Created in the 1970s, smart cards are, by definition, any pocket-sized card with embedded integrated circuits that can process information and allow the owner to purchase goods, services, and any other operation requiring data stored on a chip. For example, credit cards have built in microprocessors and memory that allow them to identify and finance transactions, therefore making them smart cards.
A smart card has ICC applications that allow it to receive input and deliver output. Typically, a smart card is made of plastic, contain a security system, and is transfers data through a card reading device (such as ATMs). Smart cards are beneficial because they provide means of conducting business securely without the necessity for human interaction.
Security Features
Smart cards do have privacy and protection applications, such as tamper resistance, cryptographic algorithms, and electric current. Tamper resistance means that the item is opposed to being altered by another outside force. A cryptographic algorithm is an unchanging set of rules or steps for enciphering and deciphering messages in a cipher system.(stated by answers.com) The last application, electric current, is part of the process where the information about the inner working of the algorithm can be found if the its operations are measured precisely.
Pros and Cons
Though they have their advantages, smart cards tend to have their disadvantages as well. Because of their plastic covering, smart cards chips are more vulnerable to flexibility; as such, the larger the chip, the more likely it is to break. Also, all smart card data is stored in the EEPROM (Electrically Erasable Programmable Read-Only Memory) system where it can erase or changed by an unusual voltage supply. Luckily, this is less likely because it’s difficult to find a right level of sensitivity. The security lock can be removed by heating the controller to a high temperature or focusing a light on the EEPROM.
Credit card theft is the illegal taking of another person’s personal financial information without the person’s knowledge or consent. Credit card fraud is theft by deception. Depending how you look at it, credit cards hold our entire lives in their small data chips - without even realizing it we could lose all that hard work in the money we invested over the years. The question really is should we trust these little cards with our information that can eventually lead us to bankruptcy?Are these “smart cards” really a "smart" option? The answer lies within the card.
