Retailers, manufacturers, hospitals, government agencies and other organizations planning to use Radio Frequency Identification (RFID) technology to improve their operations should also systematically evaluate the possible security and privacy risks and use best practices to mitigate them, according to a report by the U.S. National Institute of Standards and Technology (NIST).

“RFID tags, commonly referred to as smart tags, have the ability to improve logistics, profoundly change cost structures for business, and improve the current levels of safety and authenticity of the international pharmaceutical supply chain and many other industries,” said U.S. Under Secretary of Commerce for Technology Robert C. Cresanti.  “This important report lays the foundation for addressing potential RFID security risks so that a thoughtful enterprise can launch a smart tag program with confidence.”

RFID devices send and/or receive radio signals to transmit identifying information such as product model or serial numbers.  They come in a wide variety of types and can be as small as a grain of rice or printed on paper.  Unlike bar coding systems, some RFID devices can communicate without requiring a line of sight, and over longer distances, for faster batch processing of inventory.  They can be outfitted with sensors to collect data on temperature changes, sudden shocks, humidity or other factors affecting products.

However, as RFID devices are deployed in more sophisticated applications from matching hospital patients with laboratory test results to tracking systems for dangerous materials, concerns have been raised about protecting such systems against eavesdropping and unauthorized uses.

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