PayPal launches anti-phishing security device

 

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By Rene Millman

Posted on 12 Jan 2007 at 12:41

Online payment firm PayPal is testing out a new key fob that it hopes will improve security for users of the site against phishing attacks and other types of fraud.

The PayPal Security Key generates a one-time use password every 30 seconds that users type in to gain access to the site as well as their normal username and password. The eBay-owned company device is based on Verisign's One-Time Password Token product and will cost personal users $5 (£2.50); business customers will get the fob for free.

A spokeswoman for the company told media that the key will give users "one more layer of security for their accounts".

The device is important to the company as it is normally on the receiving end of a significant number of phishing attacks designed to siphon off funds from unsuspecting users.

As RSA identified a new 'universal' phishing kit capable of importing pages from real websites and targetting potential victims quickly. The new key fob should provide extra protection against these new types of attacks.

Initially the scheme was only available to employees of the company but this has since been expanded to users in the US, Germany and Australia who sign up via this site.

The spokeswoman said the company will look at how popular the device is before rolling it out to the UK.