smart cards

SMART CARDS

WHAT ARE SMART CARDS?

A Smart card is a plastic card about the size of a credit card, with an embedded microchip that can be loaded with data, used for telephone calling, cash payments , and other applications, and then periodically refreshed for additional use

CARDS BEFORE SMART CARD:

·        Plastic Cards:

 Visual identity application :

 Plain plastic card is enough

·        Magnetic strip (e.g. credit cards):

 Visual data also available in machine readable form

 No security of data

·        Electronic memory cards:

Machine readable data

Some security (vendor specific)

Dimensions of smart card:

85.6mm x 53.98mm x 0.76mm (defined by ISO 7816)

Why use smart cards?

·        Can store currently up to 7000 times more data than a magnetic stripe card.

·         Information that is stored on the card can be updated.

·         Magnetic stripe cards are vulnerable to many types of fraud.
 Lost/Stolen Cards
 Skimming

·        Greatly enhances security by communicating with card readers.

·         A single card can be used for multiple applications (cash, identification, building access, etc.)

·         Smart cards provide a 3-fold approach to authentic identification:
• Pin
 • Smartcard
• Biometrics

·        Security:
Data and codes on the card are encrypted by the chip maker

ADVANTAGES:

More Secure

This simple technology has revolutionized the payment card industry and increased the level of card security. These cards use encryption and authentication technology which is more secure than previous methods associated with payment cards. The microprocessor chip embedded at the heart of the smart card requires contact to the card reader and certain areas of the chip can be programmed for specific industries

Safe to Transport

Another advantage to having a smart card is their use in the banking industry (and many other sectors). These cards give the holder freedom to carry large sums of money around without feeling anxious about having the money stolen. In this regard, they are also safe because the cards can be easily replaced, and the person would have to know the pin number to access its stored value. This takes care of the problem with cash; once it is stolen it is nearly impossible to trace and recover it.

Double as an ID Card

A third advantage of using a smart card is that they can provide complete identification in certain industries. There are numerous benefits of using smart cards for identification. A driver's license that has been created using smart card technology can give the police the ability to quickly identify someone whose been stopped for speeding or reckless driving. These cards can be used by health professionals to identify someone who is brought in by an ambulance but unconscious or unable to speak.

Prevents Fraud

Other benefits of using smart cards for identification can be used by governments to prevent benefits and social welfare fraud to ensure the right person is receiving the welfare benefit. Some countries are using the smart cards to identify temporary workers who have been given work permits. This has the potential to reduce immigration fraud.

Smart cards are just as easy to use as a credit or debit card, but considerable more secure. They are lightweight and easy to carry. This makes it easy to have one card to pay for parking, access to the office, and for buying lunch at the office cafeteria.

DISADVNTAGES:

·          

·         Possible Disadvantages

Easily Lost

Like a credit card, smart cards are small, lightweight and can be easily lost if the person is irresponsible. Unlike credit cards, smart cards can have multiple uses and so the loss may be much more inconvenient. If you lose a card that doubles as a debit card, bus pass and key to the office, you could be severely inconvenienced for a number of days.

Security

A second disadvantage of the using smart cards is their level of security. They are more secure than swipe cards. However, they are not as secure as some in the general public would believe. This creates a false sense of security and someone might not be as diligent as protecting their card and the details it holds.

Slow Adoption

If used as a payment card, not every store or restaurant will have the hardware necessary to use these cards. One of the reasons for this is since the technology is more secure, it is also more expensive to produce and use. Therefore, some stores may charge a basic minimum fee for using smart cards for payment, rather than cash.

Possible Risk of Identify Theft

When used correctly for identification purposes, they make the jobs of law enforcement and healthcare professionals easier. However, for criminals seeking a new identity, they are like gold, based on the amount of information it can contain on an individual.