The PayPal SMS Security Key adds another layer of protection to PayPal accounts and uses the same security infrastructure as the PayPal Security Key, which generates a unique security code approximately every 30 seconds on a small electronic token. Members receive this code to their phones or tokens, and use the codes along with their usernames and passwords to sign in to their accounts.
This type of additional security, known as two-factor authentication, is used by leading financial institutions as an additional means to protect consumers and reduce losses from online fraud such as phishing attacks.
Both the PayPal Security Key token and the SMS security codes are now available to customers in the U.S., Australia, Austria, Canada and Germany. PayPal does not charge for delivery of security codes to a mobile device; however, the mobile provider's standard text messaging charges will apply. To use the service, customers need a mobile device and wireless service set up to receive SMS text messages.
The PayPal Security Key is part of the VeriSign Identity Protection (VIP) Network. As part of this network, consumers can use the security codes to protect their accounts on a variety of financial services and e-commerce Web sites like eBay. The new SMS functionality is provided by VeriSign’s Messaging and Mobile Media Division, which connects to more than 600 carriers and reaches more than 2.4 billion wireless subscribers in 150 countries.