Two-tier protection: why authentication codes have become a necessity

A simple password is no longer enough. While a combination of letters and numbers used to be considered adequate protection, it is now just the first barrier against cyber threats. Two-factor verification (2FA) is exactly what separates a secure account from easy prey for fraudsters.

Why Passwords No Longer Save

Hacks happen all the time. Users often set simple passwords like “123456” or “password”, while attackers use automated brute force attacks. Even if you use a complex password, it can be stolen in a data breach on some website.

Recall the case of the founder of Ethereum, Vitalik Buterin's account being hacked on X (formerly Twitter): a phishing link allowed scammers to access the crypto wallet and steal around $700 000. Without an additional level of protection, financial losses would have been inevitable.

That is why the 2FA code and the entire two-factor authentication mechanism have become a critical necessity.

What Two-Factor Authentication Really Represents

The mechanism is based on the verification of two independent factors:

The first factor is what you know. This is a password that is known only to you. It is your first line of defense and remains relevant.

The second factor is what you can do. This is an action that is only available to the account owner. This includes:

• Enter the temporary code from the app on your phone
• Fingerprint or face scanning
• Physical key ( hardware token )
• SMS or email with verification code

Even if a fraudster learns your password, they will not be able to log in without the second level. This is an easy but effective scheme.

What verification methods exist

SMS codes: available, but not ideal

A text message with a code is sent to your mobile phone. Convenient? Yes. Safe? Not completely. Experts warn about vulnerabilities - if a fraudster takes over your number through a SIM-swap attack, they will intercept the codes. Plus, SMS messages may be delayed or may not arrive at all in areas with poor signal.

Authentication apps: a balance of ease and security

Google Authenticator, Microsoft Authenticator, Authy — these applications generate temporary codes right on your phone, without the internet. They work offline, and one application can generate codes for dozens of accounts. The downside: you need to spend time on setup, and if you lose your phone, access will be lost quickly.

Hardware tokens: maximum security

YubiKey, RSA SecurID, Titan Security Key — physical devices the size of a keychain. They generate codes autonomously, work for years on a single battery, and are not subject to online attacks. The only downside: they cost money and can be lost.

Biometrics: fast and convenient, but concerns about privacy

Fingerprint, facial recognition - high accuracy and convenience. But platforms must securely store your biometric data, which in itself carries the risks of leakage.

Email codes: easy, but it depends on the security of the email.

If your email is hacked, 2FA through it won't help. Plus, the letter may take a long time to arrive or get lost.

Where Two-Factor Authentication is Required

Cryptocurrency accounts are the main priority. If you hold real funds on the platform, enable 2FA immediately. One hack could cost you all your savings.

Bank and financial accounts — the second priority. Online banking requires maximum protection.

Email is the key to everything. If your email is hacked, they can reset passwords on other services. Gmail, Outlook, Yahoo support 2FA.

Social networks — Facebook, Instagram, X. Personal data here is less valuable than in finance, but the account should still be protected.

Working accounts — corporate systems often require 2FA on a mandatory basis.

How to choose the right method

If you need maximum security (financial accounts, cryptocurrency platforms) — choose hardware token or authenticator app. Biometric comes as a second level.

If priority is accessibility and convenience — SMS or email. But remember: this is less secure.

If you have a modern smartphone with good sensors, biometrics is great for everyday accounts.

Step-by-step setup of two-factor protection

Step 1. Choose a method. Decide what suits you: SMS, app, hardware key, or biometrics.

Step 2. Go to account settings. Find the security section and look for the two-factor authentication option.

Step 3. Follow the platform instructions. Usually, you need to scan the QR code with the app, confirm your phone number, or register the key.

Step 4. Check your backup codes. Most platforms issue a set of backup codes in case you lose your primary verification method. Store them in a safe place, preferably offline.

Step 5. Test it. Log out and log back into your account to make sure that the 2FA code works correctly.

Critical mistakes when using two-factor authentication

Do not share your codes — even support should not ask for them. Never.

Beware of phishing sites that ask you to enter a 2FA code supposedly for verification. This is a scam.

If you lost your phone or key, immediately disable 2FA for this account and reinstall it on another device.

Don't rely solely on SMS — it's a vulnerable channel.

Regularly update the authenticator app.

Final output

Two-factor authentication is not an option, but a necessity. Especially when it comes to financial assets and cryptocurrency accounts. Data leaks occur every day, and you are not insured. However, enabling 2FA reduces the likelihood of hacking to almost zero.

Spend 10 minutes setting up right now. This is one of the cheapest and most effective security measures that has ever existed. Your digital security is in your hands.