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Finance & Banking vocabulary · Fintech & Digital Banking

Two-factor authentication

Meaning in finance & banking, with examples

nounCommon term

In finance & banking, two-factor authentication means: A way of checking identity that asks for two different kinds of proof, such as a password plus a code sent to your phone, before giving access.

In Turkish: iki faktörlü kimlik doğrulama, iki aşamalı doğrulama

How it is used

Used in digital banking, IT security and regulation; short form 2FA. The factors are something you know (a password), something you have (a phone or card) and something you are (a fingerprint or face). Banks require it for logins and payments. 'Multi-factor authentication' (MFA) is the wider term.

Example sentences

  1. Two-factor authentication is required every time you log in from a new device.

  2. Most of these account takeovers could have been prevented with two-factor authentication.

Common collocations

  • enable two-factor authentication
  • 2FA code
  • multi-factor authentication
  • strong customer authentication
  • OTPShort for one-time password: a code that is valid for a single login or transaction and only for a short time, usually sent by text message or created in an app.
  • phishingA trick in which criminals send fake emails, messages or websites that seem to come from a bank, in order to steal passwords, card details or codes.
  • online bankingManaging a bank account through the bank's website on a computer, including payments, transfers and statements.
  • mobile bankingUsing a bank's app on a smartphone or tablet to check balances, make payments, transfer money and use other services.
  • 3-D SecureA security step for online card payments in which the card issuer asks the cardholder to confirm the purchase, usually with a one-time code or in the banking app.

More terms: Fintech & Digital Banking

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This page explains English vocabulary for learners. It is not financial advice.