The digital age has made handling your personal finances more convenient than ever before. You can do your personal banking from your couch when you have a laptop or phone nearby. One drawback of this change is that bank accounts are more vulnerable to cybercrime. You can easily boost the security of your online accounts by using two-factor authentication (also known as 2FA). Where the best smart home security systems are great for household safety, 2FA is what you need for online safety.

Many people are familiar with 2FA, but most don't know how important it is. This cyber shield is worth the few minutes necessary to set it up.

What is two-factor authentication (2FA)?

2FA is a widely used digital security tool that adds an extra layer of protection to user logins. Think of it like a lock with two keyholes instead of one. Even though 2FA is more secure than a normal login, it doesn't add much time to the login process once you set it up.

Image shows a gold lock over a blue background with electronic designs running through the entire image.
Source: Pixabay

This authentication method requires users to provide two forms of identification. Typically, this takes the form of a password as well as a code sent to your phone or generated by an authentication app. The idea behind 2FA is that even if an attacker gains access to your password, they can't access your account if they don't have the second factor.

The concept of 2FA has been around for decades, but it wasn't until the rise of mobile devices that it became widely adopted. In 2011, Google introduced 2-Step Verification for Google accounts, which required users to enter a code sent to their phone in addition to their password. Other companies have implemented 2FA as a security option for their users, including Facebook, Twitter, and Microsoft, among other tech juggernauts. Despite its effectiveness, 2FA is still optional on most websites and services. It's a highly recommended security tool for users who want to ensure their accounts are as secure as possible. Take a closer look at what 2FA is and how it works if you're interested.

2FA: A brief history

The history of login authentication can be traced back to the early days of computing when systems were secured using basic password protection. Creating a simple password that grants access is a familiar method for most internet users. While better than nothing, basic password logins aren't the most secure. The concept of one-time passwords was introduced in the 1970s, which allowed users to enter a different password each time they logged in. This method was still relatively vulnerable to attacks.

Image shows a username and password pop-up for reddit.com.

It wasn't until the 1990s that more advanced authentication methods began to emerge. The introduction of biometric authentication, which uses unique physical traits such as a fingerprint or facial recognition to verify a user's identity, marked a significant step forward in login security. Other methods, such as smart card authentication, token authentication, and challenge-response authentication, were also developed. These new authentication methods only became more important after the turn of the century. Mobile devices and online accounts skyrocketed in popularity, and 2FA was a natural step from one authentication method to two.

How 2FA can protect you and your finances

2FA requires two forms of identification when users attempt to log in. Although this usually means entering a password and an additional code, there are many forms of identity verification 2FA can use. The result is a much more secure login.

Image shows the hands of a person holding a smartphone using fingerprint authentication. The phone screen reads 'Place the left edge of your finger' and has a diagram showing a fingerprint.

2FA uses three main types of verification. They can be described as something you are, something you have, or something you know. A 2FA login might use a fingerprint or retinal scan to identify who you are. An example of the "something you have" verification method would be receiving a code on your phone. You might be asked some quick security questions that you previously confirmed to satisfy the "something you know" option. Other forms of authentication can be used by 2FA as well.

Why use 2FA for online banking?

There's a simple reason why you should use 2FA on your financial accounts. It practically doubles the security of your bank login! Many modern cybercrimes involve accessing bank accounts online using username and password information. If an intruder gains access to your bank account, it can be worse than if someone steals your credit or debit card. There are more mechanisms in place for stolen cards. If you enabled 2FA, having access to your username and password won't be enough for an attacker to log in to your account.

For these reasons, most banks offer or require 2FA for online banking. Though, some banks don't have 2FA. It's a good idea to check if your bank provides 2FA for logging in to your bank account. If your bank does offer 2FA, enable it.

How to enable 2FA with Fidelity

The Fidelity 2FA process is simple and enables the security feature for both in-browser and Fidelity app logins. Follow these steps to enable 2FA for Fidelity online banking.

  1. Open the Fidelity website in a browser and log in.
  2. Click Profile.
    Screenshot shows the online Fidelity profile page with a red box around the Profile button in the top left.
  3. Scroll down and click Security center.
    Screenshot shows the bottom of the Fidelity Profile page with a red box around the Security center hotlink/button.
  4. Click Enable next to the 2-Factor Authentication section.
    Screen shot shows the Fidelity online Security center page, with a red box around the Enable button just next to '2-Factor Authentication at Login'.
  5. Select how you want to receive the security code (text or call).
  6. Click Send security code.
    Screenshot shows a pop-up that asks the user to choose if they would rather receive a security code via text or via call. Red boxes surround the option to choose text and the button that says Send security code.
  7. Enter your code into the field after you've received it.
  8. Click Submit security code.
    Screenshot shows the pop-up that says 'We sent the code' with a field where the user can enter the security code. Red boxes surround the field where a code can be entered and the button below it that says 'Submit security code'.

Logging in to Fidelity prompts a 2FA security code, just like it did here. This example uses a version of 2FA that texts a code to the user's phone. In other circumstances, the options and methods for enabling 2FA may look different. It's uncommon, but sometimes there are separate steps for the web login and the mobile login. You can always contact your bank to learn more about the options that are available to you.

Does every U.S. bank support 2FA?

Some banks haven't gotten with the trend of supporting 2FA for online banking. Most banks in this category will likely join the movement within the next few years, especially if customers express interest. Commonly used banks that don't have 2FA include Citizens bank, HSBC, IberiaBank, KeyBank, Service Credit Union, and Union Bank. For a complete list, head to the 2FA Directory website.

There could be several reasons why some banks have not implemented 2FA as a security measure for their customers' online banking accounts. One reason could be the cost of implementing and maintaining such a system. Banks must invest in new technology and infrastructure to support 2FA, which requires resources. Some banks may be concerned about the inconvenience that 2FA could cause their customers, as it adds an extra step during the login process.

As online banking becomes increasingly popular and the risk of data breaches increases, it will be important for banks and users to consider implementing security measures like 2FA. The extra step during login is worth it for the heightened security.

Keep your financial accounts secure

A few minutes of setup and the additional step during login are worth the extra security that 2FA creates. Bank accounts, in particular, are in danger of being targeted by cybercrime. This security feature is a powerful shield against intruders that shouldn't be overlooked.

You don't need to stop with bank accounts for using 2FA. Many website logins now offer 2FA. Even Google offers 2FA for signing into your Google account! Don't hesitate to improve your online security.