Radio Frequency Identification, or RFID, technology communicates data via radio waves between an electronic tag located on an object and a reader device. RFID’s sole purpose is identification and tracking. It may sound like a new technology, however it’s been around for almost 70 years when the British were looking for a more reliable way to identify enemy aircraft. Check out the RFID time-line at Emory University. There’s also a ton of information on none other than Wikipedia.

The obvious pros for this technology are bulk tag reading in an almost parallel fashion. Imagine you’re running a manufacturing plant with thousands of pieces of equipment, and your maintenance team can easily get real time information on all the equipment that they need to do predictive, preventative & corrective maintenance to that day. The other applications that RFID is being implemented are more consumer based, such as:

• Car Sharing Services, like ZipCar and AutoShare.
• Electronic Told Roads, like HWY 407 in Southern Ontario and various other cites around the world.
• Public Transit, think Persto on the Metrolinx GO.
• Asset management similar to the example above.
• Product Tracking, like Casio Chips or IT Equipment, even clothes and electronics.
• Credit/Debit Card touch payments, like ESSO Speed Pass and Master Card PayPass.
• Drivers Licenses, like the EDL in Ontario.
• You new Pass Port.
• Future mobile Phones will have an RFID tag with payment info essentially making the mobile phone your future wallet.

RFID technology is more wide spread than you probably thought, at least I found it surprising at how wide spread it’s usage is. So with all this information being read electronically, and the sensitive nature of some of the data stored on the tags, what security measures can be taken to ensure your data stays safe. The fact of the matter is if you’re using your credit card to pay for items purchased simply by holding it close to a reader, wouldn’t that create a bit of a security hole? Or more of a security Grand Canyon? This brings a whole new meaning to pick pocketing doesn’t it. You’re walking in a crowded area, and some one bumps into yo, says sorry and you think nothing of it. Then on your next credit card statement you notice that your card has fraudulent charges or worse is maxed out. The credit card companies themselves have admitted to knowing about the issue and working on ways to prevent it, but what can they do on the front-end to prevent fraud versus being reactive and calling you after a suspicious transaction has already been made. The fact of the matter is that they can’t, as well there was a story from CBC detailing how identity thieves could obtain your Billing address by intercepting your mail and with out even opening the envelope they obtain your billing address and read the sensitive data on the card or passport prior to you even getting it. Some tags can be read from several meters away and beyond the line of sight of the reader, as well.

That’s the bad news, the good news is that RFID Technology isn’t mandatory across the board in the payment industry yet and consumers can purchase aluminum sleeves, or wrap their cards in foil, to protect their secure info when not using the card. The foil creates a Faraday Cage around the RFID tag, to scramble signals to the reader. Near Field Communication (NFC) also shortens the distance that readers need to be from the tags, combine this with some type of pin and activation code and you may have a solution to the security gap. The key is to remember that no system is hacker proof and that with the proper knowledge one can protect their information to a reasonable level of risk. RFID & NFC are just the next iteration of the card swipe in a lot of ways.