New security initiative at PayPal
Early this year, PayPal, the eBay online transaction subsidiary, introduced a new security measure for their customers in the form of a hardware Security Key. The key is a key fob device, rather like a pager. In use, a single button press generates a six digit password, which is entered at the user logon. In addition to the user name and original password, this provides users with two factor authentication for their account access. As an alternative to the PayPal Security Key a similar service is available that delivers the six digit number via a mobile phone.
PayPal Security Keys may be purchased from the PayPal website at a cost of £3. Signing up for the alternative mobile phone SMS service is free, apart from the mobile service providers usual text charges.
In an interview with Michael Barrett, Chief Information Security Officer PayPal, heise Security UK discussed PayPal's approach to security, including the new Security Keys.