Until you have something to lose! Loss aversion and two-factor authentication adoption

Abstract

Purpose: In this study, the authors seek to understand factors that naturally influence users to adopt two-factor authentication (2FA) without even trying to intervene by investigating factors within individuals that may influence their decision to adopt 2FA by themselves. Design/methodology/approach: A total of 1,852 individuals from all 34 provinces in Indonesia participated in this study by filling out online questionnaires. The authors discussed the results from statistical analysis further through the lens of the loss aversion theory. Findings: The authors found that loss aversion, represented by higher income that translates to greater potential pain caused by losing things to be the most significant demographic factor behind 2FA adoption. On the contrary, those with a low-income background, even if they have some college degree, are more likely to skip 2FA despite their awareness of this technology. The authors also found that the older generation, particularly females, to be among the most vulnerable groups when it comes to authentication-based cyber threats as they are much less likely to adopt 2FA, or even to be aware of its existence in the first place. Originality/value: Authentication is one of the most important topics in cybersecurity that is related to human-computer interaction. While 2FA increases the security level of authentication methods, it also requires extra efforts that can translate to some level of inconvenience on the user's end. By identifying the associated factors from the user's ends, a necessary intervention can be made so that more users are willing to jump on the 2FA adopters' train.