PayPal signs up for stronger authentication

Online shoppers could get an extra layer of protection if they visit a VIP certified site

PayPal has become the first UK firm to sign up to the VeriSign Identity Protection (VIP) two-factor authentication scheme designed to give consumers an extra layer of security when transacting online.

The online payment firm is offering the service as a security key fob token to customers for around £3, or in the form of a passcode text message sent to a customer's phone every time they log in.

The service is simple to set up for retailers or service providers, requiring only a web services SSL link to VeriSign and small adjustments to the log-in page of their site, according to Mike Davies, director of identity and authentication services at VeriSign.

"VIP has been working for about one and a half years in other countries, with eBay, AOL and PayPal signed up in the US, so it's starting to gain critical mass," he said.

"It gives consumers an extra layer of protection when they interact online with firms they have an account-based relationship with."

Davies added that more big name firms are due to sign-up to VIP in the coming months, and that existing VIP consumers will be able to use the same password-generating token on any participating site.