PBM Answer Center

What Is MFA and Why Does Cyber Insurance Require It?

By Brady Phenicie · July 2, 2026 · 4 min read

Short answer

MFA, or multi-factor authentication, requires a second proof of identity beyond a password. Cyber insurers require it because stolen passwords are one of the most common ways attackers access email, cloud apps, and remote systems.

How MFA helps

If a password is stolen through phishing or reuse, MFA can stop the attacker from logging in without the second factor.

Authenticator apps and hardware keys are generally stronger than SMS codes.

Where to enable MFA first

Start with Microsoft 365, remote access, banking, payroll, accounting software, admin accounts, and any system that contains client data.

FAQ

Is MFA required for Microsoft 365?

It should be enabled for all business Microsoft 365 users, and especially for administrators.

Related services

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