This service provides disposable one-time passwords for the following services gmail, microsoft hotmail, yahoomail, gmx, myspace and web.de
The idea here is that on a secure computer (your own!), you register with the service to generate a list of one-time passwords (maximum 40).
When you want to logon on a public computer, you don't trust, all you need to do is to go to kyps.net and logon using one of the one-time passwords.
The nice thing is, even if your password is captured, it cannot be re-used.
A nice touch is that you don't really need to trust kyps with your password at least not until you want to use it.
"Not providing your password: If you choose to not provide your password on the KYPS registraton page, then, on the next page, a Java applet is provided "
"This applet asks for your password and generates your one-time codes for you. Note that the applet generates your codes as ordinary text. You will have to copy-paste the codes into a text editor in order to print them.
If you would like to convince yourself that the applet does not leak your password, you may disconnect your computer from the network before providing your password to the applet. You are encouraged to select this method if you would not like to disclose your password to the KYPS server at registration time. However, keep in mind, that, if you use KYPS for logging into a website, the KYPS server will recover your password using the code you supply. Nevertheless, this mode of registration allows you to postpone your decision on whether or not to trust the KYPS server with your password until the time you will actually want to login from an untrusted computer."
Technically what the service does is to generate random pads (one for each disposable password you desire) of 144 bits. Your password is xored against these pads to form the disposable passwords. This last step can be done locally on your own computer using a simple java applet.
The server itself stores only the one-time pads but does not have your password. Only when you enter your disposable password, *then* the password can be reconstructed.
More technical details
here and
here