Online security of their personal and financial information against scams and data breaches is a persistent worry for consumers, one that financial services providers and other businesses are in a constant race to address.
With 40 million Americans suffering financial losses of $47 billion from online hackers and identity thieves in 2024, digital encryption and other technologies are emerging and evolving to shield consumers and businesses from malevolent incursions into their checking, savings, credit card, investment, and other accounts.
The broad and rapid implementation of online platforms in nearly every industry has brought with it increased risk, and has required a response focusing on internet security as households take to their personal computers and smartphones to order takeout and groceries online, shop for clothing and electronics, or telecommute.
First American Bank is among the banks offering an extra layer of online security for our online banking platform that many users may not know much about.
What is “two-factor” authentication?
It’s very likely you’ve encountered the newest of these technologies, known as “two-factor” authentication, or “2FA” for short, when you log on to your favorite social media, financial and commercial-services websites. You may also have heard it referred to as “multi-factor”, or MFA.
2FA combines one of the most prevalent factors for identifying online users—the login/password—with a second layer of digital-access protection. These extra “authenticators’’ range from preset questions for which only users may know the answer, like your first pet’s name, to sophisticated biometric tools like fingerprint and retina scanners.
“Two-factor” vs. “two-step” authentication
But don’t mistakenly confuse “two-step” authentication with “two-factor” authentication. The key difference between the pair is that “two-step” relies on a single authentication factor applied twice in steps. An example is the prompt for your billing ZIP code when you use your credit card online.
In contrast, “two-factor’’ authentication may use a password as one factor in tandem with a second factor, like a security token or fingerprint and facial scans.
Someday, experts say, most users will securely access their digital accounts and services without ever having to use a password.
Use of 2FA is uneven
While many large companies are now utilizing some form of 2FA, implementation so far has been less common in small and medium sized businesses. As of 2025, 87% of companies with greater than 10,000 employees are using 2FA. This percentage drops to 78% in medium sized businesses, and 34% for small businesses.
The growth of 2FA usage has been impactful, as a Microsoft study found that companies and individuals who used more than one factor to identify eligible users blocked 99.2% of all attacks encountered.
A Microsoft study found that companies and individuals who used more than one factor to identify eligible users averted virtually all of the attempted phishing’ and other illegal incursions they encountered, but 2FA has been relatively slow to catch on.
Applying 2FA to your online accounts
Fortunately, users don’t have to be coders or data-breach experts to activate and calibrate 2FA identity-protection software on their desktop and notebook personal computers and smartphones.
Microsoft, Apple, Facebook and LinkedIn, among others, provide two-factor identification apps and support among their online-security offerings to shield access to their online accounts.
You should also review the various online banking and account safety measures that First American Bank employs. Those services are free to our customers.
Contact First American Bank and let us provide you with secure banking services that offer the extra peace of mind from two-factor authentication.
