A portable electronic device for authentication and encryption communicably attached to a computer system is provided. The portable device may generate and automatically output authentication data for a plurality of accounts on request by a user. The output generated by the device is variable and customizable data that matches the data required by websites, applications, and other computer based systems to function as a universal authentication device. The device may include means to encrypt, decrypt, sign, verify and hash data including emails, images, documents and other files on request by a user. The device further having means to require physical user presence in order to generate authentication, encryption, decryption, signature, verification or hash data. The device includes a keypad having a plurality of buttons, a power and data connector, a data processing unit, a keyring hole, a light emitting diode, and a reset button.