2FA vs MFA: Similarities and Differences for IAM System

In this article, we explain the fundamental role that authentication plays in an IAM system, how it differs from authorization, what two-factor and multi-factor authentication are, their similarities and differences, their pros and cons, and how Soffid can help you choose the best authentication method for your Identity and Access Management system.

What is authentication and why is it important in Identity and Access Management (IAM)?

The first thing to keep in mind when talking about authenticating a user is that it is not the same as authorizing a user.

• Authorization relates to the definition of identities—what is known as Identity Governance and Administration (Soffid IGA)—which grants specific entitlements or permissions to a digital identity based on the resources it needs to access. And importantly, only the resources it really needs, no more.

• Authentication, on the other hand, is about verifying that the user is who they claim to be. Once the identity is authenticated, authorization determines what access rights apply.

Both processes—authentication and authorization of digital identities—are essential in an IAM system because they ensure that access to systems is legitimate.

Types of authentication

To verify a user’s identity, most authentication systems use different authentication factors or methods of identification.

These factors can be based on:

• Something physical (e.g., magnetic cards, security tokens, mobile devices).

• Something inherent to the user (e.g., fingerprint, facial recognition, or other biometric methods).

• Something the user knows (e.g., passwords, PIN codes).

What is Two-Factor Authentication (2FA)?

One of the main goals of cybersecurity in recent years has been to develop methods that enable effective access control. In a time when cyberattacks are becoming more numerous and sophisticated, any organization with a digital presence needs to implement IAM systems that protect sensitive data and resources against unauthorized access, whether caused by malicious intent or human error.

At the same time, members of the organization need to access this information efficiently, without security creating friction with day-to-day operations.

That’s why the traditional “username + password” combination is no longer enough. Organizations need IAM systems that are both secure and efficient. Two-Factor Authentication (2FA) is a security method within IAM systems that requires two forms of identification—two authentication factors—before granting access to a resource.

A common example of 2FA is SMS verification: in addition to entering a password, the user must also provide a unique code sent to their mobile device.

Benefits of 2FA include:

• Effective access control.

• A fast and convenient method for users.

• More effective credentials than traditional passwords.

• Reduced risk of hacking or cyberattacks.

• Compliance with security and data protection regulations.

What is Multi-Factor Authentication (MFA)?

2FA is often considered a subtype of multi-factor authentication (MFA). The difference is that MFA involves two or more authentication factors, typically of different types.

Common categories of authentication factors include:

• Something the user has: physical or virtual tokens, one-time passwords (OTP), time-based one-time passwords (TOTP).

• Something the user is: biometric data.

• Something the user knows: passwords, security questions, PINs.

Sometimes an additional factor is considered: location-based authentication, where access is only possible within a defined geographical area, network, or IP range.

MFA goes further than 2FA by combining multiple types of authentication.

For example:

• A 2FA method might require a password (something the user knows) and a verification code sent to a device (something the user has).

• An MFA method could involve a password (something known), a code sent to a mobile device (something the user has), and unlocking that device with a fingerprint scan (something the user is).

Pros and Cons of 2FA and MFA in IAM Systems 

Both 2FA and MFA serve the same purpose in an IAM system: to increase security, control access (knowing who is accessing what), ensure regulatory compliance, and improve operational efficiency.

However, there are advantages and disadvantages to each:

• MFA, with multiple factors and types of authentication, provides stricter access control and stronger security. But implementation is more complex, which may make it less viable depending on an organization’s size and resources.

• 2FA, while simpler, can still offer very high levels of security. Its biggest advantage is flexibility: most IAM systems with two-factor authentication can be enabled across all kinds of applications and existing infrastructures without major changes.

In summary: MFA provides more layers of authentication, but 2FA is generally easier to implement and scale.

How to Choose Between 2FA and MFA for Your IAM System 

Deciding between 2FA and MFA for your IAM system depends on your organization’s characteristics and needs.

• High-security sectors (e.g., finance, government, healthcare) usually opt for MFA to maximize encryption and access control.

• Personal or professional accounts—especially those used for communication and administrative tasks—often rely on 2FA, as it is secure, practical, and easy to deploy.

At Soffid IAM, we recently launched an advanced authentication tool, Soffid Authenticator, which combines the strong security of MFA with the efficiency and simplicity of Single Sign-On (SSO).

In any case, all Soffid IAM solutions are designed to be efficient, flexible, and scalable. From a single management platform, organizations can configure different modules of identity and access management according to their specific needs.

Get in touch with our team of experts and we’ll help you evaluate which authentication methods best suit the needs of your IAM system and your organization.