Credit: Getty Images Over the next few months, eBay will be offering its PayPal users a new tool in the fight against phishers: a US$5 security key.The PayPal Security Key is actually a small electronic device, designed to clip on to a keychain, that calculates a new numeric password every 30 seconds. PayPal users who sign up to use the device will need to enter their regular passwords as well as the number displayed on the key whenever they log in to the online payment service.“The key is really going to give users one more layer of security for their accounts,” said Sara Bettencourt, a PayPal spokeswoman.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. “If you fall for a phishing scam and give away your user name and password … if you used the PayPal Security Key, a third party couldn’t get to your account because they wouldn’t have this dynamic digit,” Bettencourt said.The Security Key could be an important tool for PayPal, whose website is frequently spoofed by phishers looking to steal user account information. The PayPal Security Key is being tested by PayPal employees right now, and the test will be opened up to beta users in the United States, Germany and Australia “in the next month or so,” Bettencourt said. Later this year, the company plans to begin promoting the devices to all PayPal users. News of the new PayPal system was first reported on AuctionBytes.com.PayPal users who want this extra level of security will be able to buy the devices for $5, but this fee will be waived for PayPal business accounts.PayPal’s device is based on VeriSign’s One-Time Password Token product, which is also being tested by Charles Schwab & Co. and U.S. Bancorp.ETrade Financial uses a similar system, based on RSA Security’s SecurID tokens.Over the past year, online financial companies have paid more attention to authentication technologies such as the VeriSign tokens, which add a second layer of authentication to online transactions. Adoption of these “two-factor” authentication techniques has been further boosted by new federal guidelines, which require stronger authentication for online transactions.Still, phishing attacks are becoming increasingly lucrative for criminals. Research company Gartner estimates that phishers cost U.S. financial institutions about $2.8 billion last year. The average loss per phishing attack was $1,244, up from $256 in 2005.-Robert McMillan, IDG News Service (San Francisco Bureau) Related content opinion Website spoofing: risks, threats, and mitigation strategies for CIOs In this article, we take a look at how CIOs can tackle website spoofing attacks and the best ways to prevent them. By Yash Mehta Dec 01, 2023 5 mins CIO Cyberattacks Security brandpost Sponsored by Catchpoint Systems Inc. Gain full visibility across the Internet Stack with IPM (Internet Performance Monitoring) Today’s IT systems have more points of failure than ever before. Internet Performance Monitoring provides visibility over external networks and services to mitigate outages. By Neal Weinberg Dec 01, 2023 3 mins IT Operations brandpost Sponsored by Zscaler How customers can save money during periods of economic uncertainty Now is the time to overcome the challenges of perimeter-based architectures and reduce costs with zero trust. By Zscaler Dec 01, 2023 4 mins Security feature LexisNexis rises to the generative AI challenge With generative AI, the legal information services giant faces its most formidable disruptor yet. That’s why CTO Jeff Reihl is embracing and enhancing the technology swiftly to keep in front of the competition. By Paula Rooney Dec 01, 2023 6 mins Generative AI Digital Transformation Cloud Computing Podcasts Videos Resources Events SUBSCRIBE TO OUR NEWSLETTER From our editors straight to your inbox Get started by entering your email address below. Please enter a valid email address Subscribe