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Online finance service introduces security tokens to tackle fraud

14/02/07 - Paypal, the service many people use to pay for items on eBay is to introduce security tokens to combat fraud through phishing. The token generates a random, six-digit code every 30 seconds which is then used as part of a user's login.
People logging in will still be required to enter their user name and password but Paypal believe this measure will prevent phishing attacks. Phishing is the practice where fraudsters use legitimate looking email requests for personal details so they can then illegally access accounts.

The token will be introduced to US customers first, with the UK due to be part of the trial later in the year. Paypal is owned by eBay and has more than 100 million accounts in 55 countries.

John Pescatore, a vice president at Gartner believes the Paypal have decided to introduce the token as their accounts are popular targets for phishing attacks. "PayPal has been one of the top targets for many years. They had to do something because they have been targets for so long," he said.

Community site Phish Tank listed Paypal and eBay as the first and third most popular targets for phishing attacks in January, respectively.

Using a security token is common in the business world and they provide an extra security layer when logging into corporate networks remotely. However some fraudsters have found ways to circumvent the security provided by the tokens.

The more sophisticated phishing attacks ask for the token passcode as well and then the attackers act on the information before the code resets. Programs which sit on a computer and monitor PayPal logins can also be used to break into an account.

Pescatore agrees that users should not believe that the introduction of a security token will immediately solve all of the security issues regarding information theft on the web. "All authentication with a token proves is that you have the token in your possession. I am concerned that businesses think that tokens are a solution to security problems. Consumers never know as much about security as they should," he said.

He was also perturbed by company charging $5 to it's customers for the security token. "If Paypal wants to increase security for its users, why are they charging $5?" he added.

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<a href="http://www.pulsewebhosting.com/news/online-finance-service-introduces-security-tokens-to-tackle-fraud/32/" title="Online finance service introduces security tokens to tackle fraud">Online finance service introduces security tokens to tackle fraud</a> Published Date: 2007-02-14 13:41:35

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