The analytic rule detects failed authentication attempts to the AWS Console specifically during the Multi-Factor Authentication (MFA) challenge phase. It does this by analyzing AWS CloudTrail logs, particularly focusing on the `additionalEventData` field. The presence of failed login attempts with MFA being leveraged signifies a potentially malicious action, where an attacker may be trying to gain access to an AWS account using compromised credentials. Although MFA provides a layer of security, an adversary's repeated failed attempts could represent ongoing attempts to breach the account, hence the importance of monitoring and responding to such events.