Hands-On With the PayPal Security Key

By David Johnston
Contributing Writer, RealTechNews

Today I received my PayPal security key in the mail and I figured I would give my first impressions. The security key’s goal is to provide an extra layer of protection beyond the usual username and password. The advantage of the security key over traditional password authentication is that it changes constantly and is essentially “random” to the outside observer. Additionally, if you were to accidentally fall victim to a phishing scam, your login information would likely be expired by the time the scammer tried to use it (within 30 seconds). This makes it nearly impossible for anyone to illegally access your PayPal account, even if he or she has your username and password. In my opinion, you can never be too careful when it comes to keeping your accounts safe, so when I heard about the PayPal security key, I was quick to sign up.

The device itself is fairly small and made of cheap-feeling and hollow-sounding plastic. Considering the device only cost me $5 I wasn’t expecting something too fancy, so this was no surprise. It comes with a nice attachment which easily slides onto your existing key ring. It’s also very simple to use; it has only one button. When you press the button, a 6-digit numeric code will appear on the screen for 30 seconds. This is the key that you need to enter, along with your username and password, to log in to PayPal. After receiving the security key, I had to go to PayPal’s security key website and enter two consecutive codes as well as the serial number which is printed on a label on the back of the key. The process took about a minute since I had to wait 30 seconds in-between key codes but after that I was done. Now whenever I want to log in to PayPal, I must enter the code that shows up on my security key. It adds a few seconds to the log-in process but it’s worth it to me to know that my account is that much safer. As an added bonus, the key also works with eBay accounts, so I can use the same security key with both my eBay and PayPal accounts. That’s not too surprising given that eBay owns PayPal, but it is nice nevertheless to get this integration with both services. All in all, I’m very satisfied so far. I’ve tested the log-in process on both eBay and PayPal and it works perfectly.

We say: This idea seems to be catching on rather quickly, as E*Trade has also started an identical program for use with its services (but they’re charging $25). These devices are certainly no substitute for good security habits, such as using complex passwords (and keeping them secret), but they are an excellent addition for anyone worried about their online security. Given that hackers can also get your login information by hacking companies’ servers, I cannot recommend these devices enough. Better safe than sorry!