Multi-factor authentication enhances security by requiring users to provide multiple distinct forms of verification before granting access to a system or account. This layered approach typically combines something the user knows (like a password), something they have (like a smartphone or token), and something they are (like a fingerprint). By implementing multi-factor authentication, organizations significantly reduce the risk of unauthorized access and data breaches, as attackers would need more than just stolen credentials to compromise an account. This method adds an extra layer of protection, making it much harder for malicious actors to gain access to sensitive information.