PayPal to offer security key to user worried about phishing scams

eBay has said that they would soon add another security offering to the customers of their PayPal online payment service.

The company would offer a $5 security key which is an electronic device, designed to clip on to a keychain. It calculates a new numeric password every 30 seconds. Users opting for this device would be required to enter their regular passwords as well as the number displayed on the key while logging onto the service.

Sara Bettencourt, a PayPal spokeswoman added on this feature addition: “The key is really going to give users one more layer of security for their 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.”

The company said that they are currently testing out this feature within their employee base. It is expected to soon open for beta testing in major markets including United States, Australia and Germany. Business account users on PayPal would not be required to pay the USD 5 fee for this device.