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IT Management

5 Types of Authentication To Secure Your Small Business

Oct 16, 2024

Choosing an authentication method to protect your business depends a lot on the business itself. We can help you figure out which system will work the best to protect you.

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Stephan Miller
5 Types of Authentication To Secure Your Small Business

What we'll cover

You're juggling countless responsibilities as a small or midsize business (SMB) owner. Amid the daily hustle, it's easy to overlook a critical aspect of your operations: cybersecurity. But this is something you can't afford to ignore. The digital landscape is fraught with risks, and your business data is a prime target for cybercriminals.

According to GetApp's 2024 Data Security Survey, 53% of IT professionals reported experiencing at least one data breach in the last 12 months.* This statistic highlights the urgent need for an effective authentication strategy. Whether you're a business owner, founder, or entrepreneur, understanding the different types of authentication can help you make informed decisions to enhance your company's security.

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This article will guide you through five types of authentication that can secure your small business. We'll explore how each method works, its benefits, and how to choose the right authentication strategy for your needs.

What is authentication, and how does it work?

Authentication is your digital security guard. It's the process of verifying a person or service is who they claim to be before granting access to your business's sensitive information or systems. Think of it as checking IDs at the door of an exclusive club, but instead of a nightclub, this guard is protecting your company's data, applications, and networks.

Here's how it typically works:

  1. A user attempts to access a system or resource.

  2. The system asks for proof of identity, such as a password or fingerprint.

  3. The user provides the requested proof.

  4. The system verifies the proof against stored information.

  5. If the proof matches, access is granted. If not, access is denied.

For SMBs, authentication is your first line of defense against unauthorized access. It's what stops a random person from logging into your accounting software or prevents a disgruntled ex-employee from accessing customer data.

Over half the professionals GetApp surveyed have experienced a data breach in the last year. This is most likely why 82% of those same professionals confirmed that their organization's IT security spending increased from 2023 to 2024.* Businesses are recognizing the importance of investing in security measures such as robust authentication.

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Why is authentication important?

Choosing the right authentication method is crucial for protecting your small business from data breaches. [1] Whether you opt for password-based or passwordless approaches, it's essential to understand your options.

The tactics of cyber attackers only get more advanced as time goes on, and authentication is your first line of defense against them. Here are some key reasons robust authentication is crucial:

  • Enhanced security: With 32% of IT professionals identifying weak authentication as a significant vulnerability in their organizations, robust authentication methods can help close this gap. By ensuring that only verified users can access your systems, you can significantly reduce the risks of unauthorized access.

  • Compliance and trust: Many industries have regulations governing data protection. Implementing strong authentication measures not only helps you comply with these regulations but also builds trust with your customers.

  • Reduced risk of data breaches: Given that 56% of organizations attribute data breaches to software vulnerabilities, enhancing your authentication strategy can mitigate this risk. Stronger authentication methods, such as multi-factor authentication (MFA), can prevent unauthorized access even if a password is compromised.

  • Improved user experience: Effective authentication doesn't just enhance security—it can also streamline user access. Single sign-on solutions (SSO), for instance, allow users to access multiple applications with one set of credentials, making it easier for employees to do their jobs without compromising security.

  • Cost-effective solution: Investing in robust authentication methods can save your business from the high costs associated with data breaches. With 67% of IT professionals using antivirus security tools and 66% relying on firewalls, a well-rounded security approach that includes strong authentication can be a cost-effective way to protect your business.

Types of authentication

Now that we understand why authentication is crucial, let's explore the five main types of authentication you can implement in your small business. Each has its strengths and potential drawbacks, so consider your specific needs when deciding which to adopt.

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1. Password-based authentication

Password-based authentication is the most common form of authentication, requiring users to enter a unique string of characters to gain access to a system. However, this method can be vulnerable to attacks such as brute force and phishing. To mitigate these risks, it's essential to enforce strong password policies, such as using a combination of upper and lowercase letters, numbers, and symbols, and changing passwords regularly.

Pros:

  • Easy to implement and understand.

  • No additional hardware required.

  • Can be strengthened with password policies such as minimum length and complexity requirements.

Cons:

  • Vulnerable to brute force attacks, phishing, and password reuse

  • Users often choose weak passwords or reuse passwords across multiple accounts

  • Can be forgotten, leading to lockouts and productivity loss

Best practices

  • Enforce strong password policies.

  • Implement account lockouts after multiple failed attempts.

  • Encourage the use of password managers.

  • Regularly prompt users to update passwords.

Despite its limitations, password-based authentication remains widely used. Our latest Data Security Survey finds that security questions are the second most common authentication method used alongside passwords, used by 52% of surveyed organizations.

2. Biometric authentication

Biometric authentication leverages unique physical characteristics to verify identity. Common methods include fingerprint, facial, and voice recognition. This approach offers a high level of security, as it's difficult for hackers to replicate a user's physical traits. However, it can be expensive to implement and may not be suitable for all use cases, as some users may find it inconvenient or an invasion of their privacy.

Pros:

  • Highly secure

  • Convenient for users

  • Can be faster than typing passwords

Cons:

  • Requires specialized hardware

  • Privacy concerns over storing biometric data

  • Can be affected by physical changes such as injuries and aging

Best practices

  • Use biometrics in combination with other authentication factors.

  • Ensure proper encryption and storage of biometric data.

  • Have backup authentication methods in case of biometric system failure.

Biometric authentication is gaining traction in the business world. GetApp's 2024 Executive Cybersecurity Survey reveals that 69% of companies require biometric authentication to enhance cybersecurity, while 23% offer it as a voluntary option.** Also, 88% of IT and cybersecurity professionals report being satisfied to extremely satisfied with the results of using biometric authentication in their company.

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3. Multi-factor authentication and two-factor authentication

Multi-factor authentication (MFA) and two-factor authentication (2FA) require users to provide multiple forms of identification, adding an extra layer of security. Two-factor authentication (2FA) is a specific type of MFA that requires two different types of credentials such as a password and a security code sent to a mobile device or email. MFA and 2FA are highly recommended for SMBs, as they offer a cost-effective way to enhance security without sacrificing convenience.

Pros:

  • Significantly more secure than single-factor authentication

  • Can combine the strengths of different authentication types

  • Adaptable to different security needs and risk levels

Cons:

  • Can be seen as inconvenient by some users

  • Requires additional setup and management

  • May need extra hardware or software

Best practices

  • Start with 2FA and expand to MFA for more sensitive systems.

  • Offer multiple second-factor options such as SMS, email, and authenticator apps.

  • Educate users on the importance of MFA to encourage adoption.

MFA is becoming increasingly common in businesses of all sizes. Our Data Security Survey finds that 51% of IT professionals use multi-factor authentication for all business applications, while 48% use it for some of their applications.

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4. Single sign-on authentication

Single sign-on (SSO) authentication allows users to access multiple applications with a single set of credentials. This simplifies the login process for employees and reduces the risk of password fatigue. However, SSO can be risky if not implemented properly, as a compromised password could grant access to multiple applications. To mitigate this risk, SSO solutions should be integrated with strong authentication methods such as MFA.

Pros:

  • Improves user experience by reducing password fatigue

  • Reduces support costs related to password resets

  • Centralizes user authentication, making it easier to manage and monitor

Cons:

  • If the SSO credentials are compromised, multiple systems could be at risk

  • Implementation can be complex, especially in environments with legacy systems

  • May require changes to existing applications to be compatible with SSO

Best practices

  • Combine SSO with strong user authentication methods such as MFA.

  • Regularly audit SSO configurations and connected applications.

  • Implement proper session management and timeouts.

5. Token-based authentication

Token-based authentication involves the use of temporary security tokens to verify identity. These tokens are typically generated by a server and sent to the user's device. This method offers a high level of security, as tokens are short-lived and difficult to intercept. Token-based authentication is commonly used in API authentication and other scenarios where password-based authentication is not suitable.

Pros:

  • Reduces the need to constantly re-authenticate

  • Can be more secure than password-based systems

  • Supports stateless authentication, which can improve scalability

Cons:

  • Tokens can be stolen if not properly secured

  • Requires proper implementation to ensure security

  • Can be complex to manage, especially token expiration and revocation

Best practices

  • Use secure protocols such as OAuth 2.0 or JSON Web Tokens (JWT).

  • Implement short expiration times for tokens.

  • Store tokens securely on client devices.

  • Have a robust token revocation system in place.

How to choose the right authentication software

Once you've determined the user authentication methods that best suit your needs, it's time to select the appropriate software to implement them. Here are some steps to take:

1. Identify what you're trying to protect and who needs access. Consider factors like the sensitivity of your data, the number of users, and whether you need remote access capabilities.

2. Evaluate your current infrastructure to determine what authentication software will integrate with your systems.

3. Consider the tech-savviness of your users and the training they'll need when selecting an authentication method.

4. Set a budget for authentication upgrades.

5. Research authentication software. GetApp offers comprehensive directories of various security solutions, including:

6. Take advantage of free trials to ensure the solution meets your needs before committing long-term.

7. Choose a solution that can grow with your business.

Your next steps: Build a stronger digital fortress

Authentication is a critical part of safeguarding your small business. By understanding the different types of authentication, evaluating your requirements, and selecting the right software, you can create a robust security framework that protects your valuable data.

Authentication is an ongoing process. Regularly review your security policy, update your software, and educate your employees on best practices to ensure your digital fortress remains impenetrable.

Start by evaluating your current authentication practices and identify areas for improvement. Explore the authentication software options available on GetApp and select the solution that best aligns with your SMB's needs.

Source

  1. Market Guide for User Authentication, Gartner

Survey methodology

*GetApp's 2024 Data Security Survey was conducted online in August 2024 among 350 respondents in the U.S. to learn more about data security practices at businesses around the world. Respondents were screened for full-time employment in an IT role with responsibility for, or full knowledge of, their company's data security measures.

**GetApp's 2023 Executive Cybersecurity Survey was conducted in May 2024 among 238 respondents in the U.S. to explore how IT and cybersecurity professionals are responding to the rising threat of biometric fraud. Respondents were screened for IT and cybersecurity roles at companies that use security software and have more than one employee. Respondents were screened for involvement in, or full awareness of, cybersecurity measures implemented at their company.

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About the author

Stephan Miller

Stephan Miller is a writer and software developer specializing in software and programming topics. He has written two published books and is a frequent contributor to GetApp.
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