Tuesday, 16 January 2007

PayPal Launch Anti-phishing Security Device

PayPal is planning to unveil a new device designed for protection against phishing scams. In most cases phishing scams utilize the name of either eBay or PayPal. In order to combat scams such as these PayPal is launching a new device to fight against the phishers, a USD 5 security key fob...

PayPal is planning to unveil a new device designed for protection against phishing scams. In most cases phishing scams utilize the name of either eBay or PayPal. In order to combat scams such as these PayPal is launching a new device to fight against the phishers, a USD 5 security key fob.

According to PayPal, the security key is a small electronic device that clips to your key chain and it calculates a new password every 30 seconds. Users who sign up for the new service and to use this device need to enter their regular passwords as well as the number displayed on the security key fob each time they log in to the online service. Because the numeric password changes so frequently, even successful phishers will end up with obsolete numeric passwords and will be unable to empty PayPal accounts.

Sara Bettencourt, spokeswoman for PayPal, if a fraudulent party somehow gets hold of a person's username and password, they still would not be able to get into the account because they don't have the six-digit code. This is just another layer of protection.

The system, based on security firm VeriSign's One-Time Password Token product, is now being tested by PayPal, and the firm will come up with a beta version for users in the US, Germany, and Australia in February.