The invention provides a method of generating arbitrary numbers given a seed, characterized by providing a challenge derived from the seed to a physical token, receiving an initial response from the physical token, combining the initial response with helper data associated with the challenge to produce a stable response, and generating the arbitrary numbers using a pseudo-random number generator using the stable response as a seed for the generator. Preferably one or more of these pseudo-random permutations are used as one or more round function(s) in a Feistel block cipher. The generated arbitrary numbers may also be used to create a cryptographic key.