PayPal launch offline security token to protect against online fraud

Aims to stop Phishing

15 February 2007 11:57 GMT / By Stuart Miles

In an attempt to combat online payment fraud, PayPal has launched an offline security token for users who want that extra level of protection.

The new £5 token, generates a random, six-digit code every 30 seconds which is then used as part of the login process for the website.

PayPal hopes the token will defeat phishing attacks which ask for login details to gain access to accounts as customers will still need to enter their user name and password.

Customers looking for the extra level of protection can activate the feature under the profile section of your personal PayPal account, and from there, sign up to get the key.

Those worried about losing it will be pleased that you will still be able login to your account; only you will need to verify it with PayPal.

However some commentators are questioning the $5 fee

"If Paypal wants to increase security for its users, why are they charging $5?" analyst John Pescatore, a vice president at Gartner told the BBC.

The release of the tokens - which are free to PayPal business customers - is part of a deal following eBay's acquisition of Verisign's payment portal business.