Smart Cards

Applications and uses for smart cards

Smart cards are capable of many different applications. Right now many of the uses have not been implemented in the US, but make no mistake, they are on their way.

Financial Industry

The financial industry has the most widespread adoption of smart card uses. In Europe, many debit and credit cards have smart card technology. Also banking networks have launched electronic purse projects. The US is relatively behind in adopting the different financial uses for smart cards.

Other Applications

Smart cards can also be used for Internet authentication, retailer loyalty programs, physical access, resort cards, mass transit, electronic toll, product tracking, national ID, drivers license, passports, and biometrics.

Advantages and Disadvantages

Smart cards are very portable and take the form of the familiar credit card. Where the typical magnetic card falls short, the smart card picks up. There are, however, disadvantages that make smart card implementation difficult, especially in the US.

Advantages

Security

Chip is tamper-resistant

Information stored on the card can be PIN code and/or read-write protected

Capable of performing encryption

Each smart card has its own, unique serial number

Intelligence

Capable of processing, not just storing information

Smart cards can communicate with computing devices through a smart card reader

Information and applications can be updated without having to issue new cards



Disadvantages

Sensitive information

People tend to be careless with regard to PIN’s and Passwords

If tampered with, much more information will be at risk

Money Crimes

Money Laundering

Counterfeiting

Tax evasion

Other

Adapting to new technology (terminals and schemes)

LOSS OF PRIVACY


http://komar.cs.stthomas.edu/qm425/02s/Dammann1.htm

"Spinning, whirling,
Still descending
Like a spiral sea,
Unending..."

Smart cards, unfortunately, have been overtaken by technology. It does happen. Basically the smart card guys dicked around so long trying to sell the retail industry on spending billions to update their old Verifone XL readers to smart card reader that they've become obsolete.

There are already completely portable financial portfolios available -- using portable USB memory sticks with a combination of software on them, you can carry around your entire financial life with you and it's as secure as it would be in Fort Knox due to the sophistication of encryption.

The one that I designed has a stripped down version of Windows on it, along with a JAVA client that essentially has a "public key" like encryption pattern on it. I can plug it into any computer with a USB port and Internet access, no matter what OS the computer uses, what sort of connection etc. The banking client contacts the bank, where the "private key" end of the account info is stored, join with it, and I can handle my business, then close it down and it's locked up tight.

If I lose the stick or if it is stolen or damaged, the information contained on it is useless -- the entire thing is protected by GPG encryption and can't even be loaded up without the main password, and then once you're in there is the seperate key for the banking module, which is protected by a seperate encryption algorithm and password. As long as I have a backup of the "public key" I can lose all of the sticks I want and just go down to Best Buy, spend a couple of bucks and buy a blank stick off the shelf, then reload it, log into the system and change the public key for peace of mind.


The programmer that did the Java for the banking module also created a generic sportsbook template and we have been working on the ideaof a "portable sportsbook account" based on the same concept -- you plug it into any computer you like, and there is never any record on the host system of havin accessed a sportsbook because the entire procedure is handled on the "stick" and not on the host's resources. Very convenient for people who want to gamble from work or a public library or just don't want their spouses knowing their business.

If any of you books out there would like to see a sample of the finished product, let me know and I'll e-mail you.


Phaedrus

where theres a will theres a way when it comes to this kinda stuff

<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by bigboydan:
where theres a will theres a way when it comes to this kinda stuff<HR></BLOCKQUOTE>