PayPal has introduced a new level of security of the form of a key.  This piece of hardware generates a key every 30 seconds or so that you use to log into your account along with your username and password.

The cost for this device is $5.00us but those with business accounts pay nothing! They are also available outside of the U.S as well (I am not sure about all countries but Australian’s can get one).

For those of you who use PayPal you should really consider getting one of these. Besides, they say its better to be safe then sorry.

This page has all the details.