PayPal to improve security with Password Key Fobs

Posted on Monday, Jan 15 2007 @ 09:15 CET by Thomas De Maesschalck
PayPal announced it wants to improve its security by adding a password-generating key fob:
The small hardware device generates a one-time password every 30 seconds. When users opt to use this, they just enter the six digit code along with other personal information to login to the system. This system is said to hopefully reduce data-phishing scams.

PayPal spokeswoman, Sara Bettencort, stated that "if a fraudulent party somehow got hold of a person's username and password, they still wouldn't be able to get into the account because they don't have the six-digit code." On the other hand she also claimed that this system would not completely annihilate fraud but is "another layer of protection".

This type of system is already being used by large corporations to keep security checks on private corporate resources and banks and brokerages offer this feature to high net worth clients.

About the Author

Thomas De Maesschalck

Thomas has been messing with computer since early childhood and firmly believes the Internet is the best thing since sliced bread. Enjoys playing with new tech, is fascinated by science, and passionate about financial markets. When not behind a computer, he can be found with running shoes on or lifting heavy weights in the weight room.

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