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Question:

In order to transfer money between bank accounts, your accounting department uses an application that asks them to enter a username and password, then insert a fob into a USB port on the computer. Which of the following statements is correct in this case?

A They are using two-factor authentication.
explanation

For applications requiring a high level of security, requiring multifactor or two-factor authentication has become somewhat standard. The program requires two-factor authentication by requesting a password (something you know) and the fob (something you have). A software token is a code provided to you that you may check on the same device you use to access the application. An external hardware token is anything physical that you must have on hand, such as a key fob that must be plugged into the computer, a key fob that generates a code that changes every 30 seconds, or your mobile phone with an authenticator app.

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