RFID and Privacy Futures

David Keenan and Duane CarlsonPresent to

The Minnesota Futurists24 February 2007

Outline

• History

• Definition

• Market

• Applications

• Privacy Concerns

• Companies

• State of the Art

• Discussion

History• 1905 - Nikolai Tesla

– Father of AC power– Envisioned wireless power AND information transfer

• 1939 - British– Used by Allied aircraft to Identify Friend or Foe (IFF)

• 1960s– Early work on RFID devices

• 1973 - Mario Cardullo– U.S. Patent 3,713,148 first ancestor of modern RFID;

a passive radio transponder with memory. NY Port authority – 16 bit, toll device

– http://en.wikipedia.org/wiki/RFID

Definition

• Radio Frequency IDentification– Short range– Non-contact– Non line-of-sight– Used for wireless data transfer– Active – requires a battery, sends data on

interval– Passive – no battery, power comes wirelessly

from reader, sends only on request

Similar but not RFID

• Garage door openers

• Walkie Talkies

• Cordless phones

• Cell phones

• Magnetic apparel or book tags

• Magnetic strip cards

World Wide RFID Forecast

RFID Application

by CostRoadmap

Units by Application 2016

IDTechEx article

RFID Sales by Application 2016 est.

IDTechEx article

2006 Application Data

• Airline baggage – 25 Mil tags / 2 Bil bags• Retail – 50 Mil – Marks & Spencer, Best Buy• Smart Cards & Tickets – 550 Mil (China ID)• Animals – 70 Mil (exp 90 Mil in ’07)• Pallets & Cases – 200 Mil (vs 500 Mil fcst

but exp 420 Mil ’07, 1 Bil ’09 to 35 Bil ’17)• Drugs – 15 Mil, slow adoption, FDA waffles

• 2007 1.7 Bil tags, $5B hdwr,sfwr, integration• 2017 $28BIDTechEx

Components of RFID System

• Radio tag

• Antenna

• Interrogator for transmit/receive data

• Computer interface

• Software to use transmitted data

RFID Tag Examples

RFID Tag Frequencies

Low 100-500 KHz costly, short range

125 KHz std low read speed

global

Mid 10-15 MHz low cost

13.56 MHz std mid read speed

global

Hi (UHF) 850-950 MHz 10m range, hi cost

2.4-5.8 GHz fast read speed

requires line of sight

How RFID Works – Low freq

Scientific American article

How RFID Works – High freq

Scientific American article

Standards

• Gen I– 8 bit to 64 bit

• Gen 2 - 2005– Intermec, Metro Group and Royal Philips Elec RFID

chip complies with EPCglobal’s (UHF) Electronic Product Code Class 1 Generation 2 and ISO 14443 & 15693, 96 to 128 bit

– Adds password protection & encryption

• Gen 3 - 2008– http://www.rfidjournal.com/magazine/article/2254/1/350/definitions_off

Applications1. Supply Chain Automation

– First really large scale, extremely important– Wal-Mart (WMT) mandated for pallets & cases

top 100 suppliers provide RFID by 01Jan05 e.g. HPQ, JNJ, G, KMB, KFD, PG, UN, Nestle all 10,000 suppliers by 01Jan06 because RFID reduced ‘out of stock’ by 30%

– Kimberly Clark first RFID scan – Scott Towels– General Mills – WMT accts for 13% of sales– WMT, $700M sales/day ’02– Expects to save $8.4B by end of 2007

Privacy Concern

1. Supply Chain Automation

• No major privacy issues at pallet, box level

Benefits

• Faster and more accurate inventories

• Reduced ‘out-of-stock’

Applications2. High Value Asset Tracking

- Equip. in offices, labs, hospitals, nursing homes- Wheelchairs, IV pumps, respiratory monitors

- Equipment in the field - mining cathodes, construction equip

- Military munitions and electronics- Books in Libraries (3M since 1999)- Shopping carts- Document and File Tracking

- Legal (3M system adopted by US Tax Court)- Medical records

Applications2. High Value Asset Tracking continued

- Returnable gas bottles & tanks- Fleet vehicles

- UPS has 88,000 vehicles, 60,000 drivers 13 mil packages, 2 mil shippers, 7 mil receivers spent $600M on Package Flow Technology Sep03 spends ~ $1B/year on tech, more than on trucks

- Car dealerships - Tag new and used cars on various lots

- Car theft deterrent- RFID tag can immobilize car if reported stolen

- Buried pipes, cables also bridges

Tires

Goodyear• Rolled out tire leasing program for NASCAR• Builds Advanced ID chips into tires• 200,000 tires for 3 NASCAR series racesElectornic Design article

Michelin Embeds RFID Tags in TiresMichelin this week revealed that it has begun fleet testing of an RFID transponder embedded in its tires to enable them to be tracked electronically.

www.prisonplanet.com

Privacy Concern

2. High Value Asset Tracking• Tracking vehicles, tracks drivers – no hiding• Car immobilizers – false signal

Benefits• Loss control• Faster response to emergency• Better control of High Value Assets

Applications3. Security Enhancement

– Forgery Proof Passports• Sweden, Australia, Singapore, Jamaica, Belize,

Bermuda and the United States (pamphlet)• Includes digital picture plus data

– Ingress/Egress Badges• Controlled access areas, hospital wards, stores

– Parking Spaces• Hoboken, NJ – 12,000 parking spots vs. Commuters to

NYC

– PSA Corp, Hutchinson Wampoa, P&O Ports • Worlds largest port operators outfit containers with

rad/chem/bio tags to detect smuggled weapons

Auto Keys and Remote Entry

If you have a Jeep manufactured after 1998 then you probably have a RFID SENTRY COMPUTER CHIP TRANSPONDER KEY.

Passport RFID

http://www.bundesdruckerei.de/pics/4_presse/fotoarchiv/aktuelle_fotos/ePass2005_text_de.JPG

Privacy Concern

3. Security Enhancement• Passports

un-authorized scans• Strong encryption to

prevent

Benefits• Faster customs screen• Harder to counterfeit

e-Passport Cloned

• Lukas Grunwald demonstrated scanning RFID and then duplicating passport information at ’06 Black Hat convention

• Name, nationality, sex, date of birth, digital photo, passport number

• Dept of State says e-Passport will use cryptographic technique called Basic Access Control

• Cloning does not require decryption

2005 Real ID Act

• By May 11, 2008 Americans will need federally approved ID (machine readable) to – Travel by plane– Open bank account– Collect Social Security payments– Use nearly every government service

• Several states are fighting

• Senate working to repeal

• ACLU website www.RealNightmare.org

Applications

4. Transportation Payments– Commuter billing for toll roads, at speed

• MN Pass on 394• EZ Pass – east coast• Sun Pass – Florida• IPass – Illinois• FasTrack – California

– Transit cards for trains, subways– Access cards for buses, limos, taxis at airport

Privacy Concern

4. Transportation Payments

• No cheating tolls

• Might be prelude to policing speeders

Benefits

• Reduce toll booth bottlenecks

• Simpler billing

Applications5. People in Motion

– Marathon runners – more accurate timing• Champion Chip – Netherlands, attach to laces

– Name tags for trade shows– Doctors and nurses in hospitals– Alzheimer’s patients– Kids on the beach– School kids in high

risk countries

Ski Racing, Rentals, Demos

SkiChip allows reliable time-taking under the extreme conditions of winter sports competitions. Low-cost solution for one-time use. Eliminates the need for charging equipment rental fees or deposits as well as the time-consuming process of collecting the equipment after the end of the event.

http://www.schreinergroup.de/wEnglisch/schreiner_logidata/img/Produkte/RFID_Loesungen/RFID_SkiChip.jpg

Tracking Children

Buffalo children tracked by plastic cards with embedded RFID microchips

The charter school's 422 students wear small plastic cards around their necks that have their photograph, name and grade printed on them, and include an embedded RFID chip.www.prisonplanet.com

Firefighter Safety

• GHL Technologies (GHLT) is combining Survival Tag from RFID, Ltd with GPS technology to replace firefighter PASS alarm (Personal Alert Safery System)

• Designed to embed in uniforms

• Track and pinpoint emergency personnel

• Beta test set for Q2 2007

Privacy Concern5. People in Motion• Tracking on-duty professionals – no hiding• Tracking kids

Benefits• Faster muster for emergencies• Faster to locate/ID confused patients• Easier to identify trapped people• More accurate race times/less labor• Trade shows – handle more visitors

Do It Yourself

• Nike+iPod Sport Kit

• RFID in Nike+ Air Zoom Moire sneakers

• Small receiver plugs into iPod

• U Washington researchers built the $250 surveillance device and integrated it with Google Maps

• You can track your time, distance, pace, and calories burned

• Can be read from 60 ft away

Do It Yourself 2

• The significance was how easy it was

• "Unless we enact some sort of broad law requiring companies to add security into these sorts of systems, companies will continue to produce devices that erode our privacy through new technologies. Not on purpose, not because they're evil--just because it's easier to ignore the externality than to worry about it."

Applications6. Animal tracking

• Livestock– Birth, growth rate, injections,

grazing, mating, weaning– Traceability in case of disease National Animal

ID System (NAIS) mandates tagging 40 million animals in US, 343,186 farms reg. by Jan 07

– Michigan requires tags by 01 Mar 07

• Migrating, endangered, dangerous species– Fish, birds, wolves, bears (Digital Angel)

• Pets

Advanced ID Corp

• OTC BB:AIDO.OB

• UHF RFID product line for tagging and tracing cattle, sheep, pigs and birds

• Trial in Hunan Province in China includes tagging pigs where the market potential is 500 million pigs, 3x of any other nation

• Taiwan trial tags both cattle and pigs for combined market of 66 million animals.

www.advancedidcorp.com

Privacy Concern

6. Animal tracking

• Valuable pet could be stalked

• Endangered animals could be hunted

• Bloggers say “Prove on animals, then apply to people”

Benefits

• Faster response to disease outbreaks

Applications7. Perishables / Inspection

– New regulations require importers to notify FDA of food imports to prepare inspectors• 2 hrs in advance if by land• 4 hrs for rail or plane, 8 hrs if by sea• Impacts General Mills, Cargill, CHS,

International Multifoods, Kraft, P&G…

– Shipments of perishable vaccines and high value pharmaceuticals

Privacy Concern

7. Perishables / Inspection

• No privacy issues

Benefits

• Faster inspector response

• Better assurance of correct transport of perishable drugs

Application8. Currency

– The European Central Bank is considering adding RFID to Euros, presumably high denomination

– Presume high value securities to follow, bearer bonds, etc.

– RFID ATM and Credit Cards for no swipe checkout

– Casinos are adding RFID to big value chips• Holland Casinos ordered ~ 1 million chips from

GPIC, €2 to €500 chips, for ~ $2.4 mil Dec 06

Credit Cards / Smart Cards

• RFID for Credit Card Users

American Express has begun to use radio frequency identification (RFID) technology in a pilot program centered in the greater Phoenix area.

www.prisonplanet.com

Mobil Speedpass

• Introduced 1997• 6 million use at

7,500 locations

http://www.siliconeer.com/past_issues/2004/JUNE2004-FILES/jun04_RFID_3.jpg

RFID in Currency Explodes in Microwave Oven

www.prisonplanet.com

Privacy Concern8. Currency• 007 - tracked by chip in Casino Royale• How much is in your wallet?• Lots of concerns about ATM, Credit Cards

Benefits• Deter counterfeiting and money laundering• Spend more faster

Application

9. Consumer item tagging / Smart Shelf– Gillette – pulled early tags, back for WMT– Benetton cancelled 15 mil tag test due to

protest – tags could be read after purchase– Kraft – tags jams and dairy for freshness– Hasbro – Star Wars figures– Prada – high value apparel– Gap - apparel– Software – Best Buy, MSFT– Consumer electronics

Privacy Concern

9. Consumer item tagging / Smart Shelf

• Germany’s Metro “Future Store” tracked shoppers and items from shelf

• Detailed record of your buying patterns “Amazon at every aisle offering you items of interest”

• Competitor could monitor customers leaving store for market research

Recommendations for CPG

1. Notify consumers of RFID presence on sales receipt

2. Tags should be easily seen and removable

3. Disable tags at checkout (Alien Tech, Phillips, and Matics tags have kill switch)

4. Place tags on package, not on product (Schwinn tags manual, MSFT tags box)

Chipping People - Verichip

Verichip

• VeriChip, IPO 3.1 mil shares for $6.50/ sh.

• Currently trading at around $6.15

• Only 222 patients implanted in 2006

• ’06 Sales of implants $100,000 (~$200/ea)

• Tech developed by Digital Angel for animals

• Verichip licensed for humans

• Must buy $875,000 in 2007, $1.75M in 2008

• FDA approved 2004

• 45 mil US Patient market for med info chip

Do It Yourself 2Graafstra has engineered the chips in his hands to serve the same purpose as the code that opens his apartment door or the key fob that unlocks his silver 2004 Volkswagen Golf. He keeps no data on the chips, just a 10-character code.

He waves his hand within a few inches of a sensor on the windshield, and that performs the same function as pressing a button on his remote control, unlocking the car door.

http://seattletimes.nwsource.com/html/localnews/2002835871_chipimplant01.html

Exclusive Clubs

RFID-chip for Baja Beach Club sold out70 regular customers of Rotterdams Discotheque Baja Beach Club now have a subcutaneous chip the size of a grain in their arm. The chips were implanted by a doctor. Customers with a chip can always use the discotheque and have access to VIP-deck. No need to carry a purse or wallet to buy drinks.

Even for Corpses

• Verichip donated equipment to tag corpses and dislocated bodies from flooded cemeteries after Katrina

• DMORT (Disaster Mortuary Operational Response Team) and Mississippi Coroners implanted 300 chips in left shoulders before placing in body bags

• Permits ID through the bag, improvement over paper toe tags

Hitachi mu Chip

Hitachi Chip µ Chip Application Targets

PDA RFID Reader

• Sony & Phillips working on Near Field Comm (NFC) so PCs, PDA, other device can comm with RFID to load RFID tickets to your phone/PDA for event access

http://www.infochip.com/images/hand_reader_chip.jpg

Beyond RFIDWireless sensor ‘motes’

• Dust Networks– Emerson is adopting Time Sync Net Protocol for its

next gen field sensors

• Also Crossbow Technologies, Ember and Millennial Net

• Motes are active sensors, with battery or solar or vibration power

• Form self-organizing ad hoc networks with each other to communicate to a reader

Over 30 Privacy Groups

http://www.gulli.com/uploads/RTEmagicC_180px-Stoprfid-logo.jpg.jpg

CASPIAN Consumers Against Supermarket Privacy Invasion And Numbering

Spychips• Book by Katherine Albrecht and Liz McIntyre

• RFID tags easily hidden

• Readers easily hidden

• Retailers give out loyalty cards with RFID

• They can track shoppers time in various aisles and how long shopping took

• Can ID you as soon as you walk in the door and determine your value as a shopper and treat you accordingly

Spychips• Buy a pair of sz 7 Nike shoes with credit card

• Name is matched to unique ID in shoes

• Now RFID is read by reader at Courthouse and database matches ID to your name

• Readers at Airports, Stores, Arenas, Hospitals, Pharmacies, Libraries

• Suppose you attend Gun Show, Peace Rally, union meeting, cleric speaking, political event

• Your movements could be tracked

Spychips• RFID Med Info? “Scares the hell out of me”.

Tommy Thompson on the board of Verichip.

• We’ve gone from “Oh that’s pet-chipping, we’ll never put that in people.” to seriously talking about implanting chips in American Citizens”

• RFID is a great technology for tracking things from point A to point B

• Could have some consumer benefits, but they absolutely pale in comparison to the risks.

• “If you can’t tell people you’re doing it, you shouldn’t do it.”

Spychips• Motivated by absolute resistance against the

idea that we would all just be reduced to being numbers and tagged and tracked like cattle. When I see RFID and I think about a world in which the powers that be—be they corporate or government—can essentially watch, surveil, track, manipulate, and control the people

• www.nocards.org

• www.spychips.com

MIT Auto-ID Lab

• The MIT Auto-ID Laboratory is dedicated to creating the Internet of Things using RFID and Wireless Sensor Networks.

• Our aim from the start was to create a global system for tracking goods using a single numbering system called the Electronic Product Code.

• The Auto-ID Labs are the leading global network of academic research laboratories in the field of networked RFID.

http://autoid.mit.edu/cs/

More Links

• www.idtechex.com/ RFID case studies• www.epcglobalinc.org/ Elec.Prod.Code Std• http://autoid.mit.edu/cs/ MIT Auto-ID Lab• www.ti.com/rfid/default.htm Texas Instr.• www.verichip.com Verichip• www.alientechnology.com/products/rfid_tags.php• www.spychips.com/ Privacy Group• www.epic.org/privacy/rfid/ Privacy Group• www.prisonplanet.com Privacy Group