Are Smart Cards Safe?

Smart card technology has grown over the past few decades. Especially in Europe, these cards are used by just about everyone. The cards are plastic and the size of a credit card and contain an embedded microprocessor.

The security of these cards is important because of what these cards are used for. Smart cards are found in mobile phones, where they’re called SIM cards. In a phone, the smart card contains the users phone number and account information. Smart cards are used in identification like government issued ID cards and in banking cards like ATM and debit cards. The cards must be secure for this portable storage system to be effective. And, thankfully, the cards are considered secure.

Smart cards are safe because of several processes and methods. Data integrity makes sure the data is correct and the transaction is legit. The details of the data and transaction are examined. This occurs with electronic cryptography. In electronic cryptography, data is assigned a unique identifier, like a finger print. If there’s an attempt to change that identifier, red flags are issued throughout the information management system.

Authentication inspects and identifies the people involved in a transaction or data transfer. Authentication might occur through matching electronic signatures. The strength of authentication systems is important to the security of a card.

Several security methods occur with various costs associated with them. Having a password associate with using a card is cheap while requiring digital signatures to be approved before the transaction is approved is costly. So, not all security methods are always in practice. It depends on how important the action is. For example, larger purchases on a credit card might require matching signatures while small purchases might require a person only put in a password or PIN.

Smart card security is important to the information storage method. Without security, smart cards are a failure, but smart cards are considered safe overall.

Staying Safe While Playing at an Online Casino

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Every year, if not every month, there is a new technology to learn about and catch up with as everyone adopts the new standard. Often, it’s beneficial to look at what’s going on in Europe to gain an idea of what might be coming down the pipe. Europe, for reasons probably related to a less red-tape gummed system, has been able to adopt some technologies at seemingly light speed as compared to what America has managed. Take cell phone adoption rates, for example. Europe was quick to implement one standard upon which all cell phones would operate, and that allowed all phones to cross connect between networks. Baffling as it might have been, America did not adopt the same methodology, which stunted the speed of cellular technology. It’s as if the country shot itself in the collective foot with that particular stumbling block.

Similarly, Europe now leads the way with SmartCards. They are a system similar to that proposed by Oracle’s infamous Larry Ellison, who suggested following 9/11 that a smart card system might help to thwart future terrorist attacks. The SmartCard requires input of correct data to be used and without it, the card is pretty much useless. This prevents thieves from getting anywhere fast at your, or your credit card company’s, expense.

SmartCards have all the hallmarks of an important technology that will be adopted by Americans in the future. They’re simple to use but safer than current methods. They allow for unprecedented intelligence in a plastic card, so that the next time you’re playing at an online casino, you can be sure no one on the other end of the transaction is merely writing down your account number for future use. It’s about time Americans caught up to the seemingly more tech-savvy European minds. Adopting the SmartCard system quickly would be a step in the right direction.

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SmartCard: An Overview

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Smart Cards are plastic credit card sized cards that contain an embedded 8 bit microprocessor. Smart cards are portable storage technology. These cards are in wide use in Europe and have been since the 1990s, but have just recently grown in popularity in the United States.

A smart card might look like a regular credit card but on the inside it’s much different. The fact that it has an inside and is not just a flat card makes it different. The card contains the microprocessor. This microprocessor is covered with gold foil flakes. This chip replaces the magnetic strip portion of a regular credit card for information storage and sharing.

The cards are used almost universally in Europe for banking. A smart card might be used as an ATM, credit or debit card. The card can be inserted into a reader like an ATM machine much like a typical magnetic stripe credit card. But, smart cards don’t always have to make contact with a reader. A smart card can also be simply waved in front of a reader and share information using an embedded radio antenna. These types of cards are called contactless cards.

In Europe, smart cards became popular because they were used for mobile phones. Mobile phones contain a smart card called a SIM card. Some US carriers use SIM card technology as well, but it’s not universal as it almost is in Europe. These smart cards contain the subscriber’s telephone number and account number meaning a user can switch phones by simply switching out the SIM card and putting it in the new phone. A smart card in a phone isn’t as large as a credit card but only about an inch square and also made from a slightly different plastic material that looks and feels more like cardboard.

Uses of a Smart Card

In Europe, most people have at least one or two on their person at all times. In the United States, they’re becoming more popular. Smart cards are credit card looking portable storage devices used in many applications.

These smart cards contain an 8 bit embedded microprocessor that not only stores data but also functions to communicate with a reader and does self encryption as a security technique. The cards can contain pages and pages of date or just contain one account number.

Smart cards were invented in the 1960s but weren’t used until the 1980s when they were marginally used as pre paid phone cards to pay for pay phone calls. It wasn’t until the 1990s and the rise in the popularity of mobile phones that smart cards really took off. Europe embraced the cards and used them widely for mobile phone uses. In a mobile phone, the smart card holds the subscriber’s account and phone numbers and allow a user to keep the same phone number and just use a different phone by simply swapping the card out.

But, smart card uses aren’t limited to mobile phones. Smart cards are widely used in the banking industry. Smart cards are used as credit cards, where a gold foiled chip contains the account information and is read by insertion into a reader or by simply proximity to the reader. Debit and ATM cards can also be smart cards.

The health care industry uses smart cards as well. In fact, every German citizen has a smart card. The health care coverage ID card in Germany is a smart card. Smart cards are also used in health care as ID badges for employees and to hold patient medical record charts for easy transportation.

Some other common uses of smart cards include loyalty card programs, identification, satellite television, and computer security systems.

What are Smart Cards used for in Europe?

Smart cards look like plastic cards and sometimes act like a credit card, holding financial data, but do much more as well. Smart cards hold an embedded microprocessor and were invented in the 1960s, but not used until the 1980s.

In the 1990s, Europeans started using smart cards regularly for mobile phones. In a mobile phone, a smart card is called a “SIM” card. The card holds the phone number and account subscriber information. In most parts of Europe, users don’t have a contract with a phone provider but add and use minutes through the smart card in the phone.

This type of technology just recently started taking off in the United States with some users using the smart cards in mobile phones. But, other uses have come about like using the smart cards for credit cards. The advantage of a smart card is that the information is encrypted within the card and in general considered more secure than magnetic stripe credit cards.

In Europe, the cards are used as credit, debit and ATM cards as well. The cards are also used for identification as well. The card can hold information in the chip about a person like address and identification numbers.

The cards have many health care applications. In Germany, every person has a smart card for health care coverage. The cards are also used for identification in health care as employee badges. The cards can hold a lot of information and can even be used to hold health records.

Smart cards are in wide use in Europe. The use of smart cards is growing in other parts of the world, including the United States. Europeans use smart cards for identification cards, mobile phones and for banking cards. Smart cards will continue to grow in popularity because they offer a secure reliable way to share information.

What Is a Smart Card?

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Smart cards have become increasingly popular, especially in Europe. This technology gets the name “smart” for a reason. It’s an easy way for information to travel. Smart cards are used in many European cell phones.

Smart cards replace the strip part of a credit card for holding information. The smart card includes a chip that holds information like account number and other information. The information can be extracted from the card with one of two readers, a contactless reader and a contact reader. A contact less reader reads information in proximity. Simply place the smart card near the reader and all information will be transfered. A contact reader means a user places the card in a device, sort of like swiping the card through a credit card reader.

In Europe, users use the smart chip to pay for GSM phone service and to add credit to a phone. The smart card is inside the phone and adding funds is just a matter of transferring information onto the card. In Europe, most users go with this pay as you go cell phone method over the option many American’s chose, signing a contract with a cell phone provider.

Besides being found in smart phones, smart cards are also common in credit cards and identification. Smart cards are also used in health care. In health care, the smart card is used in employee badges and for portable medical records.

Smart cards can carry a large amount of information in a tiny space. Besides interacting to share information, a smart card performs internal tasks like encryption.

Smart cards are increasing in popularity for the applications they allow like easy pay as you go cell phone service and for easily transferring large amounts of data in a small space, like portable medical records or credit card information.

A Statistical Look at Smart Cards and Cybercrime

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More and more people in the world are switching to a cashless form of payment, and the most common cashless forms happened to be connected to plastic. Whether it is a smart card or a credit card, those little thin strips of plastic have everything a person needs to buy anything from a gallon of milk to a new car.

With walking around without cash has some attractive properties, there is a dark side s well. According to the Reserve Bank, electronic payments have increased by 35 percent while check use has decreased by three percent. Those numbers may not make an impression, but the next one should. Credit card fraud for a single year reached almost $150 million. One cyber gang netted $70 million by stealing from a variety of mid-sized businesses in America. Authorities believe the gang is actually located in Easter Europe.

This large amount of money indicates that things need to change; it’s simply too easy for thieves to hack into accounts. Stealing money this way has become so easy, it has surpassed the monetary amount stolen through traditional crime. It very well could take credit card provider, smart card manufacturers, and law enforcement agencies working together to find a way to halt this type of theft.

The use of the Internet in connection with these crimes makes it more difficult to track thieves and has earned the method a variety of nicknames, including daylight robbery, ecrime, cybercrime, and electronic theft. Of course, when one considers that these nicknames also extend beyond credit card and smart card theft, the issue becomes even larger.

One solution for the future may be to implement tracking tools for smart cards and credit cards to prevent fraudulent use. Consumers can also take steps to ensure they don’t give out the information by accident by using anti-virus protection to prevent hacking attempts.

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Europe Set to Offer Certified Smart Card Industry Professional Exam

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In some occupations, certifications carry more weight than a diploma, and that may be just the case for the smart card industry. Now, professionals can test their knowledge through a certification process.

The CARTES & Identification event scheduled for 2010 in Paris will offer a new feature this year: the Certified Smart Card Industry Professional Exam. Hosted by the Smart Card Alliance, the exam will determine whether test takers have the necessary knowledge to work as professionals in the field of smart card technology. People interested in taking the test should understand the test will be a European version of the test.

The test began under the direction of Smart Card Alliance’s LEAP initiative, which is an acronym for Leadership, Education, and Advancement Program. Currently, the multi-part test is the only way to judge the knowledge of people in this field. Since 2008, the U.S. has used the test to certify smart card professionals, resulting in 56 certified individuals. Currently more than 100 international LEAP members recognize the exam as an international test.

If you are thinking about getting smart card certification, you may want to consult the study materials available through the Alliance. Training modules can help you understand the exact areas covered on the test, which can help you prepare for the questions you may face.

For the 2010 test, categories will cover the following areas: security; smart card fundamentals; smart card usage models – mobile, NFC and Pay TV; smart card usage models – identity and security; smart card usage models – payments and financial transactions; smart card application and data management. Other resources through the Alliance include a smart card technology and application glossary and a bibliography for additional information.

You can also sign up for preparation classes prior to taking the exam or turn to other online resources to help you prepare.

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Viaccess Fights Smart Card Piracy

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Anytime money gets involved in anything, it’s a sure guarantee that someone will try figure out a way to steal some of the funds. It doesn’t matter whether the money is in a vault, in a purse, or connected to a smart card. Thieves understand that the only thing standing in their way is figuring out how to do to it.

While smart cards are often safer to use than a credit card, thieves still find ways to steal from them. In the early days of smart cards, pirates were computer geniuses who were able to solve the algorithms used by smart card companies. Some of these pirates made a fortune by selling codes to smart cards on the Internet.

As security measures got tighter, thieves got better. Today’s pirates spread out the operation across different countries, making it harder to pinpoint the piracy. A small group handles one specific part of the process before handing it off to the next group.

Well, Viaccess has plans to stop piracy dead in the water. The Paris-based company has a new generation of smart cards hitting the market that will block the latest piracy techniques, including control word sharing. The PC5 will help fend off attack no matter what distribution network supports the card.

Viaccess also uses full disclosure, according to Maury Panis, the executive VP for the company. That means the company tells its customers whenever a pirate attack is successful. Once Viaccess knows what or who was behind the assault, it passes that information along to clients, as well.

With its new smart card and other products, Viaccess is hoping to keep one generation ahead of pirates by continually offering updated systems and products. The PC5, for example, has the ability to detect attacks and shut off the receiving codes to eliminate the threat.

When it comes to smart cards, the PC5 is one grade ahead of other ones.

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