Tokens, Pass Codes To Shore Up Security For Securities Trade; Technology Helps Verify Users; E-Trade to offer the devices to customers with accounts valued at $50,000 and up.(INTERNET & TECHNOLOGY)

Byline: DONNA HOWELL

Security tokens, meet the stock-trading public.

Banks and brokerages around the nation for many months have noodled the idea of outfitting their customers with security tokens, for safer logins. E-Trade Group on Tuesday said it's become the first to actually do so, offering it as a free option to consumers with accounts valued at $50,000 or more.

A token is a device that fits on a key chain and displays a one-time pass code that changes every minute. Users type in the code, along with their regular password, to access an account. Such ultra-secure login methods might become routine in online banking and trading, many analysts say.

Tokens already are widely used in secure business settings. While few U.S. consumers use them yet, tokens are a bit more established with consumers in Europe.

E-Trade's tokens are a new, smaller variety from longtime authentication provider RSA Security. RSA debuted the first security tokens to U.S. consumers in September, in a novel program with Time Warner's America Online. Observers have been waiting for the first bank or brokerage to climb onto what might become a token bandwagon. Rising concerns about online identity theft have sparked more interest in use of tokens.

"I do believe we're the first (financial firm) to put this in consumers' hands," said Lou Klobuchar, president of E-Trade's consumer division. "It seems to me that financial services firms should lead the way."