RFID in inventory systems
An advanced automatic identification technology such as the Auto-ID system based on the Radio Frequency Identification (RFID) technology has two values for inventory systems. First, the visibility provided by this technology allows an accurate knowledge on the inventory level by eliminating the discrepancy between inventory record and physical inventory. Second, the RFID technology can prevent or reduce the sources of errors. Benefits of using RFID include the reduction of labor costs, the simplification of business processes and the reduction of inventory inaccuracies.
RFID mandates
Wal-Mart and the United States Department of Defense have published requirements that their vendors place RFID tags on all shipments to improve supply chain management [5]. Due to the size of these two organizations, their RFID mandates impact thousands of companies worldwide. The deadlines have been extended several times because many vendors face significant difficulties implementing RFID systems. In practice, the successful read rates currently run only 80%, due to radio wave attenuation caused by the products and packaging. In time it is expected that even small companies will be able to place RFID tags on their outbound shipments.
Since January, 2005, Wal-Mart has required its top 100 suppliers to apply RFID labels to all shipments. To meet this requirement, vendors use RFID printer/encoders to label cases and pallets that require EPC tags for Wal-Mart. These smart labels are produced by embedding RFID inlays inside the label material, and then printing bar code and other visible information on the surface of the label
Human implants
Implantable RFID chips designed for animal tagging are now being used in humans. An early experiment with RFID implants was conducted by British professor of cybernetics Kevin Warwick, who implanted a chip in his arm in 1998. Night clubs in Barcelona, Spain and in Rotterdam, The Netherlands, use an implantable chip to identify their VIP customers, who in turn use it to pay for drinks.
In 2004, the Mexican Attorney General's office implanted 18 of its staff members with the Verichip to control access to a secure data room. (This number has been variously mis-reported as 160 or 180 staff members, though the correct number is actually 18.
Security experts are warning against using RFID for authenticating people due to the risk of Identity Theft. For instance a Mafia Fraud Attack would make it possible for an attacker to steal the identity of a person in real-time. Due to the resource-constraints of RFIDs it is virtually impossible to protect against such attack models as this would require complex distance-binding protocols.
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