Running head: RFID Technology in Banking History
RFID Technology in Banking Sector
1
Research Paper on RFID Technology
2
TABLE OF CONTENTS
ABSTRACT.....................................................................................................................................3
INTRODUCTION...........................................................................................................................4
BASIC COMPONENTS OF RFID.................................................................................................5
ADVANCES IN RFID TECHNOLOGY........................................................................................6
RFID STANDARDS IN BANKING SECTORS............................................................................7
STANDARDS IN RFID..................................................................................................................7
BENEFITS AND DISADVANTAGES IN RFID.........................................................................11
IMPACT OF IMPLICATION.......................................................................................................13
CONCLUSION..............................................................................................................................15
DIAGRAM....................................................................................................................................11
APPENDIX....................................................................................................................................16
Research Paper on RFID Technology
3
ABSTRACT
Banking sector is undergoing a rapid change with the development of technology. One of
the simple and effective technologies used by banks is Radio Frequency Identification (RFID).
Operational efficiency and data security can be improved in banking by using RFID technology.
In RFID tags, radio signals are used to read or detect the data. In banking sector, RFID tags are
attached to credit cards and in those tags data is stored which IT team to detect the information
about customer uses. There are so many technological advancements in RFID systems. They are
developed in all aspects like economic, social and security. In this paper, I would be discussing
about the advancements, advantages and disadvantages of RFID technology and Standards of
RFID.
Research Paper on RFID Technology
4
INTRODUCTION
In banking sector, banks are looking forward to using new technologies, which are
modern for giving better service to their customers. Banking sector is undergoing a rapid change
with the development of technology. One of the simple and effective technologies used by banks
is Radio Frequency Identification (RFID). Operational efficiency and data security can be
improved in banking by using RFID technology. (O'Connor, M. (2014). )
In pre-ATM days, personal banking has to be done in banks with a banker directly. But
after the credit cards and debit cards were introduced most of the problems in banking sector
were solved. But there was lack of security for the information of customers who uses
credit/debit cards. These problems have been solved after introducing RFID tags in banking
sector. They provide security and they are easy to install on cards, as the RFID tags are so
minute. (O'Connor, M. (2014). )
Security and privacy are the most important factors that can be improved by introducing
RFID tags in banking sector. Nowadays banks are starting to implement RFID in their day-today activities that need human monitoring in terms of accounting. Here, issues like keeping track
of the client’s assets, managing credit card security, and to keep the tools and inventory up to
date. By using RFID tags or chips in banking sector human errors will be reduced. (O'Connor,
M. (2014). )
Basic Components of RFID System
In RFID tags, radio signals are used to read or detect the data. In banking sector, RFID
tags are attached to credit cards and in those tags data is stored which IT team to detect the
information about customer uses. Of the many major parts of the system the tag acts as a
Research Paper on RFID Technology
5
transmitter, the reader; acting as a receptor and the database keeps track of the movements of
both the transmitter and receiver.
Tag:
Just like a key to a lock, a tag is the part of the RFID system that communicated with
the reader and thereby with the database. This technique uses radio waves and is categorized
into active, passive and semi-active tags. Presence of a battery to accommodate the power
used by these tags determines its category. Here we use semi active tags. Semi passive or
active tags are the tags that have power supply, which is only used to power the internal
circuitry.
Reader:
RFID readers basically read the data form tags. Readers of RFID read the data from
tags and send the data to backend system. These readers are classified into two categories.
One being only read i.e. can only read the information on the tags and read/write, which can
both, read and write information to the tags. Read-only readers can only read the tag’s data.
Read/write tags are used to read data in tags and write the data in tags.
Backend System:
Backend systems receive data from the reader that read from RFID tags.
Advances in RFID Technology
There are so many technological advancements in RFID systems. They are developed in
all aspects like economic, social and security. Some of the top emerging factors of technology in
RFID systems is discussed below.
Research Paper on RFID Technology
•
6
Technological Advancements:
There are so many advantages by technological advancements in any system.
In the same way, there are some advantages due to technology advancements in RFID
technology. More complicated and exciting applications can be used easily. These
advancements offer more functionality to RFID systems.
•
Tags which are new and improved:
Developments in RFID tags are evolving continuously and it is an ongoing
process. Alternative tag designs, tag packaging and sensory tags are the new tags
developed in RFID systems. In recent days, research is going on to develop chip less
RFID tags, which promises upon improving physical limitations. Tag packaging
improves the creativity and ingenuity of RFID systems.
RFID Standards in Banking Sector
Introducing RFID technology has reduced human effort in banking sectors. Radio waves
are used as mode of communication in RFID tags. So, banks should follow some standards to
keep the information of customers and bank safe. There is a chance of leakage of all the protocol
rules of banks to public. There are three standardizing layers in RFID. Data link, Physical and
Application layers are those three. These standards will make sure that all the information is
shared accurately.
ISO and EPC are the organizations that maintain the standards concerning the RFID
technology developments. EPC was approved in both class-1 and class-2 in 2006 (Huang, 2009).
Proximity cards are an area, which is useful for the banking sector. Here, credit cards, debit cards
Research Paper on RFID Technology
7
and all forms of payment can be upgraded to use this technology. This is similar to NFC in
iPhones and Microsoft Lumia phones.
Standards in RFID
In modern days technology has been growing very rapidly and simultaneously the
problems. The main problem that is the security issue. How much ever, the IT is striving to
develop tools which are used to secure and protect data there are some people breaking the code
already. Most of the nations like USA, depends on Banking Sectors which is clearly depicting
that Banking sectors are more prone to risk. RFID is the most efficient technology which works
with Radio Frequency. (Mital, 2003)Banks now are choosing RFID tags to secure the data and
have a track of their IT assets and all the credit cards. They started using the proximity cards
which also known as proxy cards with low frequency 125 kHz. It has credentials that feature an
embedded metallic antenna coil that stores cardholder data. Data stored on a proximity card, key
fob or tag can be detected by a reader when the proximity card is passed within range. (Garfinkel
& Rosenberg, 2006) In ISO/IEC 14443 credit cards have standards which are classified into 4:
•
Part1 [ISO/IEC 14443-1:2000(E)],
•
Part2 [ISO/IEC 14443-2:2001(E)], (Mital, T., (n.d.))
•
Part3 [ISO/IEC 14443-3:2001(E)],
•
Part4 [ISO/IEC 14443-4:2001(E)]. (Garfinkel & Rosenberg, 2006) (A summary of RFID
standards)
There are three layers included in the RFID namely The Data Link Layer where it is used
to keep a track of the tags where protocols exist, checks the content of the data and initialize the
content data. There is also some deals with the tags but reads the communications related to the
Research Paper on RFID Technology
8
RFID. There are no major International standards in RFID but they are broken into different
fields and then the Standards are made. It will be beneficial if the whole RFID has some
International Standards. But RFID in this sector this is based on the ISO, IPC, ETSI, and FCC.
(Mital, 2003)
Standards of ISO For Proximity Cards: Cards:
ISO/IEC 14443 Proximity
In this section, the range is the primary part. In this the card will be maximum with
efficient frequency even works in few inches. We use such cards for the money transactions
might be credit or debit. This card is highly secured by the pass codes, signatures or security
codes. For such cases, the security usage will be limited. (Mital, 2003)
ISO 15693 Smart Cards:
ISO/IEC 15693 systems operate at the 13.56 MHz frequency, and offer maximum read
distance of 1–1.5 meters. As the vicinity cards have to operate at a greater distance, the
necessary magnetic field is less (0.15 to 5 A/m) than that for a proximity card (1.5 to 7.5 A/m).
This can also have used by the credit or debit cards which are about 28 inches of antenna. (Mital,
2003)
ISO/IEC 14443 Proximity Cards.
In proximity cards these have a range of about 13.56 MHz which is almost close the reader
antenna.
As already discussed it is of 4 parts
Research Paper on RFID Technology
•
9
Part1[ISO/IEC 14443-1:2000(E)]
In this section, the size of the particular will be defined based on the standards. The card must
have threshold limit without causing any permanent damage. The stress for the card might be any
intentional or unintentional works where environment or any physical stress damages the card.
The temperate ≤ 50 degrees. (Richardson) (A summary of RFID standards)
•
Part 2[ISO/IEC 14443-2:2001(E)]:
In this section, it is all about the signals and radio frequencies. The data with the combination of
the signaling is defined.
In this the directional rate is almost 106KBits/s where the
communication is half duplex. In this there is no battery required but it works under the radio
frequency. In this the data is transmitted by the card.
•
Part3 [ISO/IEC 14443-3:2001(E)]:
In this there are two parts subs divided in this like Past A and Part B. In this it helps to
non-collisions of the frequencies. It has a multiprotocol reader. This completes the transactions
and has some polling commands and waits for the major responses. (Richardson)
•
Part4 [ISO/IEC 14443-4:2001(E)]:
This is the major protocol where there is a high-level of data transmission. This is mainly
adopted by the banking sectors as this is the convention are decretory in ISO. This is the highly
used even where a new threat has been discovered through Spoofing Identity which occurs when
an attacker successfully poses as an authorized user of a system. Listed below are spoofing
threats. A competitor or thief performs an unauthorized inventory of a store by scanning RFID
EPC tags with an unauthorized reader to determine the types and quantities of items. An
Research Paper on RFID Technology
10
unauthorized reader can query the tag for the EPC number because most tags used in the supply
chain respond to any reader. The EPC number is only a number. However, because of the
standard way of creating an EPC number, an attacker can determine the manufacturer and
possibly the product number. It is likely that the number assigned to all manufacturers will
become public knowledge as well as the product number after some short period of time. By
incorporation of [ISO/IEC 14443-4:2001(E)] standards their threats can be reversed. (Garfinkel
& Rosenberg, 2006) (A summary of RFID standards)
TAGS
NO TAGS
TAGS
TAGS
RFID COLLISION STANDARDS
NO COLLISIONS
COLLISIONS
IDENTIFIED
Research Paper on RFID Technology
11
Benefits and Disadvantages of RFID
•
Enhanced customer service, Courier tracking, maintain payment programs, and solutions
to human effort for inventory maintenance in the banks.
•
Along with the advantages, there are few concerns in RFID technology.
•
Like any other technology, RFID has its disadvantages. Few problems with RFID
standards can cause loss to banking organizations.
•
Electromagnetic systems can disrupt radio waves and as RFID id working in close
proximity to EM waves, it will be important to install hardware to overcome this
problem.
•
Signals can cause collision in reader data when they overlap with each other. Then the
tags are unable to respond to the queries sent by the users.
•
RFID tag can’t be removed easily. This may cause inconvenience to the users, as they are
very small to remove. (Problems With RFID. (2012). )
•
Using high gain antennas may be a solution that can be provided easily but will be a new
prick for the customers.
•
Like a social security number having our details, a serial number should be associated
with the tag and having the specific information.
•
Buy authentication using mobile devices, the transaction should be completed (Huang,
2009).
RFID technology adoption in banking and Credit cards. The chip in the credit card acts as
a tag and is activated in the vicinity of a reader. This is a more robust and safer way to make
financial transactions. In typical credit cards, the probability of theft of information is more.
Research Paper on RFID Technology
12
To mitigate this Europe pay, Master card and Visa implemented a chip technology. The latest
technology is similar to apple pay but using a traditional credit card.
In this technology, banks are using new and modern technologies for providing the better
service to the customers. With the development of these technologies in banking sector,
Commercial banking is undergoing rapid change. Radio Frequency Identification (RFID) is
one of the simple techniques used in banks. RFID improves both operational efficiency and
data security. Using RFID reduces waiting time of the customers and this is the primary
reason banks are adopting RFID technology.
The RFID tags used in credit are chip contained. Chip tags contain an integrated circuit
chip which is minute in size. Despite of the current cost of RFID tags, many banking
organizations have begun implementing this technology. Security and privacy are the major
aspects that revolve around the RFID tags. The personal and banking data can be processed
of person who uses the RFID tagged credit or debit cards. The tags on the cards would enable
information to be recorded about each transaction of the person.
Impact of Implementation
Most important application of RFID technology in banking industry is in the field of
cheques issuing in between each bank. When a bank issues a cheque for a customer and referring
the customer to the destination banks, there, a high level of care is needed for checking the
signature and code number of order cheque. This process is one of the most difficult processes in
banking sector. After checking the order cheque, bank official should check with the source bank
to check the accuracy of the amount on cheque and code number. After that the cheque is
confirmed and money is issued to customer. All of it is a time-consuming process. But if RFID
tags are placed on cheques then there is no need of cross checking with the source banks. If the
RFID tag is placed in front of a reader system, the entire customer’s information will be visible
Research Paper on RFID Technology
13
and it enhances easy work and safety work in banks. By placing RFID tags on cheques ensures
safety of the cheque to large extent and there will separate code on each cheque. Each tag on
cheque contains information about the total money; check issuer and dates related to that
particular cheque.
In the same way as cheques, RFID tags should be installed on banking documents also.
Information on the document like date of issuance, code or serial number, information of the
owner etc., can be entered instantaneously by reading the RFID tag on the documents. This
ensures the accuracy of the document and probability of cheating will be decreased to a large
extent. Operational speed of banking increases if RFID tags are used on the documents of banks.
Facilities to the customers can be improved by using RFID technology. Tracking and tracing of
the missed information can be done when RFID technology is used in the banking sector. This
feature is helpful not only for customers but also for banks itself. Missed documents can cause
severe losses to the banks. If RFID tags are installed on banking documents they can found
easily and the information on those documents has already been saved in computer systems.
All these developments are modern and can be done by using latest technical equipment
and systems. All the bank employees should be trained how to use these systems related to RFID
technology. All the systems in banking sector should be replaced by new systems, which can
read RFID tags. New door systems where they can read customers credit or debit card details and
pass that information to the available customer take care personnel. RFID readers should be
installed along with the computers in banks so that they can read the tags on cheques or
documents provided by customer. Special training programs should be conducted for the
employees to learn the usage of new technical systems.
Research Paper on RFID Technology
14
Conclusion
In this paper, RFID technology standards explaining its importance have been discussed.
RFID technology solves most of the problems in banking sector regarding security issues. But
every technology has some loop holes so as in RFID technology. Research has been going on
and new advancements are evolving in RFID technology.
Research Paper on RFID Technology
15
Appendix
Sl.
Project part name
Start date
Due date
1
Project scope
July 10th 2016
August, 6th 2016
2
Analyzing the customer integration rate
July, 17th 2016
August, 12th 2016
3
Testing the systems capabilities
July, 26th 2016
August, 18th 2016
4
Improving the existing platform to meet July, 26th 2016
August, 24th 2016
no
the current requirements
5
Classifying the various banks
July, 15th 2016
August, 30th 2016
6
Managing the new environment
July, 17th 2016
Sept, 14th 2016
7
Social acceptance drive
July, 20th 2016
Sept, 21th 2016
8
Analyzing feedback from the pilot July, 26th 2016
Sept, 28th 2016
customers
July, 28th 2016
9
Modifications to the project
10
Employing maintenance staff for all the July, 30th 2016
Sept, 30th 2016
Oct, 6th 2016
banks
11
Allocating datacenters for the databases July, 16th 2016
Oct, 16th 2016
newly built with card data
12
Frequent checks
July, 16th 2016
Oct, 26th 2016
13
Mass implementation
July, 16th 2016
Oct, 30th 2016
Research Paper on RFID Technology
16
References
Huang, C. (2009). An Overview of RFID Technology, Application, and Security/Privacy Threats
And Solutions. Retrieved August 12, 2016, from
http://cryptography.gmu.edu/~jkaps/download.php?docid=1287
Requirements of ISO/IEC 14443 Type B Proximity Contactless Identification Cards. (2012).
Retrieved August 12, 2016, from
http://www.atmel.com/images/doc2056.pdf
O'Connor, M. (2014). Financial Consortium Publishes RFID Standards for IT Assets. Retrieved
August 12, 2016, from
http://www.rfidjournal.com/articles/view?4520
Problems With RFID. (2012). Retrieved August 12, 2016, from
http://www.technovelgy.com/ct/Technology-Article.asp?ArtNum=20
Advantages and Disadvantages of RFID Technology. (2009). Retrieved August 12, 2016, from
http://www.buzzle.com/articles/advantages-and-disadvantages-of-rfid-technology.html
. Garfinkel, S. and Rosenberg, B., Eds., RFID: Applications, Security, and Privacy, Upper
Saddle River, New Jersey: Addison-Wesley, 2006. Retrieved August 12, 2016
Mital, T., “The emergence of RFID,” M.S. project, BAUER College of Business, University of
Houston, Houston, Texas, 2003. Retrieved August 12, 2016
Research Paper on RFID Technology
17
Available: http://www.uhisrc.com/ FTB/RFID/RFID%20Sep03.pdf
Richardson-Electronics, “RFID”. Available: http://www.ferret.com.au/Showcases/RichardsonElectronics/114211. Retrieved August 12, 2016
“A summary of RFID standards,” RFID Journal. Available: http://www.rfidjournal.com.
Retrieved August 12, 2016
Purchase answer to see full
attachment