What factor distinguishes a "something you have" authentication method?

The distinguishing factor of a "something you have" authentication method is its reliance on a physical device or token. This authentication category necessitates the user to possess a tangible item that can be used to confirm their identity. Examples include smart cards, security tokens, mobile devices with authentication apps, or even hardware keys.

This method is fundamentally different from others like "something you know," which involves passwords or PINs, and "something you are," which pertains to biometric verification such as fingerprints or facial recognition. The "something you have" approach enhances security by providing a physical barrier to unauthorized access; even if someone knows the password (something you know) or has a biometric trait (something you are), they must also have the physical token to gain access. This multi-factor aspect substantially increases the security of authentication processes.