PayPal to Offer Password Key Fobs
Originally published at The Sanction. You can comment here or there.
eBay is preparing to offer PayPal users more security by adding a password-generating key fob. This will increase security of its online payment system.
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 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. Banks and brokerages offer this feature to high net worth clients.
The necessity of this system stems from the high amounts of data-phishing scams already taking place with eBay and PayPal. Fake sites are set up to spam unsuspecting shoppers in order to steal their personal information. Also, with eBay’s block on Google Checkout, the online auctioneer giant has to update the security features for PayPal.
The cost of the PayPal security key will be $5 for personal eBay users, but will be free for businesses. PayPal has been testing this system on employees for the past couple of months and plans on expanding into the public sector in the next month or so.
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