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FreeToken is an attempt to develop a free of charge alternative to other two factor authentication systems such as those marketted by RSA and Verisign.
SMSec is a free , open source, GPLed implementation of two-factor authentication via SMS (Short Message Service). It uses SMSD to "talk" to GSM modems, provides a flexible XMLRPC web-service for web-developers integrate SMSec into their web-apps.