transactions will surely be of great interest to you.
The Numbers Don’t Lie
According to research, the use of Two-Factor Authentication has significantly reduced 
account takeovers by as much as 99 percent:
 Viruses and malware can no longer influence the security of accounts using Two-Factor 
Authentication
 Stolen passwords via hacking are rendered useless with Two-Factor Authentication in 
place
 Account setups with Two-Factor Authentication are at a lower risk of takeover
Two-Factor Authentication
Two-factor authentication (2FA) can be described as a common form of multi-factor 
authentication that requires two identifiers to verify the user’s identity. The most common 
combination includes a verification code (also referred to as a One-time password or OTP) 
that gets sent by different messaging channels and platforms (such as email, SMS, Rich 
Communication Services, WhatsApp, Push Messages, Voice, Backup codes, Authenticator 
Apps, and more).
How Does 2FA Helps?
2FA helps in mitigating data privacy and information security concerns by eliminating or 
reducing the risks associated with compromised or weak passwords. For instance, online 
shoppers may be asked to enter their account credentials followed by a secret code sent to 
their mobile device. This makes it significantly harder for hackers and unauthorized 
individuals or agencies to gain access to the shopper’s sensitive personal and financial 
information, ensuring the integrity, safety, security, and confidentiality of the purchases 
made.
How does two-factor authentication work?
Generally, two-factor authentication involves the same general, multistep process:
• The user is prompted by the website or app to log in.
• The user enters their login credentials. The site or app finds a match and recognizes the 
user. For processes that do not require the submission of passwords, a unique security 
key is generated for the user. This key gets validated by the authentication tool.
• The site or app then prompts the user to start the second login step. This step may 
involve entering a PIN, facial recognition, hardware token, etc.). 
Its Significance
With a significant part of our daily lives spent online, it's no wonder that our digital 
accounts have become an easy target for cybercriminals and hackers. As we visit more new 
websites and apps, we are burdened more with far too many passwords to remember. This 
is what results in the biggest nightmare of every security expert in this world: password 
recycling. No wonder, hackers thrive off this unfortunate human habit.
Its Benefits
• Two-factor authentication helps minimize time-consuming password-resets which 
helpdesks are already burdened with. The implementation of 2FA also helps users safely 
access systems from any device or location without putting sensitive data at risk.
• Two-factor authentication helps in complying with specific compliance measures, such as 
GDPR, PCI DSS, and HIPAA. Moreover, it reduces the occurrence of fraud and thus saves 
invaluable time for the helpdesk or customer support team. These saved resources (time 
and manpower) can be shifted to more complex customer service issues or revenue-
generating tasks.
Conclusion
Are you ready to get started with two-factor authentication? Find out how the two-factor 
authentication solution by ITIO Innovex secures account logins, safeguards digital 
transactions, and authenticates new users to increase consumer trust and conversion rates 
across multiple channels. If you need assistance on how to 
start your own payment gateway business, please contact us to discuss your 
requirements.
THANK YOU