How Secure is Microchip Technology?

California State Senator Joe Simitian is quite concerned about the level of security – or lack thereof – of microchips that are imbedded in government IDs as well as in credit cards.  In an interesting experiment, he invited a hacker to attempt to access the data contained on his government ID.  Using nothing more than a laptop, the hacker was able to skim the card and enter the state lawmakers’ garage as well as the Capitol after hours.  The Senator than asked the hacker to access information from nine other people within the hallways of the Capitol and the hacker did so with ease.

In response to this experiment, Simitian is pushing for five different bills that regulate the use of RFID and microchip technology, claiming that it is ”readily susceptible to all kinds of abuse.”  Among the bills regulating use, one in particular prohibits the use of these cards for three years on driver’s licenses and in schools.  In addition, one of the bills will require private firms that utilize this technology in credit cards to notify their customers of this fact and to give customers information about the security measures that they should be taking.

Of course, those in support of microchips are in an uproar as they fear that the legislation will slow down progress toward achieving increased security measures.  In addition, microchip technology is being used for a number of other purposes that do not necessarily involve the possible sharing of sensitive financial information.  For example, microchips can be used to prevent babies from being kidnapped or to monitor insulin levels of a person with diabetes.

Although those within the industry insist that the only example of this type of hacking with microchips has been with Simitian’s experiment, it is still cause for concern.  Microchip technology certainly has helped make things more convenient and has helped with improving security, but there are still a number of gaps that need to be filled if the security used to protect users of credit cards will stay ahead of the curve on fraud.

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