Phishing Defense a Key Factor in eBay-VeriSign Deal
Paypal will implement strengthened anti-phishing measures for up to 1 million users next year through a deal announced yesterday between VeriSign and eBay, which operates Paypal. While most of the headlines focused on eBay's purchase of VeriSign's payment processing unit for $370 million, the most widely-felt benefit of the deal will likely be the enhanced security for Paypal, which has been relentlessly targeted by phishing scams.
The agreement calls for eBay to buy up to 1 million two-factor authentication tokens from VeriSign. eBay and PayPal plan to begin the rollout of two-factor authentication to customers in 2006, including marketing and security programs designed to "promote customer adoption."
Two-factor authentication, which uses physical security devices to generate a single-use password, is being advanced as a way to reduce fraud losses from phishing. It is being used by a growing number of banks in both the US and UK. The token is typically a compact electronic card-like device which displays a number on a small screen. By entering this number into the online system when you login, you prove that that you are in possession of the card.
posted by Fergie @ 10/11/2005 06:55:00 PM
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