Sonet Journal

Digital Identity on the Horizon? Paypal introduces security key-fobs

Sunday, January 14th, 2007

I received a link from a friend and colleague Alan Hill to a news story on CNET about Paypal who will be offering some extra security to it’s users through a key fob that will generate a one-time password in the form of a six digit code every 30 seconds.
The “Paypal Security Key” will cost $5 for personal Paypal accounts, but will be free for business accounts… Paypal has been testing the device with employees for a couple of months and plans to start trials with customers in the next month or so…
The key fobs are based on technology by VeriSign whom eBay has had a security partnership for the last couple of years. eBay believe this will be another layer in it’s security to protect from phishing incidents.

It’s not an original idea the use of key-fobs has been around for a while now on other security protected areas such as large corporate IT firms that require it’s staff to sign in with a digital code. What is interesting enough is that eBay has now picked it up, while they claim it is to protect customers from the ever-growing and unstoppable phishing attacks it does pave-the-way for future digital identities of all Internet users.

Pros and Cons of Digital Identity
Will there come a time when all users of the Internet will have to sign in online with a digital signature, the pros for this are it would help in combating cyber-crime, virus deliveries, spam and hacking as the footprints would be traceable back to the users unique signature. The cons are that it would be an invasion of privacy as it would be easy to track a users habits online, know when a particular user is online and what they view etc. I know this is a hot and contentious debate over the future of security and citizens rights to privacy.

It’s all becoming a bit Orwellian and it’s easy to see why one is torn between preventing crime online with the right to remain anonymous.
————————
Related Reading

Paypal to Offer Password Key fob to Users - CNET
The Politics of the Internet - Search and Go

• 
• 
• 
• 
• 
• 
• 
• 
• 

This entry was posted on Sunday, January 14th, 2007 at 6:05 am and is filed under Internet. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

5 Responses to “Digital Identity on the Horizon? Paypal introduces security key-fobs”

1. IanP Says:
   January 14th, 2007 at 9:32 am

   I can also see pro’s and con’s for this device.
   Where you have a controlled office environment, I would say that this type of device is of value and essential in keeping the corporate data confidential. However, on the wider internet, this argument turns the other way.

   Not only is a physical device that can be stolen and used on your behalf, but it also means that there would be a central repository with the details of everyone who has one.
   What protections would be in place to protect that data, and to stop the mis-use of that data. How would it square up with national data protection laws.

   Whilst it may prevent unwanted spam, it would be stupid not to assume that there would be a mass of targeted advertising, based upon user preferences gathered by usage monitoring.
   Personally, I would rather keep username and password details in my head, than on a marketing company database.

2. Dave Beck Says:
   January 14th, 2007 at 9:55 am

   Ian,

   You make some extremely valid points, however I don’t think privacy is the biggest issue confronting the online community. I am much more concerned with illegal activities and security general over the information that a marketing company may be able to obtain.

   Online advertising is here to stay and I have absolutely no problem with legitimate companies targeting their ads to topics/products that I am interested in. What I do have a problem with is the unscrupulous criminal element that are more interested in securing information about me to commit any range of fraudulent activities.

   I applaud companies such as PayPal/eBay for introducing technology to keep our details and hard earned cash in safe hands.

3. IanP Says:
   January 14th, 2007 at 3:04 pm

   If paypal are seen to be an extremely responsible company with our data, I would agree that the benefits of such a system are worthy and worthwhile.

   However, when a company like Tesco has more information about me than the UK govt, refuses to adhere to the FOI or the safe harbour laws in the U.S. and uses that information to make money by reselling it to whoever is willing to pay, then I do have a big problem.

   Dont get me wrong, I am not a luddite, but an advocate of technology where ever it can be use for the betterment of all, but only if the right safeguards are put in place, AND are enforceable.

4. Vincent Says:
   January 15th, 2007 at 5:03 am

   Dave & Ian
   Thanks for the responses, both are valid points as outlined in the first post.

   I agree with Ian about having our data protected responsibly. On the other hand Dave, you also hit the proverbial nail on the head when you stated:

   “Online advertising is here to stay”

   Agreed, it is and you only have to look at some of the larger ad and marketing companies to realise that we are being targeted over our surfing habits and they know what we want and what our interest are. The problem begins when they start selling that data and keep it in unsecure areas that either can be hacked or is open to employees to abuse.

   As mentioned before it will become an issue of contention when the current technology and laws start to demmand that we all carry an digital identification ‘fob’ I am so bothered about it as long as the safeguards are in palce to protect this information and it cannot be accessed by Govt or the private sector for their own means.

   Having said that - I am sure I’ll end up eatng my own words

5. IanP Says:
   January 15th, 2007 at 11:20 am

   Data is Knowledge, Knowledge is Power.

   http://www.unrealid.com/

   perhaps this may sway the concerns argument a little. Your protections have just gone out of the window.

Leave a Reply