MFA vs. 2FA: Which Authentication Method Is Safer?

May 5, 2025

Passwords have been the default security tool for years. But here’s the problem: they’re not enough anymore.

In 2021, 85% of data breaches happened because of phishing or stolen passwords.

The lesson? If you’re only using passwords, you’re leaving the door wide open for attackers.

That’s why two-factor authentication (2FA) and multi-factor authentication (MFA) exist. These tools add extra layers of security. In fact, studies show 2FA stops 96% of bulk phishing attacks, whereas MFA is capable of blocking 99.9% of automated account breaches.

But not every business needs the same level of protection. A small online store won’t need the same setup as a hospital handling patient records.

This article breaks down how 2FA and MFA work, where they fit in 2025, and how to choose the right approach for your needs.

What are 2FA and MFA?

You’ve probably come across 2FA and MFA when setting up security for your accounts. They both add extra protection, but what exactly do they mean? Let’s break them down and see how they work.

2FA: Two steps, stronger security

2FA does exactly what the name says: it adds two steps to verify your identity. Here’s how it works:

Step 1: You enter your password (something you know).
Step 2: You provide a second proof, like a one-time code sent via SMS or email (something you have).

For example, when you log into your bank account, you might type your password and then get a text message with a 6-digit code. Without that code, hackers can’t access your account — even if they steal your password.

2FA isn’t bulletproof, but it’s a massive upgrade over passwords alone. It’s like adding a deadbolt to a door: not impossible to break, but way harder for intruders.

MFA: More layers, more security

MFA takes the idea further. Instead of just two steps, it uses two or more different types of verification. These fall into three categories:

Something you know (password, PIN).
Something you have (phone, hardware token).
Something you are (fingerprint, face scan).

For instance, logging into a corporate system might require:

A password (something you know),
A fingerprint scan (something you are),
And a code from a physical security key (something you have).

MFA’s flexibility makes it ideal for high-risk scenarios. Banks, healthcare systems, and government agencies use it because it’s tough for attackers to bypass multiple layers.

2FA vs. MFA: Which one do you need?

Understanding when 2FA and MFA work best and where they might fall short sets the stage for understanding which method fits into your security plan.

Let's see how these authentication methods shine in various scenarios.

When 2FA shines

2FA isn’t a one-size-fits-all solution, but in the right situations, it’s a game-changer. Let’s break down where it adds the most value:

Low-risk applications

For platforms that don’t handle highly sensitive data (think streaming services, newsletters, or forums), 2FA strikes a perfect balance.

It adds an important layer of security without overwhelming users. For example, a fitness app storing workout logs might use 2FA to protect user accounts but skip more complex MFA setups.

Customer-facing workflows

E-commerce sites, travel booking platforms, and subscription services benefit from 2FA because it secures transactions without disrupting the user experience.

Imagine a customer checking out on an online store: a quick SMS code or email OTP keeps their payment details safe without adding friction.

Challenges with 2FA

While 2FA is effective, it’s not flawless. Here are the hurdles businesses often face:

Implementation costs

Smaller businesses might struggle with the upfront costs of SMS gateways, authenticator apps, or API integrations. Maintenance also adds up — monitoring delivery rates, handling failed OTPs, and updating systems as threats evolve.

User resistance

Even a few extra seconds during login can frustrate users.

For example, if a verification code takes too long to arrive, customers might abandon a signup flow. Worse, some users may disable 2FA altogether if the process feels overly difficult.

Device dependency risks

If a user loses their phone or can’t access their email, account recovery becomes a headache.

Support teams often field urgent requests like, “I changed my number, how do I log in now?” Without backup options (like backup codes or alternate verification methods), businesses risk locking out legitimate users.

Security gaps in SMS-based 2FA

SMS codes, while convenient, are vulnerable to SIM-swapping attacks or phishing. If a hacker hijacks a user’s phone number, they can intercept OTPs and bypass 2FA.

This is why industries like banking are moving toward app-based authenticators or hardware keys.

Accessibility issues

Not all users have smartphones or reliable internet. Relying solely on SMS or authenticator apps can exclude people in areas with poor connectivity or those using older devices.

Best practices for effective 2FA

To overcome these challenges, businesses need a strategic approach. Here’s how to make 2FA work for you, not against you:

Prioritize user education

Explain why 2FA matters. A short tutorial during signup (“This keeps your account safe from hackers”) or a friendly email reminder (“Your OTP is on the way!”) can reduce resistance.

Transparency builds trust — users are more likely to comply if they understand the benefits.

Simplify the login experience

Simplifying the login process starts with small changes that make a big difference.

For example, let users sign in with their email address instead of forcing them to remember a complicated username. Since everyone already knows their email, this cuts down on forgotten login details.

Next, avoid overwhelming users with strict password rules. Yes, strong passwords matter, but forcing a reset every 30 days? That’s a recipe for frustration.

Pair 2FA with simple password guidelines (like a minimum length) to keep accounts secure without annoying users.

Offer multiple verification options

Not everyone wants SMS. Provide alternatives like:

Email OTPs (for users without smartphones).
Authenticator apps (like Google Authenticator for tech-savvy users).
Backup codes (for emergencies when devices are lost).

Plan for account recovery

Don’t wait for lockout panics. Offer:

Backup codes: Let users download or print them during setup.
Alternate contact methods: Allow users to add a backup email or security questions.
24/7 support: Ensure users can quickly reach help if they’re stuck.

Balance security and convenience

For low-risk apps, allow users to “trust this device” for 30 days. This way, they only need to complete 2FA once per month on their personal devices.

How Plivo simplifies secure 2FA

Plivo helps businesses stop hackers in their tracks without adding friction for users. It combines strong security with seamless logins because staying protected shouldn’t be a hassle.

Here’s how.

Boost conversions with reliable OTP delivery

2FA only works if users actually get their codes. Plivo sends SMS and voice OTPs in under three seconds, so customers aren’t left waiting.

Here’s how it keeps things fast and secure:

Automatically flags invalid or fake phone numbers.
Routes messages through the fastest carrier to avoid delays.
Sends millions of codes without slowdowns.

The result? Fewer abandoned carts, smoother sign-ups, and happier users.

Cut errors and fraud with phone number lookup

Plivo’s Lookup API does the detective work for you. It checks any phone number worldwide to spot:

Fake numbers: Block accounts using disposable or invalid numbers.
High-risk countries: Flag numbers from regions prone to fraud.
Carrier details: Avoid sending codes to landlines (which can’t get SMS).

And the best part? It works in the background — no extra forms or user input needed.

Pricing starts at $0.004 per check, with bulk discounts for heavy users.

Save money with fewer failed messages

Plivo sends texts and calls directly to users — no detours, no middlemen. This “one-hop” system means:

No extra fees: You’re not paying for undelivered messages.
No delays: Codes arrive fast, every time.
No surprises: Predictable pricing, even at high volumes.

For businesses, that means lower costs and fewer support tickets about “missing codes.”

Fraud protection built right in

Plivo also helps by:

Blocking risky countries: Turn off SMS/calls to regions you don’t serve.
Stopping premium number scams: Block calls to high-cost numbers hackers use to steal money.
Giving pattern-based alerts: Get alerts if delivery rates suddenly drop (a sign of fake numbers).

When to consider MFA

Some logins are routine, while others protect something far more valuable. MFA isn’t always necessary, but in certain situations, it can be a smart safeguard. Here’s when it makes sense to use it.

Regulated industries

Financial institutions, healthcare providers, and government agencies often need to comply with strict requirements, mandating advanced security measures.

Critical systems

MFA is essential when securing servers, databases, admin panels, or tools that store intellectual property, customer data, or financial records. A breach in these systems can lead to significant financial and reputational harm.

Challenges with MFA

Implementing MFA comes with hurdles that require proactive management:

Device limitations

Older smartphones, legacy systems, or devices without biometric sensors (e.g., fingerprint scanners) may not support modern MFA methods like app-based authenticators or hardware tokens. Employees using unsupported devices risk being locked out.

Complex setup processes

Users often struggle with configuring MFA tools, especially without clear, role-specific guides. For example, setting up a YubiKey on a macOS device requires different steps than on Windows, and unclear instructions may lead to errors or abandonment.

Low user adoption

Without training, employees may view MFA as an inconvenience. Remote workers, in particular, might avoid using unfamiliar tools like biometrics or security keys if they lack guidance.

Security workarounds

Frustrated users may share passwords, reuse weak credentials, or disable MFA entirely to speed up logins — defeating the purpose of enhanced security.

Inconsistent user experience

Poorly integrated MFA solutions can disrupt workflows.

For example, requiring a hardware token, password, and SMS code for routine tasks slows productivity and fuels resentment.

Best practices for effective MFA

To tackle these challenges, businesses need a clear strategy. Here’s how to make MFA work in your favor:

Provide multiple authentication options

It’s important to offer a variety of authentication methods because not everyone uses the same devices or has the same tech skills.

Support diverse user needs and devices by offering:

SMS/email OTPs: For employees with basic mobile phones or limited tech access.
Authenticator apps: For users comfortable with smartphones.
Biometrics: Fingerprint or facial recognition for modern devices.
Hardware tokens: Physical keys for high-risk roles like system admins.

Implement role-based training programs

Training isn’t one-size-fits-all. Different teams have different needs, so your training should reflect that.

IT teams, for example, need detailed guides for setting up hardware tokens on different operating systems, like “How to Configure YubiKey on Windows 11.” Field employees, who might not have time for lengthy tutorials, benefit from short video demos showing how to approve logins via SMS or authenticator apps.

Executives, who often switch devices or travel, need personalized 1:1 sessions to make MFA setup hassle-free.

Enforce organization-wide MFA policies

If MFA is optional, attackers will target the weakest link. That’s why it should be enforced for everyone — employees, contractors, freelancers, and even legacy systems. Granting temporary access to third parties? They should use MFA too.

Outdated tools that don’t support MFA? Update or replace them. Regular audits help ensure no one is bypassing the rules.

Deploy adaptive MFA

Not every login needs the same level of security. Adaptive MFA adjusts based on the risk level of the situation.

For routine tasks, like checking email from a trusted device, a password and SMS code are enough. But for high-risk scenarios like logging in from a new country or accessing financial systems, additional checks, such as biometrics or hardware tokens, kick in.

Integrate MFA with single sign-on

Integrating MFA with single sign-on (SSO) enhances security without adding extra steps for users.

With SSO, they authenticate once using MFA and gain access to multiple systems without needing to log in repeatedly. This not only strengthens protection but also improves the user experience by reducing login fatigue.

Trends shaping authentication in 2025

As we move further into the digital world, the way we verify our identities is changing quickly. By 2025, new trends will change how people and companies confirm who they are and keep their information secure.

Here’s a look at the most important trends in authentication for 2025:

Passwordless authentication is on rise

Passwordless methods, like scanning your fingerprint, are faster and easier. Imagine logging into your account with a quick face scan instead of typing out a long password.

It’s not just convenient — it’s what people want. In fact, 52% of consumers prefer biometrics over traditional authentication methods. It’s no surprise this trend is picking up speed.

Businesses have also realized they need something better.

Already, 33% of IT departments globally are using passwordless authentication, and over one-third of companies are planning to adopt it in the near future. That’s a clear sign that companies see this as the future of security.

Plus, enterprises are already leading the way. For example, Microsoft reported 2 million monthly passwordless sign-ins through Windows Hello in early 2023. When tech giants like Microsoft push passwordless options, it’s a signal to everyone else: this is the direction we’re heading.

AI threats demand smarter defenses

AI-generated deepfakes are already posing serious security risks, and the problem is only growing.

By 2026, experts predict that 30% of businesses will no longer trust traditional identity verification methods due to the rise of AI-driven fraud. This is especially concerning for systems that rely on facial recognition or voice authentication, as deepfakes allow attackers to impersonate individuals and bypass security measures.

Financial institutions are particularly vulnerable — fraudulent identities can erode trust and compromise sensitive transactions. To counter this, businesses must adopt AI-powered tools capable of detecting deepfakes in real-time before they cause damage.

Beyond security, deepfakes also raise legal and ethical concerns.

As AI-generated content becomes more sophisticated, the reliability of biometric data declines, prompting discussions about data collection, storage, and privacy. Regulations similar to the General Data Protection Regulation (EU) (GDPR) may emerge to address these risks, ensuring stricter safeguards for personal information and reducing the potential for misuse.

Behavioural biometrics

What if your identity wasn’t based on a password you could forget or a fingerprint that could be faked, but on something uniquely yours — your online behavior?

That’s what behavioral biometrics is all about. It tracks how fast you type, the way you move your mouse, or even how you swipe on your phone to figure out if it’s really you.

This trend is picking up steam because it’s tough for hackers to mimic these unique habits, making it a powerful way to keep your digital life secure. Why is this so important?

Well, businesses and banks are jumping on board to protect millions of users. Take the Royal Bank of Scotland, for example. They’re using it to safeguard 18.7 million accounts by analyzing how people type and swipe.

It’s not just banks either; schools are using it to stop cheating in online exams by watching how students interact with their devices. The numbers back this up too — the market for this tech is projected to climb to $9.92 billion by 2030.

Decentralized identity

Picture this: instead of tech giants or governments holding all your personal info, you keep it in a secure digital wallet on your phone. That's a decentralized identity in a nutshell. So, why is this trend blowing up, and why should you care?

The rise is driven by a few key shifts. For one, cyberattacks are out of control. This makes those old-school, centralized databases look like easy targets.

People are also fed up with having no say over their data; they want to decide who sees what. Plus, new tech like blockchain is making this whole idea work better than ever. It’s no wonder the decentralized identity market is expected to jump from $156.8 million in 2021 to a massive $77.8 billion by 2031 — that’s serious growth.

With decentralized identity, you only share what’s needed, keeping your information safer. It also saves time (faster logins or ID checks) and works everywhere, from banks to online services.

Take the European Union’s EUDI Wallet: it’s already helping people access their data across borders without the hassle.

Future-proof your security strategy with Plivo

Whether you're protecting internal systems or customer data, understanding MFA vs. 2FA is important for your business. 2FA requires users to prove their identity in two simple ways. MFA takes it a step further by adding extra layers of verification for even stronger protection.

Using 2FA along with additional security checks gives you the best of both worlds: ease of use and solid security. Providers like Plivo simplify the process of setting up and integrating these tools, so you can protect your data without making things complicated for your users.