Over at The Consumerist today they have a great article about a nice iPhone app by Verisign (only iPhone for now, doesn’t support iPod Touch) that lets you secure your transactions on Paypal, eBay, and a few other sites. There’s also a step-by-step guide on how to set up your PayPal account to work with the iPhone app.

Note: In the comments, tvmitch pointed out that you can also have PayPal send you a six-digit code every time you want to login in case you don’t have an iPhone, just click the option that Chris Walters marked with “not this one!”.