PayPal is now rolling out a new program aimed at helping account holders make their account more secure. The PayPal Security Key is now available. The key has a small LCD screen on it that displays a numerical sequence that changes every 30 seconds.
Once you order your key, you will need to enter the six-digit code after you input your username and password. With this level of security added to your account, even if someone should get your username and password they would still be unable to access your account.
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This sounds like a good way to keep hackers out of your account. The only time I have ever had money taken from my PayPal account without permission it was PayPal that took the cash. Some moron broke a product I sold him, filed a compliant with PayPal and they took my money. The ensuing complaint by me did no good to get the money back, and I did not get the supposed broken product back from the buyer. I am guessing the security key will not stop this type of problem. via PayPal