If you are a regular PayPal user but are concerned about the integrity of your account, then you may want to consider an extra layer of protection by using something called the PayPal security key. (http://www.digitalhome.ca/2010/03/make-your-paypal-account-more-secure/)

I use one of these keys and highly recommend them. For $5, it ensures that someone with your PayPal password can't get access to your account

sounds like a good idea, especially if you have entered a lot of banking information into your paypal account.

is there a shipping cost ?

I don't recall paying any shipping cost but that could have changed. Search on "security key" on the PayPal site and you will get information on it along with an FAQ page.

I'm surprised at how many people are unaware of it but I recommend it to anyone who uses PayPal a fair bit.

Great idea!

I'm going to sign up for one right now.

UPDATE: $5.00 Canadian, no shipping fee. Takes about 10 business days according to the site.

It looks like you can use the same security key for eBay - has anyone tried this?

Doesn't eBay belong to Paypal somehow? If so, the key should work with them as well.

I don't recall paying any shipping cost but that could have changed. Search on "security key" on the PayPal site and you will get information on it along with an FAQ page.

I'm surprised at how many people are unaware of it but I recommend it to anyone who uses PayPal a fair bit.
thanks. ordered mine.

It looks like you can use the same security key for eBay - has anyone tried this?
I have the security key attached to both my eBay and my PayPal account. Got it for $5, free shipping, well worth the investment.

I use the SMS option. To login to the account, you first have to get an SMS sent to your phone with a one time code, and then enter that code during the login process. Works pretty well, and doesn't cost anything.

I use the SMS option as well. Just don't need anything key fob to have to put somewhere.

So with this key (which I ordered last night, thanks to DHC), does this mean if someone got a hold of my password and nickname, they wouldn't be able to go nowhere unless they had the key?

What if they ordered a key as well, is the key attached to your nickname or I can use anybody's key to get in my paypal account?

I find it funny that Paypal makes you pay to have your account more secure because they can't keep their site secure. I wonder how long it will be before banks start making you pay to get your bank account more secure?

does this mean if someone got a hold of my password and nickname, they wouldn't be able to go nowhere unless they had the key?

Correct. In addition, to your password and username, you are required to enter the 6 digit code on your security key. In the case of rpr and JohnnyCanuck, they have a security code sent to them on their phone which eliminates the need for the security key. Either method is good.

The security key is tied to your account so you can't use it to access someone else's account.

I wonder what happens if someone has mulitple accounts that use this? Is it possible to use the same key with multiple accounts?

BTW, I first came across these in conjuction with VPN access for a customer, when I was at IBM a few years back.

This type of two-tiered authentication is very common in the corporate and banking world in terms of providing added security for remote users accessing internal networks and any type of (web) portal used for intra-bank financial transactions; it's only recently that this technology is starting to make its way to consumers.

The only problem I see is that you don't want to be carrying around a unique key fob for every secure site you have an account for - a keychain would get pretty unwieldy in no time! One solution is software tokens, but that presents another set of challenges.

Thanks Hugh for the info.

Having been defrauded in December, I am more chicken than ever when it comes time to do online transactions. Anyway to get more secured is now welcome in this family.

I have had these since they were first made available in Canada. I have one for paypal and one for ebay. I guess they must have changed things, because at one time you could only use each key for one site only, not for both sites at the same time.

The nice thing too is if they ever stop working they will replace them for free. $5 really is not bad when you think about it, they are basically just covering their costs and not making a profit off them.

It really does make a lot of sense to be using these, I have had my ebay account hacked before so this just adds another layer of security.

I find it funny that Paypal makes you pay to have your account more secure because they can't keep their site secure. I wonder how long it will be before banks start making you pay to get your bank account more secure?
It's not about Paypal being poor at maintaining security. While security breaches can happen inside a company, the fact that many users set up weak passwords and fall for phishing scams doesn't help things. Security is only as strong as the weakest link, and that's why Paypal is giving users the option of signing up for two-factor authentication.

Thanks Hugh, I had never heard of this little device, I now have 2 on order and look forward to continue using Pay Pal and E-Bay with the added security these will provide.

I use these for my work VPN. Provides very high level of security.