How does multi-factor authentication enhance security against fraud?

Multi-factor authentication (MFA) enhances security by requiring users to provide multiple forms of verification before being granted access to an account or system. This additional layer of security beyond just a username and password significantly reduces the risk of unauthorized access even if one factor (like a password) is compromised. It is effective against fraud and identity theft because it adds complexity for malicious actors trying to gain unauthorized access. Implementing MFA makes it more challenging for hackers to impersonate legitimate users, thus reducing the likelihood of successful fraudulent activities.