While these situations and others like them are the result of various underlying security issues, the reliance on only a username and password to authenticate an individual's identity does not provide enough security for sensitive data. Two-factor authentication requires that two different methods of authentication be used for added security. By requiring something in the user's physical possession like a smartcard, or relying on a unique characteristic of the individual like a fingerprint in addition to the username and password, security is improved and attackers are unable to steal an identity or impersonate a user by simply compromising their username and password. You can learn more about two-factor authentication by reading What is Two-Factor Authentication?

2-Factor authentication is indeed critical to securing data and IT resources. Without it, all the encryption and network monitoring in the world won’t help you — if something is protected only by a password, then it can be compromised without detection simply by stealing/guessing/buying/finding that password. SafeTelework.com is a great example of a remote access service that has 2-factor authentication built in. Other systems can be secured by products from RSA or Entrust. Whatever you do – do something!