Whitepaper - 2FA Impact on Data Breaches
Lower the risk of data breaches by adopting two-factor authentication
As 81% of hacking related breaches stem for weak or compromised passwords and the cost of two-factor authentication is a small proportion of the potential cost of a breach, the argument for 2FA for all users is strong. The table below illustrates the potential financial impact of a hacking-related breach, and the financial impact based on the probability of a breach in the next 24 months.
|Records||Breach Financial Impact||Financial Impact by Breach Probability|
The next table illustrates the variable costs of two-factor authentication by the number of authentications (based on list prices for the French market.)
|Authentications||Cost of SMS Verification||Cost of TOTP Verification|
The cost versus benefit distinction is clear: the cost of two-factor authentication is proportionally minimal compared to the risk of hacking-related breaches stemming from weak credentials. At the extreme, the cost of 5 million SMS authentications is € 265,000, while at any point the financial risk based on probability is nearly €375,500 for 10,000 records, with a potential financial loss of €1,370,000. The numbers vary based on digital records handled and the number of verifications, however, realistic scenarios prove that the cost of using 2FA to mitigate the risk discussed is substantially less than the probable financial fallout of the risk.
Interested in our user account security tools?