Additional protection for your PayPal funds

[Steven Carl Kelly]

You may recall that not too long ago I reported that my brother's PayPal account had been compromised and that he had been taken for well over $1,000. The crooks accessed his account through the log-in and transferred funds out of his business checking account (the account tied to his PayPal). So even though he had less than $100 in his PayPal account, they were able to access a chunk of his business checking balance due to the link.

Transferring money out of your PayPal account and into your bank is not sufficient protection from fraudsters and crooks.

It took quite some time (weeks), but his funds have now been restored. As a part of that process, we also learned that PayPal offers an enhanced level of security known as the "PayPal Security Key". This security key system can use a hardware token or a mobile phone for an additional layer of log-in security.

A hardware token is a small electronic device that you carry with you. Most come in the form of a "keyfob" which can be connected to your keychain. The keyfob generates a new 6-digit number every 30 seconds and you use that number in addition to your login ID and password to enter your account.

The cost? Just $5.00 for the security key hardware token, the mobile phone security key setup costs a big, fat ZERO dollars. All you have to do is activate it, and there are no ongoing costs.

To me, having seen my brother go through this recovery process makes adding this additional layer of security a true "no brainer". I encourage you to check into the added protection.

Here's a short demo:

securitykey_us

[Desmond Ong]

Wow. I never know there's such thing.

Thanks for the info. I am willing to invest $5.00 for that protection.

[cypherslock]

Awesome info. I've just ordered mine. You rock. Thank you very much!

[Darren Mothersele]

Does anyone know if this is available in the UK?

[Angela V. Edwards]

Thank you for this great information.

[Steven Carl Kelly]

Originally Posted by Angela V. Edwards

Thank you for this great information.

My pleasure. I hope it protects you.

[Gary M.]

Thanks for sharing this - I had no idea a security key existed! I'm going to get one for myself because I've always been a little worried about the amazing things hackers can do.

One of the most useful threads I've ever read!

[googleninja]

yeah I think it will be useful to everyone of us... and thus prevents the "paypal horror stories" again

[AVSAdministrator]

Thanks

I always used a separate account to funnel monies into from paypal; then transferred it to an on line account. Keeps my paypal and bank account empty. (at least the ones linked to paypal.)

Hate hearing these stories.

[Steven Carl Kelly]

Originally Posted by AVSAdministrator

Thanks

I always used a separate account to funnel monies into from paypal; then transferred it to an on line account. Keeps my paypal and bank account empty. (at least the ones linked to paypal.)

Hate hearing these stories.

Yeah, I do the same thing. My brother didn't, however. At least he got his money back (it took a long time) and now he has the token so he's better protected.

[trom771]

Great information! I had about $500 taken from me in the past...I just ordered this key for both of my Paypal accounts.

Thanks!

[fullmatrix]

One more thing, never save you paypal username and password in your browser 'remember password' feature. Spyware can see it.

[Steven Carl Kelly]

Originally Posted by fullmatrix

One more thing, never save you paypal username and password in your browser 'remember password' feature. Spyware can see it.

I never save it in the browser for ANY site.

[Andrew Maule]

Just got mine a week or so ago. It's really nice. Definitely an extra layer of protection. I could post my password on a billboard and not have to worry about anyone touching my money !

[PhilMo]

Anyone used this in Australia?

[rondo]

Originally Posted by Phil Hosemans

Anyone used this in Australia?

I haven't ordered one yet, but it is available to Aussies for AUD$7.50


Andrew

[kecuk2007]

thanks for information

[MikeStronghill]

Hi, thx for the info. I just went to the link that you listed and I has a couple of questions that they didn't address. What if you loose this device? How would you get access to your accounts and might you have to wait for days or weeks to get through this?

The device is small and looks sealed, do you know about batteries and replacing them or do you just throw this away if the battery dies?

Since your brother bought one, I was hoping that you might have some answers for me.

Thanks,

Mike

[sublerjr]

Thanks for the info. I like warriors like you.

[SeanSupplee]

Very Nice! Had No Idea but going to put this in place right now! Can Never be to safe

[AdiPurush]

nice info, very useful. thanks for sharing

[Richelo Killian]

For people in the UK, I am not sure if the hardware key is available here, but, I have been using the mobile phone pin for months now. Works great!

[Dee Scofield]

THANK YOU for posting this information. I regularly transfer money out of my PayPal account just in case it gets hacked, but after reading your post it's obvious why that isn't a foolproof protection. I just ordered a security key, and now I can hardly wait until it arrives in the mail.

[Markus Nimocks]

I can't imagine why Paypal doesn't promote this better! Thanks very much for this information. I'm also going to share it on my blogs.

[krishananda]

I've been worried about these kind of things, thanks, I'm ordering mine now.

Just for precaution also, I always use virtual keyboard to type in my password and username in paypal, never knew when someone installed keylogger in your system.

[Kim Standerline]

Yes definitely

Originally Posted by Gary M.

One of the most useful threads I've ever read!

I wonder if you can get them in the UK

I'm also surprised PP doesn't advertise it more widely, think of the headaches it would save them

[edpudol1973]

Wow this is cool, is it available any where in the world. I want to order also but I am from Philippines

[MikeAmbrosio]

I've been using the hardware key for about a year now. Sometimes it's a pain if I am traveling and didn't bring the key, but it's well worth the extra security.

Highly recommended.

[simplevisions]

I worked for a major IT outsourcing company and we used these devices whenever we were out of the office and dialled-in or worked from home.

It's a shame they're not available in the UK.

Ali

[thebrokenbox]

I've actually had one of these keys for quite some time now, it was probably the best thing I ever spent $5 on. I was always weary that I would get my PayPal account hacked so I figured $5 was nothing to invest in to protect hundreds of dollars from my bank account. Only thing that is annoying is if you access PayPal without the key but it's just part of the security so I'm willing to sacrifice a little bit for security. I highly recommend everyone get one of these.

[Steven Carl Kelly]

Originally Posted by MikeStronghill

Hi, thx for the info. I just went to the link that you listed and I has a couple of questions that they didn't address. What if you loose this device? How would you get access to your accounts and might you have to wait for days or weeks to get through this?

The device is small and looks sealed, do you know about batteries and replacing them or do you just throw this away if the battery dies?

Since your brother bought one, I was hoping that you might have some answers for me.

Thanks,

Mike

Sorry, Mike, I don't have the answers to those questions since he just received the hardware token the other day. You could e-mail PP, I'm sure they'll provide you the info.

[ppc4profit]

Thanks for the heads up - this is a great way of reducing risk on a PayPal account.

I'm in the U.K. so I could only go for the SMS protection but that will do me fine.

If you try to set up the mobile phone facility make sure you go for the "PayPal Security Key" option in the PayPal profile screen and NOT the "Phones and Mobile Payments" option as the latter enables you to use the mobile phone to make payments - I got this wrong first time I tried it!

[grumpyb]

THANK YOU for posting this information. I regularly transfer money out of my PayPal account just in case it gets hacked, but after reading your post it's obvious why that isn't a foolproof protection. I just ordered a security key, and now I can hardly wait until it arrives in the mail.

In Australia the biggest risk seems to be paypal itself. There are many forums which give negative reports on Paypal and how the paypal system can and does support other fraudelent ( In the opinion of posters ) activity on line.
The major problem is lack of effective communication with paypal in the event of a problem. They do not have an office in Australia so you are forced to speak with someone in another country who often has no knowledge of Australia or the trading conditions here. Sometimes it is even difficult to understand what their operator is actually saying as there are some major diffrences in the English launguage used in Australia to what is used in some parts of USA and they seem to hink we are another state of the USA.
Paypal have refused to sign the agreement regarding code of practice which is used here in Australia by Australian Banks so they see them selves as a law unto themselves. Recently EBay tried to force paypal on the Australian public as the only method of payment to be used and it took the ruling of a goverment department ( our ACCC ) to stop them.
I use paypal where I have to but to be under any misaprehension about how safe it is IMHO is unwise.
It is without a doubt a great and easy system BUT I would exercise extreme caution when operating with paypal because it is not just about having a digital token to keep your money safe.
Remember paypal itself is not a Bank it is just another company and the mere fact that they hold your funds in another account then take several days to give it too you gives them access to millions of dollars which is in effect NOT PAYPALS its yours.
Some of the biggest companys in the USA are falling down and lately its been some very high profile organisations who no one would have suspected would get into trouble
For my websites I now use paymate an Australian company who have an office in Sydney and can be contacted by telephone. You can even speak to the same person each time you call. its a bit more expensive than paypal BUT the best part is your funds are cleared automaticaly in to you bank account within 24 hours so they dont profit by holding your money.
IMHO its not just a digital token needed to stay safe with paypal you need to exercise extreme caution here.

[reliance77]

Good information, thanks for sharing.

[mywebwork]

Excellent information, thank you for sharing it.

Bill