In the world of banking, attention has turned to the prospect of using RFID technology for contactless transactions via bank cards. While this in of itself is a security concern, John Leyden brought to light in his article (http://www.theregister.co.uk/2008/01/27/paywave/) that some banks have started phasing in these cards without the consent of their customers.
In the UK, some banks such as Halifax are trying a system backed by Visa known as PayWave. Under PayWave, customers can make transactions under £10 without the need for a pin or having to sign anything. In the article, we find that Pete is one of the customers upon whom this technology has been pushed without their consent. After destroying the new PayWave card (which he did not request) out of security concerns, Pete found that Halifax had also cancelled his old card. The replacement card Halifax ended up sending him was also a PayWave card. Though Pete was eventually able to obtain a non-PayWave card by enough complaining, it alarms me that banks would presume that convenience outweighs security for every customer. What prevents a “vendor” from rigging up a reader located in a backpack that would allow them to roam the streets charging a small transaction to every passing card. Few people would notice such a miniscule charge on their statements, and the “vendor” could potentially obtain a large sum of money over time. In my opinion, companies that are entrusted with our money should be much more responsible when it comes to security. Or at least they should ask their customers first.