Intending to boost consumer confidence in its online payment system — and t thwart the scourge of phishing attacks aimed at its users. PayPal will begin offering customers the option of using a password-generating device to beef up security.

The system will use a key fob, known as the PayPal Security Key, an electronic key that can be clipped onto a key chain and can generate a random six-digit security code every 30 seconds. In order to log onto their PayPal accounts, users will have to enter the code with their ID and password.

Business users will be given the key fob — made for eBay by VeriSign, free of charge; nonbusiness users will pay a one-time charge of US$5.

Posted: 01|16|07 at 9:54 am. Filed under: Auction News.