Multifactor Authentication (MFA)

The Hidden Risks of SMS-Based Multifactor Authentication (MFA)

Your phone buzzes—it’s a message from your bank. Curious what it could be, you open the message. A text message from your bank confirming a transfer you never initiated. Pause for a moment, you think to yourself, “That’s odd. Normally when I log into my bank they’ll text me a confirmation number…. It’s probably a scam text.” Just to be sure you switch over to your banking app. Before you can react, hackers have drained your account. How could this happen? Thi9s is an example of a SIM Swapping attack. This abrupt attack happens when a hacker tricks your phone company into switching your phone number to a new SIM card they control. This allows them access your calls, messages, and sometimes even your online accounts. An all-too-common cybersecurity risk that underscores the vulnerabilities of SMS-based authentication.

Using SMS-based multifactor authentication (MFA) is a common way to add extra security to your online accounts. It works by sending a unique code to your phone via text message, which you then enter alongside your password. While this seems secure, recent investigations and reports have shown that SMS is not as safe as we might think. Weaknesses in the system and sophisticated hacking methods, like SIM swapping, have made these risks more apparent.

Why SMS-Based MFA Falls Short

1. Interception Risks: Text messages (SMS) travel through several steps before reaching your phone. These steps might involve companies that handle large numbers of messages for businesses. Unfortunately, hackers can exploit these systems and intercept your authentication codes. For example, investigations into companies like Mitto AG revealed that such messaging networks were used for spying. This kind of weakness highlights the need for better online security.
2. SIM Swapping Attacks: Hackers can trick your phone company into transferring your phone number to their device. Once they have control of your phone number, they can receive your text messages and phone calls, including authentication codes. This type of attack, called SIM swapping, has been used in prominent cases, leading to stolen money and hacked accounts. Businesses relying on SMS for authentication should work with experienced cybersecurity providers to prevent such risks.
3. Lack of Encryption: Unlike apps designed for security, SMS messages are not encrypted. This means that if someone intercepts your message, they can read its content. Encryption is like locking a letter in a box that only the recipient can open. Without it, text messages are vulnerable to spying and theft. For businesses in regions like Orange County, investing in better cybersecurity tools is essential to avoid these dangers.

A Better Alternative: Microsoft Authenticator App

To improve security, people and businesses can use app-based authentication, such as the Microsoft Authenticator App. This method offers several benefits:

• End-to-End Encryption: Authentication codes are protected so that only you can access them.
• Device-Specific Access: Codes are created on your device, making them safer from hackers.
• Integration with Microsoft 365 Business Premium: The app works well with other advanced security tools.

Microsoft 365 Business Premium: A Comprehensive Security Solution

For businesses, Microsoft 365 Business Premium offers tools to enhance cybersecurity, including:

• Protection Against Cyber Threats: Tools like Microsoft Defender for Office 365 guard against phishing emails, suspicious links, and unsafe file attachments.
• Secure Device Management: Microsoft Intune allows businesses to apply security settings to protect data on both company-owned and personal devices. If a device is lost or stolen, sensitive information can be removed remotely.
• Safe Remote Access: Advanced authentication tools help employees work securely from anywhere.
• Data Protection: Microsoft Purview Information Protection helps encrypt emails and prevents unauthorized access to sensitive information.
• Strong Endpoint Security: Microsoft Defender for Business shields devices from ransomware and other sophisticated attacks.

Moving Beyond SMS

While SMS-based MFA is better than having no extra security, its weaknesses make it less reliable in today’s cybersecurity environment. Switching to app-based authentication and using the advanced features of Microsoft 365 Business Premium can help individuals and businesses better protect their data.

As a trusted cybersecurity provider, Orange County Computer can ensure access to modern, cutting-edge solutions. Contact us today to start building a safer digital future with secure authentication methods and resilient cybersecurity strategies.