Dear Readers,
The overriding feeling last week concerning stories circulating through the Twitter sphere could be summed in one acronym: FUD. For those of you not familiar with TLAs (three letter acronym): It stands for Fear, Uncertainty and Doubt. A fitting description to what we have been reading (and watching – we have video!) concerning the UK media's reaction to the supposed 'security' flaws with contactless cards.
You should all know what we are talking about and if you don't then here is a handy little little re-cap (http://wp.me/p1Jrjn-tV). Channel 4 News (UK) have 'discovered' that Barclays contactless cards users could be exposed to fraud by the very fact that the name, card number and expiry date could be read wirelessly using a contactless reader in a mobile phone. The news programme reported that "The government is urging Barclays bank to consider recalling up to 13 million credit and debit cards after a news investigation uncovers serious security flaws in its payment systems.". Heavy stuff. A recall. Security flaws. Serious security flaws, even. And that number – 13 million. All very impressive stuff; very FUD inducing. But is it really? I would argue that it isn't. At all. The fact that a device can take the card number, name and expiry date off a card is no different from someone obtaining the same information by 'shoulder surfing' while you use your card in other purchase scenarios. If someone was to do this to you - would that be considered a security flaw? Would the government urge a recall? Probably not.
The story then changed to how this information could be used to purchase things online. As long as there was an online retailer who could take a credit card payment without confirmation of the security code. Namely Amazon. This is the real scandal (http://bit.ly/GWvF9x). Instead, there was doubt about the viability of contactless cards in general (http://bit.ly/H7vPOR). Talk about a story that changed direction but retained the wrong villain. No doubt this story will bump along for a few more weeks. However, other than a general statement, Barclays/Visa have remained tight lipped on the subject other than to issue a statement that included the phrase, "So long as the appropriate levels of security are upheld when verifying a payment, it should not be possible for a fraudulent transaction to take place. We will continue our work, alongside card issuers and merchant acquirers, to ensure that retailers have the required security procedures in place to protect against fraud." (http://bit.ly/H7vPOR). In an ideal world this should be enough. In a country riddled with media scandals – I'm not so sure we have heard the last of this story.
Until next week.
Steve Atkins
Contactless Intelligence
Featured on C-ITV this week
Payments & m-Commerce
Bringing Mobile Money Back to Reality http://bit.ly/H7uVSB
Contactless payments on the rise but merchants are slow to adopt http://bit.ly/GR8sat
Barclays 'contactless' cards exposed to fraud http://tgr.ph/GNkmSn
Square to launch revamped payments app, Android support http://bit.ly/GNka5s
First contactless payment program in the Canary Islands with Ingenico http://bit.ly/GW5KjU
Mobile Payment Platform Swiff Launches in Singapore; Targets Other Markets http://bit.ly/GW5QYD
US: BilltoMobile Partners With Discover On Mobile Payments Push http://tcrn.ch/GW68Pr
Commentary: Reconsidering the role of the trusted service manager http://bit.ly/GW64iA
Mobile wallet rivals compete for consumer attention, services http://bit.ly/GW61mW
Contactless payment cards raise security concern - but is there a much older problem? http://bit.ly/GWvF9x
The billion-dollar fight for control of mobile money http://bit.ly/H2EhhP
I'm confused. what is the issue here - retailers not taking the security code or contactless in general? http://bit.ly/H7vPOR
Mobile Money Opportunities in the BRIC Countries http://prn.to/H2EqSl
NFC & Mobile
Why does Apple care so much about SIM cards anyway? http://bit.ly/H7wPmd
RIM attacks Apple's nano-SIM tactics http://bit.ly/H7wBLE
Nokia threatens to elbow Apple's rival nano-SIM off a cliff http://bit.ly/H2E8uA
Apple Granted Nano-SIM Patent, Making Big Blow In Recent SIM War http://bit.ly/GW6dlZ
Apple to offer royalty-free nano-SIM patents http://bit.ly/GTys7c
Nine Finalists Seek Top Honors in NFC Forum & WIMA's NFC Global Competition 2012 http://bit.ly/GTypZ5
Malaysian Telco Maxis to Launch NFC Payment with iPhone Sleeve http://bit.ly/GTyprY
France awards government grants to nine NFC projects http://bit.ly/GTyoUQ
Payair launches NFC/QR code payment solution http://bit.ly/GTymfM
NFC security standards, perception must be improved http://bit.ly/GIRl9b
Wind starts NFC employee trial with Samsung http://bit.ly/GNkb9r
RIM's NFC smartphones to get new iris biometric security feature http://bit.ly/GTyAng
Students win Telefónica start-up funding in first NFC hackathon http://bit.ly/GTyxrq
Nokia rejects Apple's royalty-free license offer for Nano-SIM http://bit.ly/GW5PEj
NEC Commences Joint Research on Anonymous Authentication Project for Smartphones http://nec.to/GW5O31
MIT to Launch 'NFC App Inventor' to Ease Development of Apps for Android http://bit.ly/GW5ZLV
Identive Opens the Door to Physical Access with NFC-Enabled Smartphones http://bit.ly/GW5X6t
Dual RFID-ZigBee sensors to enable NFC applications for the Internet of Things http://bit.ly/H2E65Y
AT4 wireless Laboratories Announces the First NFC Forum Device Certification http://bit.ly/H2En95
Transportation, Ticketing & Loyalty
Free-for-all: gates flung open in myki crush http://bit.ly/H7w50r
PalmPass Ushers in Digital Age for Canadian Transit Systems http://bit.ly/GIRrhg
Mobile superstore to discover how poster shopping will change the future of retailing http://bit.ly/GNk9ym
Commemorative Oyster Card to mark Diamond Jubilee http://bit.ly/GTyCLS
Myki muddle as touch-off befuddles travellers http://bit.ly/GW6rtt
Banks test ‘tap and go’ on public transport http://bit.ly/GW6hSP
Plus.de, L'TUR adopt mpass mobile payment system http://bit.ly/H7wSOF
Other News & Opinion Articles
NXP to Present Investor Strategy Seminar: Authenticating Identity, Securing Transactions, Beyond the NFC Growth Story http://mwne.ws/GTytbf
ASK closes 4.7 M€ funding round http://bit.ly/GNk4uB
Vivotech Announces New Funding Round as it Seeks to Capitalize on M-Commerce Buzz http://bit.ly/GTytYH
OTI files patent infringement suit against T-Mobile http://bit.ly/GW5W2C
On Track Innovations: Primed For A Hostile Takeover http://bit.ly/H2DIVf
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