One-Time Passwords Coming to Bank Card Near You

VeriSign is looking to strengthen credit card security by offering a new technology that would generate a temporary password directly on the corner of the card. Users would need to have the card in their possession in order to make purchases.

The company has announced a deal with Innovative Card Technologies that would assist interested banks and online stores with the addition of temporary password technology to their web sites.

With a second level of authentication necessary to make online purchases, the risk of identity theft is decreased. Even if the first password is revealed, the account is still locked as the attacker would need the temporary password that appears on the card.

"For businesses to inoculate themselves against online fraud, they must make it convenient for consumers to authenticate their identity with every transaction," VeriSign authentication services head Fran Rosch said.

Businesses and merchants participating in the system will also be able to share the codes that make it easier on consumers shopping at several participating merchants.

The first bank to use the cards would be announced this month, and those cards could be used at merchants participating in a currently available system that uses a separate device to generate these one-time passwords.

Merchants such as eBay, PayPal, Yahoo, and Charles Schwab already have agreements with VeriSign to use the device-based version of the service.