Password protection: Two-factor authentication is vital to secure access

Passwords have long been used by enterprises to permit secure access to vital applications, data, systems and networks. This…
Firefly cctv camera, with a cyber digital background abstract

Share this article:

Nicolai Solling, Director of Technical Services - help AG Middle East
Nicolai Solling, Director of Technical Services – help AG Middle East

Expert Article By: Nicolai Solling, Director of Technology Services at help AG

Passwords have long been used by enterprises to permit secure access to vital applications, data, systems and networks. This tired-and-tested form of authentication is still widely deployed as the first line of defense, protecting sensitive corporate data and applications from external threats. However, in today’s world, as the dependence on information technology grows exponentially, many corporations are now struggling to manage and store passwords securely for their employees.

One of the big issues with password management is that there are simply too many of them. Research has shown that at any given point of time, a single employee will be required to maintain an average of 15 different passwords within both the private and corporate spheres. The challenge of remembering this sheer volume of login credentials is exacerbated by rigid password policies which specify guidelines such as use of lower and upper case characters, special characters and alphanumeric combinations. What this inadvertently promotes then is the reuse passwords across multiple applications including social media websites which have historically proven to be woefully insecure.

Furthermore, complex password policies often stipulate regular update which can make it difficult for users to remember their passwords. Resetting a forgotten password would require a call to the IT helpdesk. Statistics show that 35 to 50 percent of help desk calls are related to passwords with a cost estimated between USD25 to USD50 per call. And this does not even account for the loss of productivity in the time that it takes to reset the password which itself is a massive overhead.

Organizations have tried to remedy these problems though the use of Single Sign-On (SSO) solutions. By employing complex application integration, enterprises grant users access to all the systems with a single username/password combination. But this is limited by the complexity of the underlying systems and compatibility issues.

More importantly, given that cyber criminals now have a number of sophisticated means to infiltrate systems and steal credentials, the Single Sign-On (SSO) is no longer a viable authentication solution. Organizations need to make long-term plans for replacing or supplementing password-based authentication with stronger forms of authentication.

Two Factor Authentication

This is seen as the next logical step in user authentication and is far more secure than password based authentication. The basic principle followed by such systems is to grant access based on ‘something you know’ such as a username/password combination and ‘something you have’.

The latter part of this requirement could be a one time password (OTP) provided in a text message or by a secure token systems. What IT managers need to be aware of however, is that the various forms of two-factor authentication are vastly different in their implementations and therefore will differ in their performance. By understanding the vulnerabilities of each of these systems, decision makers can select the solution which best protects the organization.

The Pitfalls of Text Messaging Passwords

Providing an OTP via a text message may seem secure but organizations need to consider that SMS is not an inherently secure channel. As SMS does not employ any form or encryption, it is very easy for hackers to use low cost hardware to intercept these messages, extract the information from them and then gain access to the network by using this.

The cost associated with SMS services may mean organizations limit the authentication challenges. Furthermore SMS based token solutions are troublesome as with certain mobile networks, SMS is a low priority service and therefore may sometimes only arrive with considerable latency, thereby making authentication impossible.

Token Based Authentication

A highly popular form of two-factor authentication, which has already seen usage by enterprises across the globe, has been the use of a dynamically generated token. This is by far the best form of authentication but CIOs still need pay close attention to how the tokens are distributed and managed. Currently, most well established vendors provide hardware devices which generated tokens based on pre-loaded seat-keys.

The problem with these systems however is that these seat-keys are hardcoded into the devices at the time of manufacture and this information is managed by a third party provider. As with any critical business application, entrusting such information to a outside source should immediately raise security concerns. This became all but too apparent when hackers broken into the servers of security firm RSA and stolen information linked to the company’s SecurID tokens, which are widely used to grant secure access to corporate networks and online bank accounts.

Furthermore, the token device itself entails a substantial overhead and as the number of users increases, the cost of such an implementation skyrockets as well. Loss of the device could translate to loss of productivity as there is inevitably a time duration associated with procuring a new hardware device.

Advancements in Two-factor Authentication

The good news however is that there are now players in the market who offer two-factor authentication solutions which overcome both these limitations. These solutions entrust the generation of seat-keys to the organization itself thereby removing the dependence on a third party provider. Furthermore, software tokens can be generated on the employees mobile device and though desktop applications thereby bringing down implementation costs as well as easing distribution efforts.

Screen Shot 2013-11-07 at 16.08.39Organizations need to understand that investment for a secure architecture at the time of initial deployment can mean far better cost-efficiency than working security into the design at a later point. Username/password as the sole means for authentication is no longer a feasible solution and smart business that avail the latest technologies will see long term benefits.

More Information:

www.helpag.com

About Security Buyer

Security Buyer is the leading authority in global security content, delivering expert news, in-depth articles, exclusive interviews, and industry insights across print, digital, and event platforms. Published 10 times a year, the magazine is a trusted resource for professionals seeking updates and analysis on the latest developments in the security sector.

To submit an article, or for sponsorship opportunities, please contact our team below.

Rebecca Spayne Picture

Rebecca Spayne

Group Managing Editor

Georgina Turner Picture

Georgina Turner

Sales Manager

Afua Akoto Picture

Afua Akoto

Marketing Manager

Related News

Camera of the year - securitybuyer.com

Camera of the Year needs your vote!

Voting is open for Camera of the Year at the Security Buyer Readers’ Awards 2026, with readers invited to recognise the camera
Data Storage solution of the year - securitybuyer.com

Vote for Data Storage Solution of the Year

Voting is open for Data Storage Solution of the Year at the Security Buyer Readers’ Awards 2026, giving readers the
Ai Solution of the year - securitybuyer.com

Have your say: vote for AI Solution of the Year

Voting is open for AI Solution of the Year at the Security Buyer Readers’ Awards 2026, with readers invited to select their winner
Access control of the year - securitybuyer.com

Have you voted for Access Control Solution of the Year?

Voting is open for Access Control Solution of the Year at the Security Buyer Readers’ Awards 2026, with readers invited
PaxLock Pro2 - securitybuyer.com

Paxton officially launches PaxLock Pro2

Paxton the security technology manufacturer has launched a brand-new re-engineered PaxLock which is built to protect straight
KentixONE data centre - securitybuyer.com

Data centre security with KentixONE

Prior1 develops container data centers to meet the highest security and energy efficiency standards. Their containers require
Chubbsafes - securitybuyer.com

Chubbsafes explores certified storage for jewellery and precious metals

Chubbsafes, part of Gunnebo Safe Storage, has launched a new technical discussion guide examining when certified
Mercury trends report - securitybuyer.com

New Mercury Research Finds Growing Cybersecurity Gap

2026 Trends in Access Controllers Report finds interoperability, cloud connectivity and AI are reshaping long-term controller strategies.
Chris Carroll - securitybuyer.com

Comelit-PAC Promotes Chris Carroll as Sales Director

Comelit-PAC has appointed Chris Carroll as Sales Director, following an 18 year career with the company, seeing him progress
Jason Bezuidenhout - securitybuyer.com

Zygal Appoints Jason Bezuidenhout

Zygal has appointed Jason Bezuidenhout as Chief Revenue Officer (CRO), strengthening its leadership team as the company continues
Scroll to Top