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RFID Tags in Euro Banknotes

Posted by michael on Fri May 23, 2003 10:40 AM
from the mugger's-delight dept.
psychictv writes "CNET News.com is reporting that Euro notes could be embedded with RFID tags in the future. 'RFID (radio frequency identification) tags also have the ability of recording information such as details of the transactions the paper note has been involved in...'" The EU has been considering this for a while. You'll never even know they're there.
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  • New mugging tool (Score:5, Insightful)

    by maddogsparky (202296) on Friday May 23 2003, @10:41AM (#6024165)
    Great. Now muggers and pick pockets will be able to use technology to identify prime targets.

    • Re:New mugging tool (Score:5, Interesting)

      by KDan (90353) on Friday May 23 2003, @10:45AM (#6024207) Homepage
      Yeah but a rfid-reader wallet connected to the net could report that you've been mugged immediately and 'deactivate' all those notes, making the mugging pointless (the money stops working in all rfid-aware connected cash registers)...

      Daniel
      • Re:New mugging tool (Score:5, Interesting)

        by Surak (18578) * <surak AT mailblocks DOT com> on Friday May 23 2003, @11:16AM (#6024586) Homepage Journal
        I doubt it. The problem is that -- first off -- cash is a bearer instrument. That means it's legal tender for anybody that possesses it. You don't 'own' any of the cash in your pocket, the government does. So you have no legal right to deactivate the money. Burning cash or defacing it it anyway is a violation of federal law in most countries, including the U.S. (it's called 'destruction of government property').

        Anyway, if that worked, there would be nothing to stop anybody from giving someone 'deactivated' bills especially since not everyone walks around with an RFID reader, nor is it likely that everyone will have one anytime soon. Then you just bought something using money that's basically worthless, at least at places that have RFID readers.

        • Re:New mugging tool (Score:5, Informative)

          by Ozan (176854) on Friday May 23 2003, @11:39AM (#6024795) Homepage
          You don't 'own' any of the cash in your pocket, the government does. So you have no legal right to deactivate the money.

          In the EU you own the money which means it becomes your property.

          Burning cash or defacing it it anyway is a violation of federal law in most countries.

          Not in the EU. You can do whatever you want with it, if it makes you happy. Of course, if you destroy it you might have other problems than with the law.
      • by JonTurner (178845) on Friday May 23 2003, @11:25AM (#6024686) Journal
        "...the net could report that you've been mugged immediately and 'deactivate' all those notes..."
        and no doubt make an appropriate entry into your Total Information Awareness database file.
        Or, to look at it from the other angle, if you are engaged in any "suspicious" behavior, what's to stop the TIA/Dept of Homeland Security system from deactivating your money?

        I don't like this one bit. Nosir.
    • by BrookHarty (9119) on Friday May 23 2003, @10:47AM (#6024241) Homepage Journal
      Hey, same with salesmen! Goto the customers with large amounts of cash first. At casinos, they could tell who the high rollers are.

      Hey, while we are at it, lets put it on scanners at our stores, and we can detect if employees are leaving with more money than they came to work with.

    • Kinda like War-Driving but with a "Step 3: Profit!" Another good reason for me to stick to using my Debit Card for most transactions, but there's DARPA's Total Info Awareness project. I guess if we are made to be too paranoid to carry/use cash then all our non-cash transactions are more easily tied-in to us and trackable.
  • by jonbrewer (11894) * on Friday May 23 2003, @10:42AM (#6024175)
    "RFID (radio frequency identification) tags also have the ability of recording information such as details of the transactions the paper note has been involved in."

    I think you'd be hard pressed to find an RFID tag that could record transaction information inside a bill. You'd need an external device to do the recording.
  • Nice. (Score:3, Funny)

    by grub (11606) <slashdot@grub.net> on Friday May 23 2003, @10:42AM (#6024179) Homepage Journal

    Now people in the EU will know who to sue when they get testicular cancer from all the Euros in their front pockets.
    • Re:Nice. (Score:5, Insightful)

      by RobinH (124750) on Friday May 23 2003, @11:13AM (#6024547) Homepage
      Now people in the EU will know who to sue when they get testicular cancer from all the Euros in their front pockets.

      RFID chips are passive devices that respond when a reader transmits a certain RF code. The RFID chip uses the energy from the "ether" to respond. If anything, an RFID will absorb a small amount of radiation and convert it to heat, not the other way around.

      You'll probably get cancer from having a cell phone strapped to your waist long before you get it from an RFID chip.
        • Re:Nice. (Score:5, Informative)

          by RobinH (124750) on Friday May 23 2003, @12:08PM (#6025083) Homepage
          Speaking of, do you have any good info on how they work? Some tech docs or something?

          Here's a good primer [aimglobal.org], if you can read a PDF.

          In general, go to RFID.org for some good introductory stuff, and they have links to other resources.

          RFID tags are cool, and they're definitely the future, though I understand why some people are worried, and we do have to deal with those issues. We got our dog from the humane society, and she was RFID'd with a chip that they can use to identify her if she ever gets lost. It's implanted under her skin, and it's only about the size of a grain of rice. There's no reason why it couldn't be implanted into human flesh.
  • Robberies (Score:5, Insightful)

    by KDan (90353) on Friday May 23 2003, @10:43AM (#6024180) Homepage
    That would make robberies pretty pointless. If your cash register knows what money is in it, you can press the button to say "it was all stolen" and then no other connected cash register will accept that money anymore unless you get it authenticated by the police or whatever... I can see many massive misuses, but there's also a lot of potential good uses...

    Daniel
  • by aug24 (38229) on Friday May 23 2003, @10:43AM (#6024181) Homepage
    According to this doo-hickey here, you've got money in your shoe too...
  • They'll never notice that you've taken them out.

    Micrrowave your cash today!
  • Great... (Score:5, Funny)

    by Waab (620192) * on Friday May 23 2003, @10:44AM (#6024199) Homepage

    "RFID tags also have the ability of recording information such as details of the transactions the paper note has been involved in.

    Wonderful. Now how am I supposed to buy porn? Can't use credit card, it gets tracked. Can't use cash, it gets tracked. And with the price of porn these days, who's strong enough to haul around that much change?

    • by sczimme (603413) on Friday May 23 2003, @11:12AM (#6024539)

      If you buy that much pr0n, I bet you have at least one arm strong enough to carry the change.

      :-)
    • Re:Great... (Score:5, Insightful)

      by RobinH (124750) on Friday May 23 2003, @11:20AM (#6024640) Homepage
      Wonderful. Now how am I supposed to buy porn? Can't use credit card, it gets tracked. Can't use cash, it gets tracked. And with the price of porn these days, who's strong enough to haul around that much change?

      Why are you buying something that you're ashamed to admit you buy?

      I guess it's just me, but I have no problem going into an Adults Only Video and renting a porn in broad daylight, or buying a porno mag off the magazine rack at my local store. I also have no problem walking into a drug store to buy condoms, pregnancy tests, etc. If the clerk gives me a strange look, I just wink at her.

      Don't get me wrong, I don't parade it around the store for all the little kids to see, but I'm certainly not ashamed to buy it.

      Having travelled various parts of Europe, I also don't think most Europeans would be that worried about being "tracked" buying porn either. They're a lot more open with the idea of sexuality over there.
      • Re:Great... (Score:4, Funny)

        by Tackhead (54550) on Friday May 23 2003, @01:21PM (#6025738)
        > I guess it's just me, but I have no problem going into an Adults Only Video and renting a porn in broad daylight, or buying a porno mag off the magazine rack at my local store.

        I'm missing something here. What's this "store" thing of which you speak, and while I'm at it, why does money have to change hands for something as ubiquitous as pr0n?

        It just sounds like a more time-consuming and expensive way to solve a problem Al Gore solved 20 years ago by taking the initiative in inventing the Internet.

      • Yeah. Great idea. I trade some money with some guy on the street. He goes and buys some crack rock. Later, the dealer is busted. The money on him is analyzed. Next thing I know, the cops are knocking on my door.
  • by rnelsonee (98732) * on Friday May 23 2003, @10:44AM (#6024200)
    Since we all know portable RFID readers will become available commerically, what's to stop a thief from carrying around his reader and then summing up how much people in the street have in their wallets? Just wait around late at night, wait for some woman to walk by with $300, and then just rob her? I'd bet there would be more muggings if the average pay went from $40 to a few hundred...
  • uh, woah? (Score:4, Interesting)

    by spectral (158121) on Friday May 23 2003, @10:44AM (#6024201)
    Damn, I didn't realize they could be that small.. I don't know how durable it would be though? If there was a way to make certain that they were in the notes, I could see it being a nice way to check to see if the notes added up to the value punched in by the cashier: a kind of redundancy. It would take a while til the new notes with these things were in decent enough circulation to make this viable, but would still be interesting. Too many people would start to rely on it though, which might not be a good idea.

    I'm just wondering how easy it would be for something that tiny to get scratched/cut off? I'm not so worried about privacy implications (maybe I'm not paranoid enough), but I'm sure there'll be some posts of that line soon enough.

    No, I haven't read the article. :)
  • One question... (Score:5, Interesting)

    by HomerNet (146137) <homernet&mac,com> on Friday May 23 2003, @10:44AM (#6024204) Homepage
    Why bother? Why not push for full digital convergence and have everyone use EFT for ALL transactions? We're headed that way anyway, I haven't used paper cash in nearly a month now for anything.
    • Strippers, hookers, drug dealers, public utilities, congress persons, ...

      See the connection?
    • Re:One question... (Score:4, Interesting)

      by Dutchmaan (442553) on Friday May 23 2003, @11:17AM (#6024599) Homepage
      Full EFT for all transactions is almost here, but I think people still need a measure of security in being attached to their wealth.

      Control of ones wealth has been moved steadily out of the owners hands for years. Going from the gold standard to paper money was one step. A piece of paper showing your wealth, but in essence just a piece of paper... Now it's just numbers on a screen.. full EFT essentially cuts you off from financial anonymity.

      I like EFT, but there should always be alternatives for those who are concerned with privacy issues.
  • by Red Rocket (473003) on Friday May 23 2003, @10:44AM (#6024206)
    "Well, I see you picked up this 5 Euro note as change for your purchase of Zovirax on May 12th at the BogoPharm pharmacy on the South Side. You know, you really should be more careful about who you sleep with, Mrs. Zambezi."
      • Log whos using the ATM that spits it out, follow all registered exchanges. Of course, Evading it is as easy as trading your 'club card' around. (those bulk food stores where you can use a card to get a discount on some items)
  • Cool. (Score:4, Funny)

    by mikeophile (647318) on Friday May 23 2003, @10:47AM (#6024249)
    Now I can launder my money in the microwave oven.
  • by Bonker (243350) on Friday May 23 2003, @10:47AM (#6024251)
    European Drug Distributor: Hello, Mister Colombian Drug Lord. Here is the money, I promised you.

    Drug Lord: Hola, my French friend. I assume you've prepared the money as I specified?

    Distributor: Indeed! Not only are these new notes, freshly received through my cover business, but they have been washed in muddy water, microwaved, and then dried in my daughter's basement.

    Drug Lord: Ecellent! Here is the ten kilos of my finest cocaine. Good day to you!

    Yeah, a real drug transaction isn't going to go nearly like this, but having the money check what kind of transactions its going through isn't going to work if there is *any* kind of money laundering going on and if *any* kind of competant disabling of RFID tags takes place.
  • Privacy (Score:4, Insightful)

    by Mattygfunk1 (596840) on Friday May 23 2003, @10:48AM (#6024257) Homepage
    It would, therefore, also prevent money-laundering, make it possible to track illegal transactions and even prevent kidnappers demanding unmarked bills

    Um, excuse me. What about the privacy factor in all this?

    If the government / police are able to track illegal transactions then what is stopping them looking at my normal transactions? I don't want just anybody having access to the information about where I buy everything from my lunch to my porn.

    This is cash we are talking about and they wanna watch it. Pfft.

    Cheap web hosting [cheap-web-...ing.com.au]

    • Re:Privacy (Score:4, Interesting)

      by Neophytus (642863) on Friday May 23 2003, @11:07AM (#6024472)
      How can a chip identifying a piece of paper identify you? It would not be reprogrammed to track you personally, just the movement of the paper you hold. Unless you carried ID that reprogrammed it every time (defeating the point in paper money and coins) then there is no practical way that you could be tracked as the person buying porn. Heck, it would be astounding if they were able to track what the notes were actually used for, just where and when. The cops could always check security tapes because of the time ID, but porn isn't illegal so they would have no reason to waste the time.

      Data can only be written on the chip's ROM during production, and not after it is out "in the wild," according to Hitachi. - No personal tracking.
    • Re:Privacy (Score:4, Insightful)

      by heby (256691) on Friday May 23 2003, @11:45AM (#6024863) Homepage
      what's your point? these are nothing but unique ids on your cash; and they've been there for a long time - unique serial numbers. for all i know, us$ bills have them as well (can't check since my us cash is at home and i'm at work), canada certainly has them. the only difference is that rfid tags will be somewhat easier to read for a machine (note that it's not impossible with the serial numbers, though, banks routinely record them already).

      while i agree that tracking of cash might become more widespread, it's not really a new thing.
      • Re:Privacy (Score:5, Informative)

        by Colm Buckley (589428) <colm@tuatha.org> on Friday May 23 2003, @12:00PM (#6025017) Homepage

        As a point of information, the laws of the European Union and its constituent states are in general vastly more protective of individual privacy than those of the United States and its constituent states.

        The EU's privacy laws were considered so restrictive to trade by the United States that they actually came up at the World Trade Organisation talks. The outcome was the "Safe Haven" registration system for US companies wishing to store data on EU citizens.

        There are some exceptions (notably the United Kingdom), but in general one's privacy is more protected considerably more by EU law than by US law.

        Neither protection excuses you from the necessity to provide your own privacy, should you desire it, of course.

  • Just curious. THeoretically, of course.

    This wont fly. If they dont have an anonomous way of spening the countries cash, they will use something else. Expect a huge groundswell of foregin cash and gold to get started. It is noones busisness what i spend my money on.
  • by Catbeller (118204) on Friday May 23 2003, @10:54AM (#6024327) Homepage
    There is no valid reason for tagging the money, since anyone who wants a transaction trail could use an e-cash card.

    The Powers are going to eliminate the cash economy. Period. Nothing and no one escapes the net.

    We are entering a prison like no other in history, for it will be the entire world.
  • by adzoox (615327) * on Friday May 23 2003, @10:56AM (#6024345) Journal
    After reading this story about Philips making RFIDs "capable of being shut off" [zdnet.co.uk] I did some research on how this was done. Apparently the RFID is sent a magnetic signal. I found out, that it appears if RFIDS are subjected to very strong magnetic forces it disables them ANYWAY.

    So, my question is, if RFIDs are to be embedded in money, will it still be accepted if the RFID is off or not working. Will you have to take it to a bank (hassle) and get the whole note replaced or REactivated?

    I would think people that work in highly magnetic work conditions or that are subject to mild radiation (cell phone users, utility workers, possily computer users) might face this problem.

  • by jcknox (456591) on Friday May 23 2003, @10:58AM (#6024370)
    Remember back in 1999 when people were talking about how the Y2K bug would result in society reverting to bartering & precious metals currency?

    I wonder if eliminating cash as a nontraceable currency will prompt the emergence of additional non-fiat currency preferred by the privacy-conscious.

    I can hear it now: "That non-DRM PC will cost you $3000 credit, $2900 cash, $600 in gold, or 10 cartons of banned cigarettes."
  • Black Market (Score:5, Interesting)

    by Schezar (249629) on Friday May 23 2003, @11:01AM (#6024405) Homepage Journal
    This is a good thing... for the US!

    Before the Euro, the international black market dealt mostly in American currency. Part of the reason for that is the fact that it behooves the US economy's controllers to have large amounts of it's currency base outside of the country. (Think about it. Print more money, buy 'things' with it, make sure monies paid leave country. Monies are not local to the economy, so inflation does not increase. Oversimplified, yes, but I'm making a general point here.)

    The Euro was a threat to that black market monopoly. A strong Euro would be serious competition, and would likely drive at least some of the US's expatriated currency back within its own borders, wreaking havoc with the economy.

    With the advent of tracking capabilities in the currency itself, the Euro is keeping itself out of the black market, which is good for the United States.

    Europe had a chance to take a bite out of US hegemony. So much for that ^_^
    • As I mention above, the biggest threat to the US economy is the oil nations selling in Euros more than the dollar (as Saddam started too), if the UK joins the Euro and Brent crude starts being produced in a Euro nation, then this will only push them further into using Euro also, just now the US has a license to print money for the world, that could stop. The Euro is also on the border of many many eastern nations where the black markets are rampent and arab nations. But its what oil is paid for with that
  • Not Cash Any More (Score:5, Insightful)

    by Euphonious Coward (189818) on Friday May 23 2003, @11:16AM (#6024578)
    Once the Euro gets tags that record transactions, the Euro will cease to have the attributes we associate with cash. After that, they're more akin to "negotiable paper".

    That would make US dollars a lot more popular in some important quarters, which the EU doesn't want. Therefore, I predict that the Euro will get these embedded tags only after the U.S. starts seeding them into its own currency. The desire to create a "cashless society" here, and eliminate untraceable commerce, has a long and sordid history.

    The problem with embedding these things is that they're easily fused, so banks would also need to start refusing fused notes, and people would have to start carrying detectors because they might otherwise end up with undepositable paper. The alternative is that fused notes are still negotiable, but then they would all get fused in short order.

  • Anti-forgery? (Score:5, Insightful)

    by Elwood P Dowd (16933) <judgmentalist@gmail.com> on Friday May 23 2003, @11:19AM (#6024627) Journal
    Encrypt the bill's serial number with the treasury dept's private key?

    Seems like that'd be pretty effective...

    Of course, they can't possibly make this a *required* feature of all bills. You have to be able to microwave the money and still use it, otherwise y'all Europeans will start screaming bloody murder.

    The privacy invasion happens when you aren't paying attention: When you don't realize that your subway card placed you at the scene of the crime, or whatever. As they gain more and more surveillance techniques, eventually it'll be impossible to pay attention to all of them.
  • by sacrilicious (316896) on Friday May 23 2003, @03:14PM (#6026796) Homepage
    When money becomes trackable, perhaps even beyond the ability of a microwaving to fix, I will make it a regular habit to ask friends and acquaintences if they'd like to enter into an ongoing money swap arrangement. People engaged in this practice will make it a habit to carry, say, $200 in cash, and will make it a point to swap bills every so often. As long as this is an ongoing practice, it's not even necessary to efficiently randomize who has what bills; all you need to do when questioned by Homeland Security about hookers/dope/etc is profess to be a money swapper, and offer to call numerous witnesses to that fact; ergo, anyone could have been the person who plunked down bills that the atm originally dispensed to you. And the social practice of swapping bills will serve to draw like-minded people together.
          • What part of "Euro Banknotes" didn't you understand? This has nothing to do with the land of the (supposedly) free, but with the union where we have mandatory ID cards, strict weapon laws and people who see black boxes in cars as a /good/ thing and don't distrust the government like the mostly paranoid americans.

            All my Euros already have a serial on them, so if somebody wants to trace them from the ATM to the grocery, they could already do so. This paranoid mentality, which seems to be really popular around Slashdot is really bewildering to me.