"Speedpassing" RFID Privacy Strategies Not Ready For Primetime

Tom Heydt-Benjamin, left, and Kevin Fu, a University of Massachusetts professor, cull information from a credit card with a card reader. Image Credit: Nancy Palmieri for The New York Times

"Speedpassing" RFID Privacy Strategies Not Ready For Primetime

At Symblogogy, we have chronicled many strategies where people would be able to pay for items with an ever gaining popular technology that is based in radio frequency detection and reading.

The neat thing about this technology is a little like being recognized at the checkout … as if you were raised with and have lived with the people who are serving you. Proximity.

It is an illusion though because the equipment they are using would be able to read ones payment information without one having to reach into ones wallet … just like being recognized by ones personal banker, or ones mother.

From cellphones, passports, and now even credit cards are being embedded with proximity RFID technology that allow personal identification and financial information to be captured without the person carrying this "technology" know that the information has been given up.

Excerpts from The New York Times -

Researchers See Privacy Pitfalls in No-Swipe Credit Cards
By JOHN SCHWARTZ - Published: October 23, 2006

AMHERST, Mass. - They call it the "Johnny Carson attack," for his comic pose as a psychic divining the contents of an envelope.

Tom Heydt-Benjamin tapped an envelope against a black plastic box connected to his computer. Within moments, the screen showed a garbled string of characters that included this: fu/kevine, along with some numbers.

Mr. Heydt-Benjamin then ripped open the envelope. Inside was a credit card, fresh from the issuing bank. The card bore the name of Kevin E. Fu, a computer science professor at the University of Massachusetts, Amherst, who was standing nearby. The card number and expiration date matched those numbers on the screen.

RFID pick-up/input reader system Image Credit: Dima Gavrysh/Associated Press

The demonstration revealed potential security and privacy holes in a new generation of credit cards - cards whose data is relayed by radio waves without need of a signature or physical swiping through a machine. Tens of millions of the cards have been issued, and equipment for their use is showing up at a growing number of locations, including CVS pharmacies, McDonald's restaurants and many movie theaters.

The card companies have implied through their marketing that the data is encrypted to make sure that a digital eavesdropper cannot get any intelligible information. American Express has said its cards incorporate "128-bit encryption," and J. P. Morgan Chase has said that its cards, which it calls Blink, use "the highest level of encryption allowed by the U.S. government."

But in tests on 20 cards from Visa, MasterCard and American Express, the researchers here found that the cardholder's name and other data was being transmitted without encryption and in plain text. They could skim and store the information from a card with a device the size of a couple of paperback books, which they cobbled together from readily available computer and radio components for $150.

They say they could probably make another one even smaller and cheaper: about the size of a pack of gum for less than $50.

And because the cards can be read even through a wallet or an item of clothing, the security of the information, the researchers say, is startlingly weak. "Would you be comfortable wearing your name, your credit card number and your card expiration date on your T-shirt?" Mr. Heydt-Benjamin, a graduate student, asked.
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The finding comes at a time of strong suspicion among privacy advocates and consumer groups about the security of the underlying technology, called radio frequency identification, or RFID. Though the systems are designed to allow a card to be read only in close proximity, researchers have found that they can extend the distance.

The actual distance is still a matter of debate, but the claims range from several inches to many feet. And even the shortest distance could allow a would-be card skimmer to mill about in a crowded place and pull data from the wallets of passersby, or to collect data from envelopes sitting in mailboxes.
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The experiment was conducted by researchers here working with RSA Labs, a part of EMC, an information management and storage company. The resulting paper, which has been submitted to a computer security conference, is the first fruit of a new consortium of industry and academic researchers financed by the National Science Foundation to study RFID.

Security experts who were not involved in the research have praised the paper, and said that they were startled by the findings. Aviel D. Rubin, a professor of computer security at Johns Hopkins University, said, "There is a certain amount of privacy that consumers expect, and I believe that credit card companies have crossed the line."
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Chips like those used by the credit card companies can encrypt the data they send, but that can slow down transactions and make building and maintaining the payment networks more expensive. Other systems, including the Speedpass keychain device offered by Exxon Mobil, encrypt the transmission - though Exxon came under fire for using encryption that experts said was weak.

Though information on the cards may be transmitted in plain text, the company representatives argued, the process of making purchases with the cards involves verification procedures based on powerful encryption that make each transaction unique. Most cards, they said, actually transmit a dummy number that does not match the number embossed on the card, and that number can be used only in connection with the verification "token," or a small bit of code, that is encrypted before being sent.
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Tom O'Donnell, a senior vice president at Chase, the largest issuer of the new cards, said that the attacks described in the paper would be too cumbersome in the real world. And the researchers said that other kinds of fraud, like so-called phishing scams in which criminals trick people into revealing credit card information through misleading e-mail messages and Web sites, were currently more effective.

Still, John Pescatore, vice president for Internet security at Gartner, a technology market research firm, said he was surprised by the lack of security in transmitting personal data. He said it was a mistake that companies often made in rolling out early versions of a technology.

"It's the classic 'Let's depend on security through obscurity - who's going to look?' " he said. "Then, whoops! As soon as somebody does look, you roll out the security."

All of the card companies said that they were in the process of deleting names from the stream of data transmitted to the card readers. "As a best practice, issuers are not including the cardholder name," Mr. Triplett of Visa said.
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The seriousness of breaches in security and ID privacy cannot be understated. "Security through obscurity" doesn't work in this day and age of easy access of information through the internet and the spread of identity theft schemes in our society.

This technology just may go one step too far.

RFID Applications Come Into Focus With EPC Standards Overlay

Welcome To The EPCglobal US Conference & Expo - Los Angeles Convention Center - Image Credit: Edmund Jenks

RFID Applications Come Into Focus With EPC Standards Overlay

Radio frequency identification is a pretty nifty technology. Take an antenna and some memory, power it up (active) or have it be able to be useful when activated with radio waves (passive) and one has a way to have a greater amount of identification information be attached to an item, a person, or a thing ... Then retrieve this information with proximity based readers without having to have a person to be paid to scan the information (as with barcodes and printed symbology) in order to get it to where it can be used and processed by computer programs.

"Zero human intervention!" stated Peter T. Bloch, RFID Program Director Systemedia Division - NCR.

The four steps of creating an Auto-ID or mobility application using ADC involves creating Transaction Business Objects using the more than 80 powerful functions of the platform. Then a business analyst can sequence the Business Objects into a Transaction Process. A group of Transaction Processes are placed together to create an Application and assigned to one or more users. For ADC, a user can be a human or a device, such as an RFID portal. ADC bridges the divide within Auto-ID technologies, providing a platform for intent-based data collection and pervasive data collection. Intent-based data collection ties a person to the Auto-ID process allowing the person to direct when and where data collection activities occur. Pervasive data collection is automated. As materials flow through an environment, movements are captured via RFID tags and readers and processes executed accordingly. Image Credit: NCR/IDVelocity

Nifty.

As with all efforts designed to help aid in the human endeavor of life, to have this technology maximize the benefit to all, standards must be applied.

Enter the Electronic Product Code (EPC), a number for uniquely identifying an item.

The adoption of this standard and its effect is a little like affixing a wide angle lens to a camera that allows a business effort to visualize, to a greater degree, what is actually happening within the distribution and delivery systems that are set up to fulfill the intended needs of the products we all use.

The application of these standards also allows those who are involved in an activity to meet needs, to think ... Globally.

The conference and expo was "a-buzz" with the anticipation of a breakthrough year in adoption and benefit realization. Truth is, this technology has been growing steadily at about 40% per year (estimated by Joe White, VP Engineering-RFID Tag Business, Symbol Technologies, Inc.) and still has a few hurdles to overcome before most business processes participate in the benefits of a RFID/EPC standard.

Symbol Technologies, Inc., The Enterprise Mobility Company, announced that it has launched the RD5000 [09/19/06], a compact, mobile Gen 2 RFID reader that can be integrated with forklifts, pallet jacks, stretch wrappers, and other material handling equipment, and utilized in various space-constrained environments. By extending the range of RFID beyond the dock door, the RD5000 mobile RFID reader provides customers with improved asset visibility in motion throughout the supply chain. Image Credit: Symbol Technologies

For example, currently, not all items are tagged with RFID tags ... let alone tags that conform to the EPCglobal standard. Then, if all items were tagged "globally", there still remains the problem of having hundreds of thousands of portable data collectors that read barcodes but cannot read RFID tags existing in the field. If the people are there anyway, why not give them the ability to capture the RFID data?

"Upgrade them!" says Martin Payne, VP of Marketing & Strategy - Skye Tek. "Sure, upgrade the portable data collectors so that the devices can capture barcodes and RFID as well."

Skye Tek offers the SkyePlus (TM) MXH and MXU antenna multiplexers to ease integration efforts for those devices requiring multiple read-points. Both the MXH and MXU can be equipped with 4 or 8 antenna ports depending on the application requirements. Infrastructure costs are reduced by using the multiplexer to minimize the number of readers required to support multiple read-points. Image Credit: Skye Tek

Skye Tek, located near Boulder, Colorado, designs and manufacturers RFID reader modules for inclusion with other manufacturers' products. The reason Skye Tek is able to deliver an OEM hardware solution that is smaller and less expensive is because the main load of the technology is shouldered in the software approach that supports the overall RFID information capture solution that Skye Tek delivers. At a cost of inclusion of well under $500.00 per unit, an existing population upgrade can be easily justified when pitted against the information-gathering benefits realized with the addition of multi-technology read capability units working in the field.

As EPCglobal US likes to put it in their "About Us" description -

The EPCglobal Network combines Radio Frequency Identification (RFID) technology, existing communications network infrastructure, and the Electronic Product Code-TM (a number for uniquely identifying an item) to enable accurate, cost-efficient visibility of information in the supply chain. The end result helps organizations be more efficient, flexible, and responsive to customer needs. To learn more, please visit http://www.epcglobalus.org/

Excerpts from a press release submitted to Business Wire -

EPCglobal US Conference 2006 Puts the Business Value of EPC/RFID in Focus
Senior Executives from Dow Chemical, Procter & Gamble, Wal-Mart, and Wyeth Tell Attendees About Their Companies' Use of Electronic Product Code/Radio Frequency Identification Technology (EPC/RFID)
By Pete Settles, GS1 US - Joanne Beardslee, Elias-Savion - Tuesday, October 17, 2006

LOS ANGELES--(BUSINESS WIRE)--Senior executives representing a broad range of industries addressed 1,300 attendees at the general session of the EPCglobal US Conference 2006 today, discussing how EPC technology is already demonstrating value for their businesses and the potential it has for the future.

"Industries are increasingly turning to EPC/RFID to drive topline business growth, improve product availability, protect supply chains, and reduce supply chain costs," said Mike Meranda, president of EPCglobal US, as he opened the general session.

"The more companies, industries, and trading partners that use this technology, the greater the collective benefits for every company investing in this effort," said Carolyn Walton, vice president of Wal-Mart. "Today, we truly have a realistic opportunity to achieve end-to-end supply chain visibility. We can cut our expenses. We can reduce the concerns about counterfeit products through powerful item identification and authentication. We have the means to create a safer and more secure supply chain. And most important of all - we can do a better job of taking care of our customers."

Thomas Pizzuto, director of RFID technology and strategies at Wyeth spoke about the benefits EPC/RFID brings to the pharmaceutical industry.

"Wyeth views RFID/EPC as an important enabling technology that when combined with other anti-counterfeiting technologies and systems we are implementing will help ensure patient safety and the overall security of the drug supply chain. RFID/EPC gives us the means to mass serialize our products at the item-level and to provide points downstream in the supply chain with a labor-efficient means of identifying and associating these items with their drug pedigree."

"Based on what EPC has done at Procter & Gamble, and how this technology is advancing across a broad range of industries, it is clear this is a transformational initiative," said Dick Cantwell, EPC Team Leader, Procter & Gamble. "We finally have the means to see our products move from the point of production to the point of sale and everywhere in between. Ultimate accuracy, unmatched visibility, real supply chain safety and security - these are no longer things that companies can only imagine. We can achieve them and transform our businesses."
Reference Here>>

Unlicensed Radio Frequencies Gain Space In Technology Shift

Philco Continental (1960) - Model 4370 - Danish style mahogany wood cabinet. This 21" television was the last model offered in the innovative "Predicta" series. Released to the marketplace with little advertising (due to budget constraints), consequently, few were sold. The overall series of sets had reliability problems, foremost being the specially designed 'short-neck' picture tube. Image Credit: tvhistory.tv - Copyright MZTV Museum

Unlicensed Radio Frequencies Gain Space In Technology Shift

There was a time when one wanted to implement a radio based communications strategy, one had to do a site survey to see what frequencies were being used, apply for a license from the Federal Communications Commission (FCC), and once approved, set the devices used to the specific frequency and hope that there we no conflicts with other radio based devices that might roam into ones radio space.

Pressure to open up radio communications applications and the advent of frequency hopping/threading management technology helped to open up the use of frequencies that did not require a license from the FCC.

TR-005 Panasonic "Flying Saucer" TV (1971) - Image Credit: tvhistory.tv

Fast forward twenty (or so) years and technology advances combined with FCC policies that recognize the shift in available frequencies, a new world of unlicensed frequency band applications is set to be available in 2009 when Television goes digital.

Excerpts from ARS Technica -

FCC opens up "white spaces" to consumer electronics
by Nate Anderson - ARS Technica - 10/13/2006

The FCC officially signed off on the plan to allow low-power wireless devices to operate in so-called "white spaces" in the television spectrum. The Commission laid out a roadmap for this plan last month, but only issued the "First Report and Order" that actually authorizes it yesterday.

Here's how the scheme will work: consumer electronics devices will be allowed to operate in the portion of the TV spectrum being vacated by broadcasters as they switch to digital broadcasts in 2009, with some restrictions. Channel 37 is out - it's used by radio astronomers. Channels 52-69 are also out, since they have been allocated for public safety use. Finally, channels 14-20 might be out (the Commission has asked for more information) because 13 US cities currently use parts of that spectrum for public safety communications.

Sharp 5 inch B&W Transistorized TV (1981) - Image Credit: tvhistory.tv

While manufacturers can begin to design and certify their devices in the next few months, they cannot go on sale until February 18, 2009. Even though the spectrum in question should be available after that date, the FCC is still concerned that unlicensed devices in the band might generate interference that could affect the digital TV signals, and they plan to conduct extensive internal testing (and possibly adopt more rules) to ensure that this doesn't happen.

The Commission also mandated a dynamic frequency selection mechanism be built into every device, so that it does not interfere with other devices in the immediate vicinity. It may also decide to enforce the "geo-location" rules ...
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... where a professional installer (or the devices themselves) would use GPS to check the installed location against a database in order to avoid potential interference.

Implications
This was a decision that was easy for the commissioners to like. Michael Copps, one of the two Democrats on the Commission, pointed out that the US is falling behind in broadband - the International Telecommunications Union ranks us at number 15. Copps believes that opening up a new chunk of spectrum will help pave the way for wireless broadband services like WiMAX that can help bring broadband to more Americans. "Make no mistake about it," he says, "it is a very grave situation. There is simply no way that our country can remain in the forefront of the global economy without developing a broadband infrastructure that is up to the task."
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"With our recent AWS auction and the upcoming 700Mhz auction," he says, "we are opening up a huge swath of prime spectrum to licensed use - and it seems to me, on the present record, that the appropriate balance is to open up the TV white spaces to unlicensed use."

JVC Model 3100D - "Pyramid" with clock - Transistorized - Approx 7" Screen which folds down (1978)

The approach that is ultimately chosen will have a huge effect on the uses that the spectrum is put to: Just think of the success of cordless phones and WiFi, two wildly successful wireless technologies that have taken advantage of unlicensed spectrum. On the other hand, think of the interference issues that result when your 2.4GHz cordless phone rings and disconnects your WiFi - welcome to the downside of unlicensed spectrum.
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Obviously, the opening up of unlicensed frequencies for consumer electronics use opens up these "freqs" for business applications hardware as well.

It's Change Or Die Tryin' At NACS

Exibitors, Conference Attendees, NACS Board Members, PEI Members, and members of the Press enjoy the NACS Show Welcome Reception in Las Vegas. Image Credit: ECJ-Symblogogy

It's Change Or Die Tryin' At NACS

This week, Symblogogy is visiting the National Association of Convenience Store's (NACS) tradeshow, titled NACS Show 2006, here in Las Vegas.

The overriding theme of most exhibitors and conference speakers throughout the show is clearly settled in the unsettled territory of a constantly changing world.

One conference session featured the changes happening in our purchasing habits as reflected through the changes in the technology we carry with us every day when we leave the house ... the cellphone. This device and its impact on how we will shop were even mentioned in the Opening General Session presentation delivered by NACS Chairman of the Board, Scott Hartman.

In the case of the conference session, Robert Wesley, CEO of MobleLime, described how his company was focused on delivering mobile rewards and promotions right to your cellphone while enhancing the process of purchase payments through RFID proximity information entry ... a process clich'ed as "Speed-Passing" in reference to the Mobil Oil pay-at-the-pump process for buying gas.

In this case, Wesley highlighted the technology that was being added to a Nokia phone where the customer, at checkout, would call up a payment method file stored in the phone (Visa, Master Card, American Express, and etc.) and simply wave the phone next to a RFID sensing/pick-up device at the counter, and walk away with the goods.

Excerpts from a press release from NACS -

Dizzying Pace of Change Presents Opportunities, Challenges for Industry
Contact: Jeff Lenard - jlenard@nacsonline.com - October 9, 2006

LAS VEGAS, NV - Demand for convenience has never been stronger, and that presents both challenges and opportunities for convenience store retailers, NACS Chairman of the Board Scott Hartman told attendees in the NACS Show 2006 Opening General Session on Oct. 9.

This demand for convenience was evident over the past year, when Hartman logged well more than 100,000 miles representing NACS on what he called "basically one long study tour."

"From the operating expertise that is evident in Asia, to the mastering of senses like food aroma and lighting at the retail level in France, to the sustained excellence of retailers throughout the U.S., I have seen new ways of doing business driven by changing consumer demands, and by technology." noted Hartman, who is president of York, Penn.-based Rutter's Farm Stores.
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"Time is money, and time is really what we sell," said Hartman. But convenience is what virtually every other channel is now trying to replicate, he noted.

Above all, the fresh and healthy image is key to today's customer, noted Hartman. "All over the globe the fresh presentation is the first thing customers are seeing as they enter stores, especially in Europe ."

Customers also expect what Hartman called "mass customization" - companies gaining efficiencies by making products in volume, but allowing the individual to customize products to their own needs. And they want their lives simplified, a trend that is evident in Asia .

"Clearly, technology will play an ever-increasing role at our stores. And it already is in Asia . The cell phone you have today acts nothing like the ones they are using in Japan and Korea . But you will soon see them here," said Hartman, noting that they already serve a customers' electronic wallet, personal scanner and personal navigation system and locator.

Cell Phones, Cell Phones, Cell Phones. Image Credit: Yahoo! News

"Customers will receive offers on their phones, redeem electronic coupons with their phones and Web applications will allow them to find the lowest priced products between them and their next destination," said Hartman. "As retailers we will market our gas prices to customers as they drive down the highway and customers will have their cars programmed to seek out food offers they prefer. The in-car convenience store billboard is closer than you think."

"NACS is doing much more that looking at the future of technology in our industry; it is helping to shape it." said Hartman.

"At NACS, we believe that technology is an investment, that if you make it wisely, it should yield a competitive advantage." said Hartman. "The technology building blocks that we've been putting in place must continue at the store level, and through the involvement of NACS and PCATS, they will make a difference in your operations."
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Hartman concluded by reminding retailers to stay true to their mission, despite the dizzying pace of change, which will only intensify.

"Only those that seek change, and embrace change will thrive. But let me also offer some caution. Know your competition, but know yourself even better. Seek to change, but don't change because of the competition. Competitors, after all, will come, and competitors will go. Put your real focus on your customer. Study them. Engage them. Learn from them. Change for them." said Hartman.

"Lastly, give back to your customers, your communities and your people any way you can. You'll get back more than you ever gave," said Hartman. "That has certainly been my experience in my own business ... and in serving as your chairman this past year."
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NACS FACTS

The NACS Show 2007 will take place November 6 to 9 in Atlanta, Georgia .

The NACS Show is ranked one of the 50 largest annual tradeshows in the U.S. The NACS Show 2006, which runs through Wednesday at the Las Vegas Convention Center, features the largest exposition ever at a NACS Show, with 380,000 net square feet of exhibit space.

NACS is an international trade association representing more than 2,200 retail and 1,800 supplier members. The U.S. convenience store industry, with over 140,600 stores across the country, posted $495.3 billion in total sales in 2005, with $344.2 billion in motor fuels sales.

Movie Tickets For The 21st Century "Mobility" World

MBO is proud to be launching at Emagine Theaters as they always seek to provide you the best experience in theater entertainment. That is why they are the first in offering you the convenience of MBO (trademark). The future is in your hands... Stay Tuned! Image Credit: Mobile Box Office

Movie Tickets For The 21st Century "Mobility" World

There was a time one had to go to the theater and stand in line to buy a ticket to see a movie.

Then along came the era where virtually every home had a computer where one would log-on, buy a ticket, go to theater and find the kiosk that one could retrieve the ticket with the insertion of a credit card. There are some of us who are still just getting the hang of this process.

Well, let's get used to the future. Today, we all would feel lost without a cellphone. We feel naked if we left home and forgot to bring along our phone. What if the cellphone we carried could buy tickets via a phonecall to the theater, and then we never had to stand in any line anywhere to get a ticket? How about if one would just have to show up with the phone they purchased the ticket with ... and have the screen scanned by the usher and you're in!?

Excerpts from the Film Journal International -

MOBILE MANIA
By Doris Toumarkine - FJI-VNU - Sep. 21, 2006

Made in Europe and Asia, but made for America?

In yet another example of innovative entertainment products, services, amenities and ideas incubating and flourishing overseas before finding their way stateside, mobile movie ticketing (m-ticketing) that turns cell-phones into bar-coded movie tickets has just arrived. Just maybe, such ticketing - different from printing tickets on home computers or retrieving them at theatres or their kiosks - will become as American as adopted leisure imports like rock videos, neon, anime, discotheques, reality shows, wine bars and even great coffee at every corner.

At least Michigan-based Emagine Entertainment, an exhibitor that operates 46 screens in three locations, thinks so. Last January, Emagine announced an agreement for the first of their three theatres with Michigan-based MobilRelay's Mobile Box Office (MBO), the only service that allows U.S. moviegoers to use mobile phones as tickets.

The barcode-based MBO service, initially begun for all shows at the 18-screen Emagine Canton, is now available at the 18-screen Emagine Novi Theatre. Chris Brandt, VP of operations for Emagine, expects an imminent rollout to a third venue, the ten-screen Hollywood Cinema in mid-Michigan.

MBO initiated their barcode-based software in the two theatres and, after glitches were fixed following the first rollout, the service is running smoothly. It goes something like this: All that cell-phone users need on their devices are color screens (for the color branding that MBO provides for its business customers) and web access. To order tickets to any Emagine show, filmgoers use their cells to go to MBO's mbo.com website, where they order tickets and, as in ordering tickets online or over the phone, supply credit card information. Once all is approved and confirmed, customers receive a confirmation barcode on their cell display that is later read by a scanner operated by theatre personnel at the theatre's entry point. The whole point of m-ticketing is to allow filmgoers to bypass the box-office lines or the wait at kiosks. Filmgoers love the convenience; exhibitors love the extra time filmgoers have to buy concessions.

Says Emagine's Brandt, "It all works smoothly, provided the filmgoer has pulled up the appropriate screen [with the barcode]. Otherwise, it can take time for whoever's manning the scanner to find the barcode, as [cell-phone] devices or services can vary." He adds that it's important that theatre personnel be properly trained on the scanner - although the procedure is not difficult - and that these personnel are used efficiently. For instance, getting managers during off-peak to deal with the scanners can take extra time.

For maximum efficiency, Brandt says the solution is to get ushers on the scanners. And those ushers must also be savvy enough to help customers find their ticket barcodes on their phones. The variety of carriers and devices doesn't make this easier.

Brandt explains that Emagine has about 20 ushers at each theatre and, thanks to ease of use, they can all master the scanners. "The trick is to be able to get the tickets up on the cell-phone screens. Sometimes our customers need a little training in retrieving the barcodes from the website, but once it's up on their screens, it's easy. For customers to arrive at entry points with that done is so helpful. And once they've gone through the e-ticketing process smoothly, they love it. It's about convenience, the fact that they can bypass a line of people at the box office."

Color LCD screen with barcode that can be read by ushers. Image Credit: Mobile Box Office

Variety aside, even the march of technology itself can present a problem: "Because some of the newer [device] screens are so small, MBO had to switch from 12-number barcodes to ten so that they would fit," says Brandt.
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Emagine works with MBO in their aggressive marketing campaign to promote the m-ticketing service. The tagline - "What can your phone do?" - is at the heart of the campaign, which involves both in-theatre advertising and outside promotions.

In-theatre, Emagine features MBO-produced m-ticketing commercials during their pre-shows. Says Brandt, "These are full-motion videos, not slide shows. There are also MBO posters in front of the box office, plus MBO has reps at the theatres Friday and Saturday nights promoting the service by handing out cards."
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Predictably, the primary MBO users are young adults, not kids, aged 18 to 30, who also comprise the main filmgoing demographic. Explains Brandt, 'This more or less also mirrors the 12 to 24 year-olds, that segment of the population that uses their cell-phones for so many things, especially texting. Many seniors use cells, but they'd never dream of using MBO."

Yet m-ticketing marketers may soon be calling all seniors: Seniors, unlike many teens, have credit cards and, for now, m-ticketing requires credit card payment.

Like its users, MBO's service is young and has a way to go in terms of amassing new customers. Brandt says that the percentage of tickets sold through MBO in July was about one percent, but points out that that percentage doesn't look so weak, considering July attendance at the two MBO-powered theatres was about 175,000.

Even the entrenched online movie ticket services don't do a whole lot better. The New York Times recently reported that for the non-blockbuster films, only about five percent or less of total tickets sold are through these established online services.
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In Europe, Asia and Oceania, music and sports fans have been using their mobile phones as tickets to music and sports events for several years; more recently, m-ticketing for movies has become the latest phenomenon.

As Brandt says, "Europe is light years ahead of us with this [m-ticketing] thing." Much of this overseas maturity has to do with the fact that these other markets have been way ahead of the U.S. with regard to cell-phone use and text messaging. But there are signs that the U.S. is catching up.

According to Verizon Wireless spokesperson Brenda Rainey, the carrier, one of the country's biggest, already has 54.8 million customers, with many of these responsible for the 12 billion text messages that were exchanged during the second quarter of this year. For the same quarter, 232 million picture messages were sent over Verizon.

All Verizon Wireless phones are capable of text messaging and all camera phones can send and receive picture messages, so barcodes will travel easily. And, at ten cents per text message, texting - done mostly by the young and shallow-pocketed - is cheap. Even picture messaging is only 25 cents to send or receive. And subscribers to this messaging service, mainly kids, get a deal via bundled packages, although Verizon also has a pay-as-you-go program for those who text less frequently.
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But just as technology gives, it also takes a little away, especially when it comes to the challenge of different markets and different devices embracing different formats. There are several kinds of text messages used worldwide, upon which m-ticketing is dependent. These are SMS (short message service), which is actually a binary service and is the simplest. There's also MMS (multimedia sending) and the more obscure EMS. All are pushed through the Net by WAP (Wireless Application Protocol).

EMS, which stands for Enhanced Messaging Service, is an extension of SMS on several networks. A collaboration of such device manufacturers as Ericsson and Motorola, it handles messages that can be displayed as SMS transmissions. But phones that are not EMS-enabled won't be able to deliver EMS' special text formatting (such as bold or italic) or its images and sounds.
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But the U.S. presents a different situation. He continues: "Carriers in the U.S. have generally chosen not to support binary SMS, so they are primarily delivering with a mix of MMS and WAP push. In Canada, it's a mix of all three. But whatever the kind of message, the user experience is very similar. A message arrives on the cell-phone, you open it, the ticket is displayed and this same ticket gets scanned for event access."

Paradoxically, as Cameron has it, the U.S. is both behind and ahead. M-ticketing may just be getting its start here, but "the U.S. is jumping beyond SMS, which is what has really caught on in Europe and Asia, and embracing MMS/WAP."
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And MBO has "imagined" growing its business beyond Emagine. "We're talking to a very big national chain right now and we'll probably announce that launch in a month or two. It will be in one or two theatres in Texas and will precede a monthly rollout."
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Hopefully, being an early adopter of m-ticketing will also pay off, but it's ultimately just about selling tickets, stupid! Declares Brandt, "I couldn't care less where [customers] buy tickets, as long as they buy."

Beyond short lines, long lines and online, there's that all-important bottom line. Says Brandt, hitting a metaphorical pause button as m-ticketing rages on: "Ultimately, the future of the theatre business will depend on the quality of films, no matter where the technology takes you."

Which doesn't mean a soft focus on where that might be. Brandt asserts, "I think we'll see that MBO is at the right place at the right time."
Read All>>

Best ID Security May Not Be Just Biometric

Entrust IdentityGuard is carried or worn around the neck of the individual. Image Credit: Entrust, Inc. via Avisian publications

Best ID Security May Not Be Just Biometric

Specific identification of an individual short of a DNA make-up can be achieved through many identification processes. A large investment has been made in systems based on biometric access, radio based proximity information exchange, and video software that can recognize individuals through data mining identifiers associated with ones face ... or body type.

Maybe the best identification solution to implement can also be one of the simplest. Maybe the easiest way to insure the identification of an individual is to rely on a two step authentication process that requires the individual, after entering a password, to interact with the process via a matrix matching grid that uses the individual's brain.

Oh, and by the way, this security solution is inexpensive and simple to implement.

Excerpts from CR80News -

Grid-based two-factor authentication comes to campus cards
Sweden’s Goteborg University deploys a visual challenge and response solution from Entrust
By Andy Williams, Contributing Editor, CR80News - Monday, September 25 2006

You log in with your password, then you're met with another screen with the following: A3, F4, J5. No, you're not playing Bingo. It's part of an authentication system created by Dallas, Texas-based Entrust. To supply the correct answers to A3, F4 and J5, you need a grid supplied by the company. It's a security solution that one Swedish university has chosen to protect its student records.

Entrust IdentityGuard "X-Y" matrix grid pad. Image Credit: Entrust, Inc. via Avisian publications

"Grid authentication is about an X-Y coordinate lookup system," said Steve Neville, senior manager of ID products and solutions for Entrust, Inc. a secure digital identity provider. "It's like reading a map and it's about being able to respond to the random challenges of a coordinate on a grid."

To help prevent attacks on student data and protect the records of its 60,000 students and faculty while facilitating access for authorized parties, Goteborg University in Sweden recently implemented Entrust's IdentityGuard.
----
A cost-conscious option for multi-factor authentication

The two-factor authentication system requires a password, plus the grid that's often printed on the back of a student's or faculty member's identification card, said Mr. Neville. It's a standard student card that's usable not only for identification but for other things, like accessing foodservice.
----
Either way, the grid is useless without the password and the password useless without the grid. The grid is the 'something you have' and the password is the 'something you know' in the multi-factor authentication scenario.
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"We wanted an authentication solution that would provide strong security but also would be easy to use for our students and faculty and also be economical to manage," said Sven-Elof Kristenson, IT manager at Goteborg University. "Because we can combine the Entrust IdentityGuard grid authentication capability with the identity cards we already issue to our students and faculty at the beginning of the school term, it fit seamlessly into our existing system and will give us the ability to make even more services available online for everyone."

The university also chose IdentityGuard because its grid authentication capability can be used to access records, file storage, reports, e-mail and calendar functions, said Mr. Neville. "It was a natural choice for stronger authentication. Ease of integration and usability also were factors that led to the decision to implement Entrust IdentityGuard."

Entrust IdentityGuard matrix grid pad information as it is applied to a computer log-in screen. Image Credit: Entrust, Inc. via Avisian publications

Adding 'machine fingerprinting' to the grid authentication

"ID Guard in and of itself is a platform for authentication," said Mr. Neville. It comes in six different flavors-authentication options --- ranging from the non-intrusive like machine fingerprinting and grid authentication to one-time password tokens, he added.

"One of the reasons Goteborg liked grid authentication is that it also delivers the flexibility to input other types of authentication. Inside our license model we don't force them to track which authentication they're using. They can choose which ones they want to use to protect student data," said Mr. Neville.

A risk can be assigned to student data to determine the type of authentication needed, he added. "It can be a simple process, like this type of information requires the grid and machine authentication. For students, the grid is totally fine because they're roaming around," said Mr. Neville.

ID Guard is a "software server based product that can also provide strong authentication for remote access," he added.
----
"When they (Goteborg University officials) were looking at security solutions, they were very sensitive to cost and how much change would be required. They looked at ID Guard as a very attractive solution versus one that could only be deployed to faculty alone because of the cost. It was also something they found very unique and something they could trust."
Read All>>

Realizing The Convergence Of Auto ID And Cellphone Technologies

The PIDION BIP-3010 Series Mobility solution. Features high durable design, full radio (CDMA, GSM, WAN), pistol grip option, and more. Image Credit: Daewoo

Realizing The Convergence Of Auto ID And Cellphone Technologies

Last week, Motorola agreed to purchase the automatic identification industry leading manufacturer Symbol Technologies.

It was only a matter of time where a major manufacturer and player in the mobility communications world sought to control, influence, and participate in the communication technologies that aid in retail transactions, warehousing, work-in-progress manufacturing, CRM (customer relations management), asset inventory management, supply chain efficiencies, and etc.

The PIDION BM-200 Series Image Credit: Daewoo

Throughout this last year, manufacturers from "Pacific Rim" manufacturing countries have begun to introduce handheld mobility solutions that incorporate functions that combine CDMA communications (cellphone), MicroSoft CE OS (best for PDA style touchscreen data collectors), PoS applications hardware (on-board printer, card swipe, and etc.), RFID sensors, 2D scanners (to read LCD screens for cellphone transaction verification), and more.

One company effort is marketed here in North America by Daewoo (more commonly known for automobile manufacturing). A major conglomerate business located in South Korea, Daewoo is introducing mobility solutions manufactured under the name of Pidion that combine many of the configurations and functionalities mentioned above.

The PIDION BM-1200 Series Image Credit: Daewoo

With the manufacturing innovation push seen from the Pacific Rim, this announcement now puts the introduction of these platforms into more of a catch up/partner up mode.

This from RIS News -

Motorola to Acquire Symbol Technologies
RIS News and Edgell Communications

Motorola and Symbol Technologies have signed a definitive merger agreement, under which Motorola has agreed to acquire all of the outstanding shares of Symbol for $15 per share in cash. The transaction has a total equity value of approximately $3.9 billion on a fully-diluted basis. As of June 30, 2006, Symbol had approximately $200 million of net cash. Upon completion of the transaction, Symbol will become a wholly owned subsidiary of Motorola. The acquisition is subject to customary regulatory approval and the approval of Symbol's stockholders, and is expected to be completed in late 2006 or early 2007.

In acquiring Symbol, which has the tag line "The Enterprise Mobility Company", Motorola is buying a business that includes wireless technologies, mobile computing, Radio Frequency Identification (RFID), and scanner technology commonly found in retail checkout counters. Symbol brings to Motorola more than 900 patents and thousands of enterprise customers.

Industry analysts weigh in on the acquisition:

Rob Garf, AMR Research: This one will shake up the market a bit. Having Symbol team up with Motorola gives the combined company the ability to tap into the cell phone market, and almost every U.S. consumer has a cell phone. Until now, the role of personal shopping assistant has been somewhat slow to take hold. On day one, this new company will have at its disposal a critical mass of users of this type of technology. Look at some of the retailers who have invested in handhelds - they have had to take on the capital costs, but now can rely on the consumer for the capital costs.

Greg Buzek, IHL Consulting: This acquisition finally brings credibility to the discussion of mobile commerce. Symbol has owned many patents in the area of scan engines and particularly small ones. They have had a history of vigorously defending and litigating those patents in the past to the point that many vendors have been unwilling to work with them. When it comes to mobile commerce, no single vendor has had all the pieces and Symbol had the missing scanner piece. With Motorola purchasing Symbol, mobile commerce and just mobility in all facets will take a strong step forward.

Bud Wagner, CSC Consulting Group: All in all, this acquisition promises to push RFID to the next level as retail and consumer product companies find creative ways to leverage the technology. This could become a powerful tool in optimizing an item's sell-through by having the right product in the right place at the right time.

Eric Austvold, AMR Research: This acquisition will inevitably trigger further consolidation as the likes of Nokia, Ericsson, and others look to snap up someone like Intermec, a Symbol competitor. Standing alone in this market just became unattractive. Motorola benefits from the timing. By acquiring an early RFID pioneer like Symbol, Motorola gets the benefit of Symbol's experience without the pain of initial investment. It also creates an opportunity to grow business from new enterprise customers by aligning with carrier partners like Cingular, AT&T, Verizon, or Sprint to provide new possibilities for mobile computing.
Reference Here>>

To match up with the access this aquisition provides, all the Daewoo PIDION is going to need is to develop a relationship with a cellphone service carrier partner ... or two ... or.

Exciting USB Power Innovation For Mobility Applications

Introducing our revolutionary new rechargeable battery - the USBCELL. Image Credit: Moixa Energy

Exciting USB Power Innovation For Mobility Applications

In the world of portable data collection and business mobility applications, one of the most vexing problems comes down to Ni-Cad or NiMH battery management schemes (will one have the power to do and complete the job at "hand").

An innovation that is simple but brilliant has just been introduced in England and, hopefully soon, to be available here in North America.

This NiMH AA cell can be used like a normal battery and can be recharged simply by plugging into a USB port. Image Credit: Moixa Energy

Batteries that recharge directly from the powered USB port of any properly port equipped computer.

Excerpts from Trusted Reviews -

USBCELL: Batteries That Recharge Through USB
Author: Gordon Kelly, Trusted Reviews - Published 20th September 2006

I love innovation - who doesn't? That said, my tastes lie specifically in the kind which make my life simpler and easier. We're talking email over post, wireless over wired, LCD over CRT and potentially now 'USBCELL' batteries over your traditional AAs.

Produced by Moixa Energy, USBCELL batteries are simply batteries that recharge from any USB port. They require no separate recharging devices, cradles or cables and can be used exactly like a normal battery. The design itself is rather like a typical memory stick with its flip top lid and they could be set to deliver the same killer blow to the battery market that memory sticks did to floppy discs.

At this stage the one unknown is how well they perform when compared to their established counterparts and how long they take to charge. The new wave is coming, however, and though they launch in the familiar AA they will soon comprise a full range of standard formats including phone and camera batteries and come with C & D size converters.

Available now and costing just 12.99 British Pounds [ed. approximately $24.50] for two AA USBCELL batteries (including VAT and delivery from the company's website) I'm forced to say something I never thought would pass my lips: I'm quite excited about batteries.
Reference Here>>



After careful review of the manufacturer's website, here are a few Frequently Asked Questions that should help to fill in some of the understanding of this new and exciting portable equipment power innovation.

User Instructions FAQs

How long do USBCELLs take to charge through a USB port?

USBCELL will charge in about 5 hours to 90% charged, or less if the battery was not fully drained, and then enter a trickle charge mode (LED flashing). The LED will go off after this.

Can USBCELL's be charged in NiMH battery chargers?

Yes. USBCELLs can be charged in any good quality overnight or quick (5-7 hour) battery chargers designed for Nickel Metal Hydride (NiMH) batteries. The recommended charge is 250mA for 7 hours. Consult your NiMH charger manual to confirm suitability. With the cap on, they work just like a normal rechargeable NiMH battery as the circuitry is bypassed. Do not use fast chargers which claim to take less than 1 to 2 hours.

Will USBCELLs suffer from the 'memory' effect?

Rechargeable cells can be recharged hundreds of times but the lifetime will reduce slightly if cells are always partially charged or topped up. The User Guide gives instructions for how to prolong USBCELLs life and maintain best performance. However, since USBCELL is capable of several hundred charges, occasional top-ups when you need urgent power will not have a significant effect.

Can the USBCELL be used in devices that normally take 1.5V (alkaline) throw-away batteries?

Yes, USBCELLs, like other rechargeable cells, should work with almost all AA-powered devices.

Example of consumer electronic devices using AA cells. Any portable data collector or hand held computer that can use AA cells can benefit from USBCELL solutions. Image Credit: Moixa Energy

Do USBCELLs require drivers to work with my computer?

No, USBCELLs draw power from the USB socket and do not need any special drivers to charge.

Can I use fast chargers to charge USBCELLs?

USBCELLs should not be used with any charger rated at a current above 600mA. In general USBCELLs should not be charged by any charger that has a charge time of less than 2 hours.

Is USBCELL faster to charge than normal rechargable batteries?

USBCELL takes about 5 hours to charge, this is normally classed as fast charging. They will charge in the same time as other rechargeable batteries of the same capacity in a normal NiMH charger.

Top-Up - Charging for just a few minutes provides extra hours of instant use for most input devices. Adaptors soon for C and D cells. Image Credit: Moixa Energy

Does the USBCELL last as long as other rechargeable batteries?

The capacity of USBCELL is 1300mAH - this is greater than some ordinary NiCd and NiMH batteries. Some new high-capacity NiMH batteries can go up to 2500mAH. However, with USBCELL you can simply recharge or top-up by plugging into a USB port rather than going off to find a wall charger and adaptor. Also, make sure that the battery is fully charged - the charge should take about 5 hours by USB and the light should go off when USBCELL is fully charged.

Does the type of USB port matter?

Most USB ports are 'powered' and capable of providing up to 500mA current at 5 volts (USBCELL should draw about half of this maximum current). Because of the AA size of USBCELL, it may be difficult to insert into some inaccessible or recessed USB ports. If it's difficult to insert, don't force it!

Can I charge from a USB hub?

USBCELLs can be charged in most powered USB hubs. These should be connected to an external power supply during use. In some powered hubs, USBCELLS can be charged even without the connection to a PC, provided that the power is connected. Some USB hubs are not separately powered, and so these may not provide enough power to each socket. If you do need to use an unpowered hub, we recommend that only one USBCELL is charged at one time, with no other high-power peripherals connected.

Recharge in Powered Hubs - Multicell charging in Hub. Image Credit: Moixa Energy

How do I know my USBCELL is charged, when charging in a USB port?

A small LED light at the USB plug end of each USBCELL indicates that it is charging. If the cell is already charged the LED should start flashing within 15-25 minutes and stop after a further 10 minutes of top-up charge. If the cell is less charged, the LED will stay on and the battery will continue charging until full charge is detected at which point the LED will flash for 10 minutes. If the USBCELL was fully discharged it will charge for 5 hours and then trickle charge for 90 minutes. When the LED switches off then the USBCELL is fully charged. Batteries get warm during charging, to a peak temperature when fully charged. It is therefore not recommended that you recharge batteries immediately after charging. Batteries should always be charged at room temperature.
Reference Here>>

The Cannon That Will Sink The Ships Of DVD Piracy - Embedded RFID

Johnny Depp portrays character 'Captain Jack Sparrow' in a scene from the film 'Pirates of the Caribbean: Dead Man's Chest' in this undated publicity photograph. Image Credit: REUTERS/Peter Mountain/Disney Enterprises/Handout

The Cannon That Will Sink The Ships Of DVD Piracy - Embedded RFID

"Avast ye, you soil-licking varmints." ("Hello"), today - September 19, 2006 - is "Talk Like a Pirate Day" throughout North America so says talklikeapirateday.com.

TLAPD was founded by John Baur and Mark Summers during a raquetball game and Talk Like a Pirate Day has taken the world by storm. The thing just sort of grew, and then took off in 2002 when Pulitzer Prize-winning columnist Dave Barry got wind of it and wrote about it in his Miami Herald Column. (HT: talklikeapirateday.com)

Yar, but I digress! Aye, piratin'o' music and mo'ie D'd's has been a real problem throughout the world. Gar, Where can I find a bottle o'rum?

Just yesterday, it was reported that Chinese police and copyright officials have raided 537,000 illegal publication markets and distributors in major cities such as Beijing, Shanghai, Tianjin and Liaoning Province.

Arrr, these operations seized 13 million pirated D'd's. Aye, me parrot concurs (these operations seized 13 million in pirated DVD's).

About 500,000 pirated CDs and DVDs are destroyed during a recent crackdown on pirated audio and video products in Shenyang, capital of Northeast China's Liaoning Province. Image Credit: China Daily

Arrr, technology rides t' the rescue with embedded RFID. A pence for an old man o'de sea?

Excerpts from VNU Net -

DVD chips 'to kill illegal copying'
Embedded radio transmitter chips to track movie, music and software discs
Simon Burns in Taipei, vnunet.com 15 Sep 2006

DVDs will soon be tracked with embedded radio transmitter chips to prevent copying and piracy, according to the company which makes movie discs for Warner, Disney, Fox and other major studios.

The technology, which can also be used for Blu-Ray and HD-DVD discs, will allow movie studios to remotely track individual discs as they travel from factories to retail shelves to consumers' homes.

Home DVD players will eventually be able to check on the chip embedded in a disc, and refuse to play discs which are copied or played in the 'wrong' geographical region, the companies behind the technology expect.

"This technology holds the potential to protect the intellectual property of music companies, film studios, gaming and software developers worldwide," said Gordon Yeh, chief executive of Ritek Corporation.

Ritek is the world's largest DVD maker, and its U-Tech subsidiary will make the discs.
U-Tech and IPICO, the company behind the RFID chips used in the discs, announced today that production of the 'chipped' DVDs will begin at U-Tech's main plant in Taiwan.

DVD-R is a high capacity optical disc, which is ideal for high volume data recording, archiving and playback. RIDATA DVD-R ensures high durability and reliability for a variety of recording situations, making it a versatile storage solution. Image Credit: RITEK USA/Advanced Media Inc.

U-Tech's global network of factories stamps out some 500 million pre-recorded DVDs and CDs a month for major movie studios, recording studios and video games companies.

After ironing out bugs in the manufacturing process, U-Tech will work with major movie studios on a large-scale test of an RFID-based supply chain management process at its manufacturing plant and distribution centre in Australia.

RFID readers will then be built-in to home DVD players to extend the anti-copying technology into homes as part of a digital rights management system.

U-Tech described this as the "real end game" for the chip-on-disc technology, which would "eliminate optical disc piracy in the entertainment and IT sectors".

IPICO claims that its RFID tags can be read from at least six metres away, and at a rate of thousands of tags per minute. The passive chips require no battery, as they are powered by the energy in radio waves from the RFID reader.
Read All>>

Ahoy, this would effecti'ely put an end t' pirate production o D'd's as we know them. Aye, me parrot concurs - (this would effectively put an end to pirate DVD's as we know them).

Tech Strategies: Security Lags As Shoplifting Soars

Shoplifting has gone professional. Retailers report recent growth in organized retail crime, where professional theft rings steal merchandise in large quantities. These thieves target pricey items with high resale value such as designer apparel, newly released DVDs, and popular cosmetics. And they're stealing more than you'd guess: The average dollar loss per shoplifting incident has risen from $622 in 2004 to $855 in 2005. Image Credit: BusinessWeek

"Gross-Inflation" is hitting the shoplifting industry by as much as 37% in average dollar loss per theft over this last measurable year. With rings of professional shoplifters, some with ties to funding Islamo-Fascist terror networks, the retail establishment (and, thereby, the consumer) is under assualt.

Security system designers, value-added resellers and Information Technology integrators respond to retailers requests for heightened security with an array of high-technology tools to thwart this major threat to their (and our) shopping environment.

Excerpts from BusinessWeek -

Attention, Shoplifters
With $30 billion in theft, there's a revolution in surveillance systems
By Elizabeth Woyke - BusinessWeek - Issued for 9-11-2006

There are 6 million video cameras mounted in stores across the U.S., according to market researcher J.P. Freeman Co. Their unblinking eyes are everywhere, watching exits and peering down aisles. You already knew that. But you probably had no idea how smart some of these cameras are getting.

Some Macy's (FD ), CVS (CVS ), and Babies 'R' Us stores have installed a system called the Video Investigator, whose advanced surveillance software can compare a shopper's movements between video images and recognize unusual activity. Remove 10 items from a shelf at once, for instance, or open a case that's normally kept closed and locked, and the system alerts guards sitting in a back room -- or pacing the sales floor -- with a chime or flashing screen. The system can predict where a shoplifter is likely to hide (at the ends of aisles, behind floor displays). A search function spots sudden movement that might indicate a large spill, prompting workers to clean up before it leads to a slip-and-fall accident and a costly lawsuit. And if someone opens a back door at 2 a.m., the system will record who sneaked in and link it with snapshots of the previous and next persons to use the door. Alerts, complete with images, can be sent to handheld devices, keeping retailers informed 24/7, says Jumbi Edulbehram, vice-president for strategic marketing at IntelliVid Corp., a Cambridge (Mass.) firm that makes the Video Investigator system.

Store managers these days need all the high-tech help they can get. Increasingly, they're under assault from organized gangs of professional shoplifters. These skilled thieves walk off with huge amounts of selected items and resell them at discounts. The pros are driving up losses dramatically, to $855 per shoplifting incident last year, from $265 in 2003, according to a survey by the University of Florida's Center for Studies in Criminology and Law. All told, stores lost $30 billion to shoplifting and employee theft in 2005.

To fight back, store chains are embedding smarter devices everywhere, from checkout stands to shelves to places you wouldn't even think of (and can't see). At the same time, more of these systems are talking to each other, sharing data about shoppers and employees alike.

INVISIBLE DETECTIVES

Even the lowly shopping cart has been recruited in the war on retail crime. A surprisingly common -- and simple -- scam is the "push out," in which thieves load up carts and just dash out of the store. The solution: Gatekeeper Systems Inc. (GKR ), in Irvine, Calif., invented an electric-fence technology for carts. The system, called GS2, uses radio frequency identification (RFID) chips, which are embedded in cart wheels, and antennas around the periphery of the store that broadcast signals to the chips. When a cart approaches the store boundary, its wheels lock up. They can be unlocked only by an employee who activates a remote-control device. "[Thieves] can't push the cart," says Brett Osterfeld, Gatekeeper's vice-president for sales and marketing. "They'd have to pick it up and walk with it." Target Corp. (TGT ) and several smaller chains have signed on.

To thieves, infant formula is "gold in a can;" relatively expensive and easy to resell on the street. Other "hot" items at supermarkets include batteries, film, and disposable cameras. Image Credit: Nestlé USA

Those handy rungs underneath the cart are great for hauling bulky items like diapers, pet food, and beer. The problem for retailers is that shoppers often "forget" to pay for the goods. The answer? Seven grocery chains, including Pathmark Stores (PTMK ) and Giant Eagle, recently began testing LaneHawk, a system by Evolution Robotics Retail Inc. that uses visual pattern recognition to spot hidden packages. Cameras mounted in cashier stands about six inches off the ground scrutinize the bottom racks of passing carts. If an item matches an image in a database, the system computes the price of the product and adds it to the customer's bill. "It's like biometrics for packages," says Alec Hudnut, CEO of Evolution Robotics Retail.
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Still, a few chains, including Best Buy Co. and (BBY ) Tesco Corp. (TESOF ), are testing RFID's ability to monitor oft-stolen items like DVDs, jewelry, and apparel. Those chains have experimented with TrueVUE, a system by VUE Technology Inc. that uses antennas placed under a shelf's laminated surface to communicate with RFID tags on merchandise. Store employees could also wave RFID-reading wands over racks of clothes to see which items have moved. "The program wakes up the tags, which send back their serial numbers, in effect saying, 'I'm here,"' explains VUE CEO Robert Locke. EAS tags only activate when they approach a store exit, but RFID-equipped smart shelves can notify security the minute a large number of items move.

No part of a store churns out more data than cash registers. This is also where employee theft is most likely to pop up. New types of transaction-monitoring software pull information from registers into a central database and look for unusual patterns. An excess of manually entered credit-card numbers could be a sign that employees are stealing customers' information. Returns of the same type of sweater 10 times in a row at one register, for instance, could indicate that an employee is processing fake returns for a friend or being conned into making fraudulent returns. Retailers decide what to track and how often, and set parameters for alerts. Often the feedback points to problems other than dishonesty. "It might be a hardware issue or a sign that an employee needs more training," says Cheryl Blake, a vice-president at Aspect Loss Prevention, which works with Children's Place Retail Stores Inc. (PLCE ) and Ross Stores Inc. (ROST ) "Whatever it is, the transactions will stick out and tip off management to investigate."
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"Retailers can pull data from all these systems, look at them together and connect the dots," says Rob Garf, a research director at AMR Research.

The newest retail data-mining programs also sync up with video to permit a more comprehensive look at activity at cash registers. With the press of a button, managers can highlight irregular register transactions on their computers and pull up corresponding video. This could enable them to catch cashiers who cut deals for their friends or pocket cash refunds themselves. It could also curtail fraudulent returns by tracking the route customers take to the customer service desk -- do they head straight there or meander through the store, picking up their "return" merchandise along the way?

MUM'S THE WORD

Despite this revolution in retail tech, you won't find many stores bragging about their new security tools. No one wants to tip off shoplifters or advertise that they suspect their customers. That's why so much of the technology is hidden in the first place. But another reason stores don't talk much about surveillance is that they know it sparks concerns about privacy. Consumer groups and legislators have opposed the spread of RFID and video surveillance for just that reason. "Item-level RFID creates privacy and security problems that are unacceptable, even for antitheft purposes," says Dr. Katherine Albrecht, founder and director of Consumers Against Supermarket Privacy Invasion and Numbering.
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If every retail chain is not yet sold on the benefits of relying so much on chips and software to patrol store aisles, experts still believe the industry will keep moving toward ever-smarter, ever-more-networked tracking systems. The number of video cameras installed in stores is expected to grow by 20% over the next year, according to J.P. Freeman. "It won't be long before retailers link their store data to crime reports and statistical analysis to predict losses... and deploy the right technology and people to stop them," says LaRocca of the National Retail Federation. Already, tech startups are working on even more promising -- or intimidating -- systems to track customers through the entire shopping process. There's even talk of stores installing facial recognition programs and license plate readers to catch repeat offenders.

You're not likely to notice much of a difference at your favorite shopping haunts. But make no mistake -- they're noticing you.

Read All>>

... And thank GOD they are.

The Consumer & Retail Economics Of EFT

Image Credit: WESCO "Your Neighborhood Store"

The Consumer & Retail Economics Of EFT

At WESCO, a regional convenience store chain in Michigan, Electronic Funds Transfer (EFT) service charges greatly effect consumer fuel purchases at the pump.

The 51 store operation processes approximately 2.5 million transactions per month, with more than 70 percent charged to Visa and Mastercard EFT (debit and credit) cards, which both carry costly transaction fees.

In an effort to keep and gain customers as well as make the fuel operation a little more profitable, WESCO puts smiles at the pump by combining its own branded debit card with a consumer loyalty program that automatically discounts gas prices at the time of the fuel purchase.

Excerpts from the American Banker via Cardinal VC -

Debitman Issuer Offers Gas Discount Incentive
By American Banker - 08/22/2006

WASHINGTON -- Debitman Card Inc. said Monday that it has signed a new merchant issuer for its payment cards, the fuel and convenience store operator Wesco Inc.

Wesco began offering the Debitman cards under its own brand this month at its 51 Michigan locations. The Muskegon, Mich., company is promoting the PIN debit cards with a program that knocks 2 cents a gallon from the price of gas.

R. Scott Hatfield, Debitman's founder and vice president of business development, said in an interview Monday that Wesco is the first company to implement a gasoline rewards program, though Debitman has discussed the idea with other companies and another merchant is testing a similar gasoline rewards program.

"The bottom-line is retailers want to incent their consumers to make purchases with cards that are more retailer-friendly," Mr. Hatfield said.

Debitman, of San Mateo, Calif., operates the Retailer's Network, which allows merchants to cut their card processing costs by routing transactions across the automated clearing house system instead of the networks operated by credit card companies.
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Wesco plans to expand the rewards program in September, so in-store purchases will generate points, which can be redeemed for additional discounts on gas.

Merchants accepting Debitman cards pay a flat fee of 15 cents per transaction, which is generally lower than the fees for using bank-issued debit and credit cards. Debitman card-issuing merchants also get a 6- to 9-cent rebate per transaction when their cards are used at their stores or at other merchants that accept Debitman.
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Wesco tested the cards in June and July at two of its stores. Mr. Hatfield said it has "programmed the pump to recognize" his company's six-digit bank identification number, "and every time you activate the pump with a Debitman card, you automatically get a rollback on the price per gallon."

Customers enter a PIN to authorize an ACH debit to their bank account, "and they're not penalized for using their PIN debit card," he said.

He noted that some banks charge a fee for using their debit cards for PIN debit transactions to discourage that use of the cards; banks earn higher interchange fees from signature debit payments.

Debitman has both card issuers and card acceptors in its network. Wal-Mart Stores Inc. agreed in November to accept Debitman cards, but the retailing giant does not issue them. In January two regional supermarket chains -- Binghamton Giant Markets Inc. in New York and HAC Inc., which operates 67 supermarkets in Oklahoma and Kansas -- agreed to issue Debitman cards. Giant Markets now issues the Giant Extra Plus Debitman cards to shoppers.
Read All>>

Efficiencies in retailing by combining EFT and loyalty card programs make sense when the benefit becomes a two-way street.

Now, if banks can resist charging fees for "proprietary" debit transactions, this new chance at a partnership between the banking community and retail would result in a boon to consumerism.

RFID For Human Babies

The number of total switching incidents is as high as 20,000 per year in the U.S. - Journal of Healthcare Protection Management. Image Credit: VeriChip Corporation

RFID For Human Babies - It's Not What You Think

It would be easy to assume, when one hears about RFID for use on babies, that a chip would be implanted under the skin of the baby. In fact, the issue of human RFID tagging was explored here at Symblogogy as its very first post.

This is not the case, however, VeriChip has made special RFID bracelets and necklaces for use in the hospital environment.

Applications for use in the Military, it turns out, will not escape the "under-the-skin" approach to tagging.

Excerpts from eWeek Magazine -

VeriChip Sells First Baby Protection System, in Talks with Military
By Renee Boucher Ferguson, eWeek.com - August 25, 2006

VeriChip, the company that makes human-implantable RFID chips, is looking to span its equipment from newborns to the military's enlisted.

The company announced Aug. 24 that it has made the first sale of its infant protection, wander prevention and staff duress system to the Brampton Civic Hospital in Brampton, Ontario. Separately, the company confirmed a day earlier that it is in talks with the military to test its implantable chips in two branches of the military.

VeriChip said in a press release Aug. 24 that the Brampton hospital, under construction now, is spending $750,000 to have VeriChip's platform and applications installed at its newest facility.

VeriChip's infant protection system is really two separate above-the-skin solutions, one a band similar to a standard hospital bracelet that has an embedded RFID chip. The second option, called the Halo skin-sensing system, is similar to an electronic key fob for a car that can be attached to an infant's ankle or a patient's wrist. Another key fob-type device can be worn around the neck of staff members to use as a personal panic button.

Using a handheld reader, healthcare professionals are able to securely access a patient's unique VeriChip ID number which can be looked up in a designated secure healthcare information database, allowing them to immediately take the safest course of action. Image Credit: VeriChip Corporation

But VeriChip also has a separate patient identification system, VeriMed, which is used beneath the skin. Once the chip is implanted in the fatty part of a person's arm (or in the hand, as chip volunteers have done), it displays a 16-digit identifier when tapped by an RFID reader. The number accesses health information in a database that requires a username and password for admittance.

VeriChip, of Delray Beach, Fla., confirmed in media reports that Scott Silverman, its board chairman, has held informal meetings with U.S. Navy and Air Force officials to discuss a feasibility study of its VeriMed system.

"These were preliminary discussions in informal meetings about the VeriMed project...and how it might be incorporated into the Department of Defense's electronic health records program," said Nicole Philbin, a spokesperson for VeriChip.

The VeriMed chip, which is designed "to give voices to the voiceless in the most crucial of times," according to Philbin, would be applicable to both veterans and enlisted personnel in both the Navy and Air Force.

The idea with the VeriMed chip is that data can be accessed even if a patient is severely injured or unconscious.

While civilians have the option of choosing how much information is accessible on the VeriMed database, it's not clear what the guidelines would be for enlisted personnel.
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The government is no stranger to RFID. In July, the Army paid $3.76 million to 3M to implement an RFID-based system that will track medical files at its massive Fort Hood Army base in Texas—the military's largest active-duty domestic base. Fort Hood houses the active medical records of more than 150,000 men and women stationed there—and their dependents' records.

In concert with NATO, the U.S. military is using RFID to track goods in war theaters as well as through global supply chains. The U.S. State Department, in concert with the Department of Homeland Security, mandated RFID-chipped passports by the end of this year. And the U.S. Food & Drug Administration recently released its recommendations for the pharmaceutical industry regarding the use of RFID to track counterfeit drugs.

The FDA also approved the use of VeriChip's VeriMed implantable chip in October 2004.

In a document titled "Guidance for Industry and FDA Staff" released in December 2004, the FDA made a couple of recommendations for VeriChip as it goes about its business of chipping individuals and groups like the military's enlisted: "When discussing the issue of medical devices that store, access, and/or transfer information externally, you should address the concept of information security," reads the document.

The FDA also identified a number of risks associated with an implantable RFID chip, including adverse tissue reaction, migration of the implanted transponder, electromagnetic interference and electrical hazards.
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Lab Nets Learning Experience - Biometric COKE

UCSD Biometric Vending - Facial Recognition Screen. Image Credit: UCSD SodaVision

College is such a fun time. Only in the lab would one think up a way to use one of the more difficult and complex approaches to "Speedpassing" a soda.

This spring, A group of grad students at the University of California, San Diego (UCSD) are in the process of creating what one of the students calls the "most over-designed soda machine in the world."

The idea they were able to prove (almost - 80% accurate) was that a group of dedicated computer science students could outfit a soft drink machine with an automobile computer and program it to accept account creation and verification input from a barcode scanner and a few biometric image process devices.

Excerpts from CR80News.com -

Grad students in San Diego build biometric vending machine
By Andy Williams, Contributing Editor - Monday, July 31 2006

The project, called SodaVision (sodavision.com), is the brainchild of UCSD engineering associate professor Stefan Savage.

http://www.sodavision.com/

"I came up with the idea in June, 2005, but we didn't get the soda machine until later that year. I had some discretionary money, so I bought a generic machine," he said. "The biggest problem was putting through a purchase order for a 'biometric soda machine.' I got a few weird looks. I never actually gave the project the name. That came from the students."

He said the computer science department at UCSD has had a soda and snack cooperative, nicknamed Chez Bob by the students, for some 20 years. "You would put in 50 cents and take out a coke. About 10 years ago, someone came up with the idea that you could log into a computer, list the amount of money you're depositing into the (Chez Bob) account; then when you buy a coke, log that in against your account," said Dr. Savage. "I thought, 'Here we are a leading computer science program, we should have something better.' So, I offered it as a project for the grad students."

What SodaVision ended up becoming - and it's still a work in progress - is what second year computer science grad student Tom Duerig calls "the most over-designed soda machine in the world."

"I wanted it to be incredibly easy to use," said Dr. Savage. "I bought the soda machine and a touch screen and the fingerprint reader, a Fujitsu MBF 200. We looked for a fingerprint reader that would work with our software and with Linux. Now they (the students) have actually torn (the fingerprint reader) apart and rewired it to work with the machine."

The students built the interface. "I had one guy design a touchscreen that looks like the one used in Star Trek. Somewhere along the way they added a camera and another group added a 2D laser barcode scanner," said Dr. Savage.

The camera, a web cam, is for facial recognition, the next big step in the technology-heavy machine. "The students even wrote the software to recognize the images," he added.

"Our goal is to have the soda machine simply recognize who is standing in front of it when a soda is vended or money is inserted to charge or deposit into the appropriate account. And thus was born SodaVision," wrote Mr. Duerig in a paper explaining the project.
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The brain inside SodaVision is a small computer designed for cars. It is stored inside the soda machine and is equipped with an Intel Celeron 2GHz processor with 512MB of RAM. The computer fit the students' needs in that "it was very small, slow, quiet, and didn't produce a lot of heat," explained the 23-year-old Mr. Duerig. "We briefly considered putting a quad CPU 1U server in there as that would have fit, but we decided against it for heat reasons."
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The machine is available to grad students, faculty and staff in a locked room accessible via a card reader on the door.

While the team of five grad students concentrate on increasing the accuracy of the facial recognition software, Dr. Savage still utilizes just the fingerprint reader. "I use it every day, because I'm used to using the reader."

"The only way to purchase soda is when you're logged in (currently via the fingerprint reader). You can also deposit money into your account (through a slot attached to the machine)," said Mr. Duerig. The soft drink or candy bar or other snack is then scanned with the barcode reader and charged against the user's account.

Right now, the facial recognition part of SodaVision is carrying an 80% accuracy rate. "We're shooting for 95% accuracy." Eventually, the plan is for "dual recognition," added Mr. Duerig. You sign in with your thumbprint, and then go for facial recognition. But until we hit the magic 95% accuracy, it isn't integrated with the payment/purchase system," he added. "I suspect we'll hit that mark at the end of this summer for the unveiling of the project."
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I really do know that this soda machine is really just a project but jeeeeez ... to get a COKE, one has to:

First, access the room the machine is located via a proximity access card reader at the door (don't forget the card).

Then, one needs to place a finger on a fingerprint reader to verify that an account exists.

Next, one needs to stand in front of a webcam to have a picture taken so that the image can be processed by a car computer and matched with a previous image stored in the database.

Then, make a soda selection from the machine.

And finally, place the barcode printed on the COKE can in front of the barcode reader. Once scanned, the purchase is added to the corresponding account associated with the fingerprint and the face image in the database.

To leave the room, one may have to use the proximity access control card to open the door in order to get out.

Frankly, I like the idea Europe uses for applying access technology to purchasing from a vending machine. The process uses a cellphone, a telephone number, an account (ones enabled cellphone account), a 2-D Matrix style code (QR Code), and a scanner that can read the LCD screen of the cellphone (example - QK-11 scanner from DENSO).

The process is simple, verifiable and explained in a previous post here at Symblogogy.