NIS2 Directive: Impact on Authentication in Companies

December 17, 2024 by
Laura Viebig

The publication of the NIS2 Directive in December 2022 marks a significant step toward strengthening cybersecurity in the European Union. This directive is an evolution of the original NIS Directive from 2016 and introduces extensive changes that affect companies in Germany and Europe. In this article, we focus on the impact of the NIS2 Directive on authentication and explain why Multi-Factor Authentication (MFA) and other authentication solutions are more important than ever.

What is the NIS" Directive? 

The NIS2 Directive (Network and Information Security) aims to ensure a high common level of security for network and information systems within the EU. It expands the scope of the original NIS Directive and imposes stricter requirements on the security of network and information systems. Member states are required to transpose the NIS2 Directive into national law by October 2024.  


Key Changes and Requirements  

Expanded Scope: The NIS2 Directive now covers not only operators of critical infrastructure (CRITIS) but also many additional companies classified as "essential" or "important" entities. These include organizations in sectors such as energy, transportation, banking, healthcare, drinking water supply, and digital infrastructure. ​ 

Stricter Security Requirements: Companies must implement extensive technical and organizational measures to protect their network and information systems. This specifically includes the deployment of robust authentication solutions. ​ 

Reporting Obligations: Security incidents that significantly impact the provision of services must be reported promptly to the relevant authorities. This enables a swift response and coordination at both national and EU levels.

Enhanced Supervisory Powers: The responsible national authorities are granted expanded powers to monitor and enforce security requirements. Companies that fail to comply with the provisions of the NIS2 Directive face significant penalties. ​ 


The Role of Authentication in the NIS2 Directive  

One of the central requirements of the NIS2 Directive is ensuring that only authorized users have access to sensitive information and systems. Authentication plays a critical role in meeting this requirement.  

Multi-Factor Authentication (MFA): MFA significantly enhances security by combining multiple independent factors for user verification. These factors may include something the user knows (password), something the user possesses (security token), and something the user is (biometric factor such as a fingerprint). ​ 

Strong Authentication: The NIS2 Directive emphasizes the need for strong authentication mechanisms to prevent unauthorized access. Companies must ensure that their authentication systems are robust and resilient against attacks.

Passwordless Authentication: Modern authentication solutions such as FIDO2 provide a secure and user-friendly alternative to traditional passwords. These technologies use cryptographic key pairs to verify the user's identity, eliminating the risk of password theft. ​ 


Challenges and Solutions

Companies are faced with the challenge of meeting the requirements of the NIS2 directive without compromising user-friendliness. Here are some possible solutions:  

User-friendly MFA solutions: Modern MFA systems offer a balance between security and ease of use. Solutions such as one-touch authentication and biometrics can simplify the login process and increase security at the same time. 

Risk-based authentication: By implementing risk-based authentication, companies can adapt the security measures to the current risk. For example, an additional factor could only be required for logins from unknown devices or unusual locations. 


Support from MTRIX  

As a leading expert in professional authentication, MTRIX supports companies in meeting the requirements of the NIS2 directive. Our customized solutions help you to strengthen your authentication systems and implement the required security measures.  

Our offer: 


Consulting and Analysis: We evaluate your current authentication systems and develop a tailored security strategy.

Implementation of MFA Solutions: Implementation of MFA Solutions: Support in the introduction and configuration of modern authentication technologies such as MFA and FIDO2. 

Training and Support: Training your employees and providing ongoing support to ensure that your authentication systems are always up to date. 


Conclusion 

The NIS2 directive presents new challenges for businesses in Germany and Europe in terms of IT security. Implementing robust authentication solutions is crucial to meet the enhanced requirements and ensure the security of sensitive data. MTRIX is here as a trusted partner to help optimize your authentication systems and protect your company’s data. Contact us to learn more about our solutions and services.