How does multi-factor authentication differ from two-factor authentication?

Multi-factor authentication provides enhanced security compared to two-factor authentication by adding an additional layer of security beyond something a user knows (such as a password) and something they have (such as a mobile device for receiving SMS codes). The third factor in multi-factor authentication could be something like a fingerprint, facial recognition, hardware token, or a biometric verification method, making it more difficult for unauthorized individuals to gain access. This extra layer helps to significantly reduce the chances of unauthorized access and better secures sensitive information.