The evolution of MFA security tokens
One variation on hardware tokens is the Bluetooth token from Vasco that sets up a secure communications channel with the authentication server. This way, man-in-the-middle attacks are thwarted, and you can also use one-time passwords to secure individual transactions. A user doesn't have to enter the password manually; they just push a button on the fob and the password is sent via a Bluetooth connection directly to the application requesting authentication.