Aren't Smartcards supposed to be very secure?
Yes.  They are supposed to be.  So was your cellular phone, pager, e-mail, FAX, and credit card.  But then, who hasn't heard of clone phones, free pagers, intercepted FAX's and e-mail and fraudulent credit card use.  Despite the earnest attempts of manufacturers to provide secure products to their customers; hackers, criminals and the Government have always found ways to side step the security measures.  Smartcard hacking kits are already freely advertised on the Internet for "educational" purposes.  The most popular target of these kits has been smartcards used in conjunction with Satellite TV decoder boxes.  As these cards begin to hold more valuable information, the temptation to break into them will increase.

Smartcard manufacturers and service providers are quick to point to PIN numbers, encryption and biometric techniques as evidence of the high security of these cards.  If you surf the net, you will see one manufacturer after another bragging about how secure their product is.  We recommend you consider the source and how much they stand to lose if you don't believe them.  The truth is that the factories where these cards are manufactured are more secure than most Government facilities because the card manufacturers are terrified someone might steal the operating system that must be installed onto the chip.  Some companies have dedicated entire departments to breaking into their own smartcards in order to find their weaknesses before their customers do.  In the end, all of this sensitive, valuable information must pass through the hands of human beings which are all subject to corruption.

Let us be clear.  We are not claiming contactless smartcards are not secure.  The chip and card manufacturers are very sincere in their attempts to make their product as secure as possible, if not only out of greed.  And they may indeed find a way to make them absolutely secure.  But there is ample historical precedent to believe these cards will experience periodic breeches of security as one encryption method after another is compromised by hackers or internal corruption.  Even if these cards someday become impenetrable to hackers and criminals, there is still the Government..............
 
 

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