PayPal is in the process of beefing up their security by offering a password key fobs to users. They have been a favored target of phishers for a long time. Recently, a security researcher found that about half of all phishing sites target either eBay or PayPal. Clearly, extra protection would definitely be a welcome addition to the standard password, and much needed.
This one-time password is a six digit code that changes every 30 seconds. It would work by users entering their typical login and password, and then additionally entering in the generated code which acts as an extra layer of protection. PayPal has been testing this with their employees for a couple of months now, and they expect consumer trials to begin next month.Users will sign up via a special website that will be available in the U.S., Germany, and Australia. Eventually they plan to expand this program to other countries as well.
This key fob will be $5 for personal accounts and free for business accounts. Even $5 for some of those personal account holders may be enough to keep them from using this protection. It would be nice if PayPal offered this as a free service for anybody that wanted to use it. As of the end of September, there were 123 million PayPal accounts! With that many accounts, just think about the number of transactions that are handled each day, but also the fraudulent transactions as well.
Back in 2005, eBay entered into a partnership with Security Technology Company VeriSign. This code generator is based on technology from them. Many financial firms already use this type of security, so it’s great to see PayPal taking an extra step to protect all of those 123 million accounts. The ones that pay the 5 dollars anyways…
News Source: News.com