Butterfield Bank is introducing a security token to its online banking customers to protect against identity fraud.

The bank, in a press statement, said the security token ? a small, physical device that displays a unique, randomly generated number that changes every 60 seconds ? will enable a new, highly secure and convenient log-in process for users of its Butterfield Direct Internet Banking.

The security token generated number is added to a Personal Identification Number (PIN) set by the customer, when logging in to do online banking.

The token number is valid only for one minute, a measure the bank said ensured ?an extremely high degree of protection?.

Offering one of the most secure log-in processes for online banking customers, the token does not require the customer to install any additional software or hardware and is highly convenient and easy-to-use.

The security tokens ?should protect our customers? finances from nearly all types of online identity fraud and will eliminate the need to use our virtual keyboard, which is currently a mandatory part of our log-in process?, said Susan Mylchreest, Vice President, Electronic Banking.

Initially, the security token will be rolled out to corporate clients and customers who have elected to send wire payments through Butterfield Direct Internet Banking. Butterfield Bank will be contacting customers directly when their security token is ready to be collected. Once this roll-out is completed, the security tokens will be distributed to other users upon request.

The security tokens are being rolled out over a period of several weeks. There is no cost but there will be a $35 replacement fee if a token is lost, stolen or damaged.