Types of authentication methods: Which is right for your business?

Types of authentication methods: which is right for your business?

Did you know that cyberattacks grew at a rate of 30% year-over-year in Q2 2024, while data breaches increased by 20% from 2022 to 2023?

Alarming, right?

These statistics highlight the urgent need for stronger cybersecurity measures, and one effective solution is user authentication.

There are several types of authentication methods you can deploy on your platform to verify user identity before granting account access. Let’s take a look at some of them.

What is user authentication?

User authentication is the process of verifying whether a user trying to access your platform is actually who they claim to be. It operates on the principle of never trust, always verify. To gain access, users must go through a verification process and are only granted access if they successfully authenticate their identity.

Authentication systems allow or deny access based on the proof provided during this verification process. These systems can be either digital or physical, depending on the specific requirements of your platform.

Why is user authentication important? 

User authentication ensures that only authorized individuals can access your data and platform. Without robust authentication methods, your platform becomes vulnerable to fraud and unauthorized access. User authentication also helps prevent the creation of fake accounts by bots or users with junk data, which can be flagged and removed if not thoroughly verified.

Implementing secure authentication methods also helps you comply with data protection standards like the General Data Protection Regulation and the California Consumer Privacy Act. They safeguard your platform from legal consequences while protecting your company from negative PR and the potential financial impact of data breaches. This is crucial, especially since the average data breach in 2024 costs a whopping $4.88 million. 

Different types of authentication

There are several methods of authentication you can implement to improve your platform’s security. Here are some of the best options, along with their pros and cons:

1. Password-based authentication

As the most common type of authentication, password-based authentication relies on a username and password to verify a user’s identity. While it only requires two inputs and doesn't need a second platform for authentication, it’s also the most vulnerable to phishing attacks.

Users often reuse or choose simple passwords, making it easy for cybercriminals to gain unauthorized access. Case in point, in 2023, the password "123456" was used over 4.5 million times–oftentimes convenience often takes priority over security. 

In such cases, cybercriminals can use brute force techniques to access user accounts if there are no additional security measures in place. 

2. Multi-factor authentication (MFA)

To enhance account security, multi-factor authentication methods rely on two or more verification steps to gain access. MFA adds multiple layers of security beyond just entering a username and password. Just a few examples of additional authentication factors include location, one-time passwords (OTPs), push notifications, and IP address. 

Two-factor authentication (2FA) is a type of MFA but relies on just two factors, one of which is typically a username and password. A key to successfully implementing 2FA is ensuring that each factor operates on a different channel, such as combining a password with a one-time code sent via SMS or email. 

MFA provides strong protection against unauthorized access, as it becomes increasingly difficult for cybercriminals to bypass multiple layers of security. However, it may affect user experience (UX), as users must complete extra steps to log in.  

3. Single sign-on (SSO)

One of the most user-friendly authentication methods is SSO, which enables users to access your platform using credentials from another service that acts as an identity provider (idP). Think about it—how much easier is it to tap Sign in with Google or Sign in with Facebook than to manually enter a username and password? With SSO, users only need to log in to their idP account to access multiple platforms with just one click.  

On your end, you’ll need to choose an SSO protocol like Security Assertion Markup Language (SAML) or OpenID and create secure links between your platform and the IdP. When a user logs in, your site communicates with the IdP to verify their identity and grant access. Keep in mind that if the IdP suffers a data breach, cybercriminals could potentially gain access to multiple user accounts through SSO. 

4. Biometric authentication 

Unlike traditional digital authentication methods, biometric authentication verifies a user's identity by using their unique biological characteristics. Biometric authentication can also be integrated into your MFA process. Because it relies on biological traits, this method can be used to grant access to physical locations by installing relevant scanners. The biological data is stored in your database and compared whenever users request access. 

There are different biometric authentication methods available. Here are the most common:

Fingerprint 

Fingerprint scanners match the unique patterns on an individual’s fingerprints. They're widely used in offices, government facilities, and even smartphones. Most fingerprint scanners are highly accurate, often achieving a success rate of up to 99.9%. 

Retina and iris

These scanners rely on the physical characteristics of the human eye to verify a user’s identity. Retina scanners capture the pattern of blood vessels in the retina, while iris scanners use light to capture the intricate patterns within the iris. Although not as commonly used as fingerprint scanners, they are typically deployed in high-security environments.

Facial

Once an approved face is stored in your database, facial scanners analyze the structure of a user’s face to verify their identity. They measure features such as the distance between the eyes, the shape of the nose, facial contours, and more. 

Facial recognition is commonly used by social media platforms, smartphones, and for accessing secure areas. However, it may not always accurately verify a person's identity if their face is scanned from an unusual angle (e.g., a side profile instead of directly facing the camera).

Voice

This method of customer authentication uses speech patterns to identify a user. Software algorithms create a unique voiceprint and cross-check spoken words against it to confirm the user's identity. Typically, users are required to speak a specific phrase. Voice recognition technology is widely used, with common applications in voice assistants like Alexa and Google Assistant. 

5. Certificate-based authentication

Using digital certificates derived from cryptography to identify users is known as certificate-based authentication. Think of it as an electronic passport that contains identification data, public key information, and a digital signature generated from a private key. 

These certificates are digitally signed by certificate authorities, which validate the user's identity. A user can only access the platform if they have the private key that corresponds to the public key. Cryptography is then used to validate the keys, making this one of the most secure methods of authentication available. 

You can also pair certificate-based authentication with other secure methods to create a powerful MFA system capable of thwarting phishing attacks. What makes this type of authentication particularly versatile is that it can be used not only for human users but also for servers, e-passports, and Internet of Things devices. 

6. Token-based authentication

Another popular method for securing access to online platforms is token-based authentication. This method uses a protocol where users verify their identity once, after which they receive a unique access token from the server with a specific validity period. 

During the token’s lifetime, users can access your platform without needing to repeatedly enter their login credentials. This helps enhance the user experience by providing quicker access to resources. The token’s lifespan depends on the type of token used, such as OAuth or JSON Web Token. Once the token expires, users will need to request a new one.

In addition to improving UX, tokens are highly secure because they are completely self-contained, meaning only the server that issued them can verify their authenticity. You also have complete control over token expiration and can deploy them as needed.

However, this centralization also poses risks. If the central server experiences downtime, it can disrupt the login process. Also, if tokens are not managed properly, they can be hijacked by cybercriminals, who then gain unauthorized access to protected data and resources. 

7. Passwordless authentication

Many users find it frustrating to frequently enter login credentials. Passwordless authentication addresses this by allowing access to your platform without the need for passwords or security questions. 

Instead, users can authenticate through other factors, such as biometrics, proximity badges, or token-based authentication. You can also use possession factors, like authenticator apps or OTPs sent via SMS. Another option is to send login links directly to a user’s e-mail once they provide their e-mail address.  

Since no password is involved, cybercriminals can’t use brute force attacks to break into your platform. Also, passwordless authentication works similarly to certificate-based authentication, using public and private keys, making it highly secure. In addition, you can integrate passwordless authentication into MFA or SSO to further increase security.

8. Authentication method protocols

A set of rules that governs how verification happens between endpoints (systems or devices involved in the authentication process) is known as an authentication protocol. The protocols you choose can significantly impact the security of your data, as they determine how securely information is transmitted and verified between devices. 

Here are some of the most common authentication protocols:

Challenge Handshake Authentication Protocol (CHAP)

CHAP uses a three-way message exchange for user authentication. It begins by sending a challenge message to a remote host, which responds using an MD5 (cryptographic) hash function. The local device then checks whether this hash response matches the expected result. If it does, the connection is established. 

Password Authentication Protocol (PAP)

PAP is the basic login process where users enter their username and password. These credentials are compared to those stored in the system, and if they match, access is granted. However, PAP is not very secure—it lacks encryption, unlike CHAP. 

Lightweight Directory Access Protocol (LDAP)

LDAP allows your server to request user data stored in a directory on the public internet or corporate intranet. The user is granted access if their details match those stored in the database. 

Extensible Authentication Protocol (EAP)

EAP supports various types of authentication, like OTPs and smart cards, but it’s primarily used for wireless communications. It offers a high level of security by functioning as a point-to-point protocol on an encrypted network, enabling both the access point and remote device to mutually authenticate through a three-way handshake.

SAML

SAML is an open-source protocol based on Extensible Markup Language (XML) that facilitates SSO. By using signed XML documents, IdPs can pass authentication information to service providers, allowing the seamless implementation of SSO across multiple apps.

OpenID

OpenID is an open-source authentication protocol that enables SSO on your platform. It builds on OAuth 2.0, using its authorization framework to authenticate users through their IdPs to grant access. Unlike SAML, which relies on XML, OpenID uses JSON Web Tokens to complete the user authentication process. 

Ensure robust security with Twilio's effective authentication methods

User authentication is a critical component of your platform’s security, so it's crucial to choose your authentication methods carefully. Consider both the level of security they provide and the user experience. Opt for methods that balance frictionless sign-in with strong security. 

Twilio's security products deliver real-time passwordless verification by cross-checking the personal details provided by users with their phone number records from telecommunication companies. Using the Lookup API for real-time phone data, you can also pair it with Twilio Verify to implement two-factor authentication across voice, SMS, e-mail, WhatsApp, and other channels. 

These APIs handle over 4.5 billion verifications each year and have a 99.95% monthly API uptime. If you’re ready to elevate your security or want to learn more about how Twilio User Authentication & Identity can help you implement user authentication, talk to our  sales team today.