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Håkan Djuphammar, VP of Systems Architecture for Ericsson, made a prediction recently that all new mobile phones sold after Summer 2010 would have two-way RFID chips in them that would allow them to act as a tag or a reader.

If what you just read sounds like technobabble, watch this short news excerpt to get up to speed. Even if you’re not interested in technology, you should learn about the possibilities and the dangers of RFID:

Back to the mobile phone: yes, it would be perfectly easy for all mobile phones on the planet to have an RFID tag/scanner in them. The possibilities for making use of RFID, like the numbering scheme itself, are practically endless. People in Asia use their mobile phones to buy drinks from vending machines all the time, and according to Djuphammar:

the chip might also be used by credit card companies to track the location of cardholders to cut down on fraud.

This was followed up on the Wired Magazine article about this story with a great user comment:

So, the myriad of privacy concerns aside, does this mean I won’t be able to use my credit card if I leave my phone at home?

RFID doesn’t inherently scare me. I already use one in the keyfob for my car when unlocking the door and starting the engine. It raises ethical concerns, and I think we should plan our next moves carefully. We don’t have a great history of moving carefully forward (people still drive without seatbelts all the time), which is one of the reasons I’m hoping you’ll educate yourself and your friends about this starting today.

If you have the means and the time, I highly recommend the book Everyware: the dawning age of ubiquitous computing, which not only details many possibilities for taking advantage of RFID, it also contains a great starting point for a positively ethical “post-PC” future (including some really neat new icons).

RFID-Enabled Phones Could Let Credit Card Companies Track Users, Kim Zetter, Wired Magazine, June 25, 2009

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Every Tuesday, Smithee presents an article about his own experiences with credit cards and observations about the credit card industry.

A few weeks ago I was the victim of debit card fraud. In my case the system worked very well. The bank’s automatic mechanisms noticed a few big-ticket items being purchased in Chicago, which is quite far from where I live. The first one went through, the second one was held up and I started getting calls from the bank’s fraud detection department.

So, that card number had to be canceled and I got a replacement with a new number within a few days. The money was also refunded, but the surprise came when I noticed the new card had that little “PayPass” logo on it. You know, the thing that’s supposed to let you tap the card against a reader instead of sliding it through the reader? (Think of the time saved!) The old one didn’t have PayPass on it, and I was ambivalent about the technology, having read reports about how it’s not all that much faster.

The bigger problem is that it uses RFID, which is not exactly ready for prime time. To make a long story short, people can easily, and cheaply, extract the data from your card without you knowing. Here’s a video with a demonstration:

Interesting side note: Mythbusters was going to do a show about this, before the idea was quashed.

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