2FA: Your Best Defence Against Cybercrime in the Digital Age

Author: Colleen Tree, Senior Product Owner

Did you know the average cost to a small business of a cyber breach in the 2021-22 financial year was $39,000?¹

And we know that the financial cost to businesses suffering any cyber security or online fraud event has only escalated since then. So, as financial advisers and business owners, ensuring all your stored client data is kept secure is crucial.

A data breach can significantly impact your business and reputation, and it can be devastating to have to inform clients that their information has been compromised. One way to improve security is by implementing two-factor authentication (2FA) on your XPLAN site.

What is Two-Factor Authentication?

2FA is an authentication method that needs two forms of identification to grant access to a system. This process dramatically reduces the risk of unauthorised access to confidential data, as it requires a password and a second form of identification, such as a fingerprint, facial recognition, or a code sent to a mobile device.

2FA is one of the most valuable and straightforward ways to protect against unauthorised access to your client's information.

Why is 2FA essential?

When you think about how much client data is stored in XPLAN, you must pull out all the stops to protect it. Once a hacker has access to client data, they usually leverage it to gain access to financial accounts, steal their identity, and perpetrate further fraud.

By implementing two-factor authentication, XPLAN adds an extra layer of security to its platform, making it more difficult for cybercriminals to access sensitive data. This added layer of protection provides peace of mind for financial advisers and their clients, knowing that their data is secure and protected.

How does 2FA work in XPLAN?

XPLAN's two-factor authentication process is straightforward and user-friendly. When logging in to XPLAN, users will enter their username and password as usual. However, the XPLAN system will prompt the user to provide a second form of identification instead of being granted access immediately. The options are sending a code to their mobile or email or a software token from an authenticator app.

By enforcing this additional step for each team member, 2FA provides an extra layer of security beyond just a password. As a result, XPLAN ensures that only authorised users can access client data, reducing the risk of cyber-attacks and data breaches.

The advantages of implementing 2FA for your business:

2FA can significantly lessen the risk of a data breach by making it more challenging for attackers to steal login credentials
Implementing 2FA can help you comply with regulatory requirements [Federal Court finding against RI Advice: cyber risk management is a critical obligation for AFSLs in the financial services industry]²
Enrich your client's confidence regarding the security practices you have in place - demonstrating your commitment to protecting their data
A simple and cost-effective solution that can prevent expensive data breaches and associated costs of remediation and damage control

Factors to consider when implementing a 2FA protocol

Users will need access to a smartphone to receive an SMS or generate a software token from their authenticator app unless they use the email option. Your team may require training in this area, especially if they aren't familiar with this process.

81% of company data breaches result from poor passwords³, so don't let your company be one of the statistics. Furthermore, educating your team about not using passwords at work, which they use on personal websites, is imperative. Otherwise, a cyber attack on a personal site could give a hacker access to your business systems.

How can we help you to make the right changes?

Turning on 2FA is an effective way to provide an additional layer of security. Please contact us to learn more about how to implement 2FA on your XPLAN site.

You can also access the Australian Government Small Business Cyber Security Guide, which will provide more guidance on being vigilant around cyber security.

If you're ready to use your XPLAN system more effectively, speak to our team of experienced consultants, who can discuss how we can help.

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