Token system to guard e-trade

ID protection tool hopes to boost e-commerce sales

Secure online payments specialist VeriSign has launched a new identity protection and authentication service, which it said could raise consumers' confidence in e-commerce.

VeriSign Identity Protection (VIP) is based on two-factor authentication tokens, which could be bought and distributed by businesses such as banks, ISPs, e-traders or other firms wanting to ensure secure access to their networks by remote staff or customers.

When a user has logged on to a VIP-accredited site with their user name and password, they will be asked for a token ID and two consecutive one-time passwords, which will be transmitted over a secure connection to VeriSign.
People can use the service to protect sensitive information at any web site displaying a VIP acceptance mark, though they will need to complete the registration process for each site, said the firm's European product marketing manager, Mike Davies.

"This will make consumers feel safer shopping online and that's a big step, because people are being phished regularly," he said. "It's good for [online merchants] because if more people trust them, they will do more online business. And if you issue tokens with your brand on them, it associates your name with strong authentication."

Users will also benefit from fraud detection technology gained from VeriSign's recent acquisition of Snapcentric, Davies added.

The software can track where and when a token is used, build up user profiles and send alerts to the service provider or merchant if a transaction appears fraudulent.

"This is strong authentication backed up with proven anti-fraud and risk management techniques [similar to those] in the credit card industry," said Davies. The two-factor authentication tokens are available now and eBay has already agreed to roll out one million tokens to its big sellers, Davies said.

In other news, the value of e-commerce rose almost 29 percent in 2005, accounting for nearly half the growth in retail spending last year, according to a report by retail analyst Verdict Research. Consumers spent around £8.2bn on goods via the internet last year, while department stores took just £9.4bn in sales, the report said.