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New Weapon in eBay`s War on Phishing: The PayPal Security Key

eBay plans to offer PayPal users a password-generating key fob, which is expected to increase the security of the company`s online payment service. The key fob is the company`s newest weapon in its war on data-thieving phishing scams. By generating a new six-digit code every 30 seconds, which is entered by PayPal clients, who are interested in increasing their security, together with their username and password, when signing into the website.

"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," Sara Bettencourt, a PayPal spokesperson said. "This by no means is a silver bullet that is going to stop fraud. This is just another layer of protection." eBay and PayPal are often the target of phishing scams. PayPal customers are duped into providing their personal account information, which is later used by criminals to extract money from the victims.

The "PayPal Security Key" will cost PayPal users $5. Business accounts will receive the security key free of charge. PayPal has been testing the key for months now. The company plans to release the VeriSign technology based device to its 123 million users, later on this year. Similar key fobs are used by some large companies to limit the possibility of an authorized access to their resources, while allowing their employees remote access. Some financial institutions also provide their bigger clients with the keys in order to protect their financial security.