All you need is to plug something hot-swappable in, let it get read into memory, and have it add a "salt" to make the hashes of the passwords virtually unbreakable. Unfortunately, when the system is rebooted, the device will need to be inserted once, which is a small pain. I guess that's why they sell the hardware fob. And this won't protect against more sophisticated virus-style attacks and physical theft where a laptop of stored passwords along with the fob is stolen.