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Another Obstacle For Hackers To Scale

Two-factor authentication looks more cost-effective as computer theft rises

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For DataPipe, a privately held Web hosting and IT outsourcing company, the threats of cybertheft and hacker attacks are more than just a concern–they represent major potential liabilities. The computer servers at the Hoboken, N.J.-based company traffic in huge amounts of private data from corporate clients–everything from e-commerce transactions to medical records. A single server may host Web pages or e-mail for several companies, so a wily hacker could compromise several clients in one shot.

While DataPipe uses several layers of security to guard against intruders, the one that it considers among its most effective involves two-factor authentication, which requires a second passcode or device, in addition to a more conventional secret personal identification number (PIN), to allow a user onto a system.

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