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Chris S. Vargas

Open or Closed, NFC Prospects Abound

Written by Chris S. Vargas
7/22/2011 41 comments
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Near Field Communication (NFC) in the mobile market is a topic that may or may not be getting the consideration that it should. Certainly, there are potential uses for it, both good and bad.

There are two categories in which NFC is utilized: open and secure. As the names imply, one version of the technology allows for the use of NFC in a secure manner, such as in Google Wallet or as a replacement for the Oyster Card, which is used for travel and sightseeing in the London area.

The other NFC category, open NFC, will be used more commonly for sharing of personal data, revealing product information or discounts, location check-in, or gameplay between multiple devices that are in close proximity to each other.

So how will all this help the mobile user in the future? Overall, that question is simple to answer: NFC tags can be promoted at any location, including a phone retail point, a coffee shop, or even at the local supermarket, with immediate and measurable results for businesses that perform data mining.

The more devices that have the NFC technology embedded into them, the easier it will be for marketers to provide targeted advertisements to the smartphone shoppers and to facilitate truly accurate location-based services. Instead of GPS location or inaudible signals being used for check-in services, companies like Shopkick, FourSquare, or CheckPoints will be able to more distinctly target users within locations.

NFC technology could also be used, to help in the ordering process, by companies like Peapod that deliver groceries directly to customers' homes. Signage could be posted at train stops, along walkways, or other highly frequented locations. These companies could have product listings available to be scanned, and then description and ordering quantities could be input on a mobile device by the shopper, thus creating a shopping list. Customers could place their orders with a time for delivery and never have to take the extra time out of their days to purchase food.

Marketers will be able to use NFC technology to bring a new level of interactivity to the shopping experience. The technology can provide stock quantities to shoppers and inform them if the size, color, or style that they are wanting to purchase is located in the store or at another location nearby.

One key point is that NFC tag-reading requires very little existing infrastructure. The biggest aspect of the future success of NFC will be the manufacture of NFC-capable devices out in the market and recognition from businesses of the benefit. Various devices can be built and enabled with NFC technology, such as wireless speakers or headphones. Such a scenario would allow for a simple tap from an NFC music player to transfer the music from the headphones to the speakers. You can imagine the wide variety of consumer electronics and devices that could be developed along these lines.

How will you consider using NFC in the future? Will you incorporate item-specific sales with quantity and location information? Will you use it to promote targeted sales to tech-savvy mobile users? Or will you mass-deploy NFC tags throughout store locations to determine visitor check-ins?

There are lots of choices -- and, hopefully, there's a lot to look forward to.

— Chris S. Vargas is a director at an independent consulting firm located in the Midwest that focuses on marketing, IT, and management initiatives for companies.

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Mike Acker
Rank: Cyborg
Sunday July 31, 2011 8:35:34 AM
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="" Privacy for a bunch of nobodies???"

can you spell CLASS ACTION ?

a suit must be brought under the authority of a Public Law -- I'm very interested in that topic

Why the US needs a data privacy law—and why it might finally get one By Justin Brookman |REFERENCE: Published by ARS/Technica, July 18, 2011 8:37 AM

I would like to see the fundamentals of HIPAA extended to Personal Informatiuon  ("PII") generally

aum007
Thinkernetter
Sunday July 31, 2011 2:36:57 AM
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Chris,

I welcome your thoughts and inputs on this critical issue.

However from all my experience in Business so far,most Businesses look to cut corners and go for the fastest and cheapest implementation of any technology available,

This is what will go through a Senior Execs head,

" Privacy for a bunch of nobodies???

Who cares!!!

Lets go for the cheaper and faster solution-Open NFC,every single time.

"

Regards

Ashish.

cvargas
Thinkernetter
Sunday July 31, 2011 12:14:05 AM

@aum007

While you bring up the aspect about privacy, and it is a very good point to discuss as you have seen through out this article and comments,  there are a couple of things to remember.

First off, from a development standpoint the use of Open NFC should not be used for anything that you would not normally look online for through a web browser.  The use of the application should/counld be store specific allowing users the ability to search inventory that is already in that store's database.  This would be no different than if they were to use QR Codes to perform the same funtions for store visitors.

Secondly, the applications being used in an Open NFC environment should not have access to private information.  So should the application require such information the users should be made specifically aware.

Secure NFC which is the use of an encrypted version of the NFC technology is the only type of application that should have any access (limited at that) to any sort of personal information.  This information should be encrypted at the device level as well as all communications that the application would require.  @Mike Acker has done an outstanding job in helping reference this topic throughout.

As far as store check-in type applications, the users are already aware of GPS tracking that identifies them as being located at a specific location already.  This type of use would simply allow for more accurate tracking through applications like FourSquare that must attempt to pinpoint store visitors as it stands.

So as privacy should always be a goal sought by everyone as much as they can, it is to the extent that users allow their information to be accessed that needs to be focused on.  This typically should be done through training and education.

aum007
Thinkernetter
Saturday July 30, 2011 1:43:13 PM
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Mike,

I read(& am aware) of how easy (& cheap)it is to obtain the kind of personal data you want .

When you keep your PCs on 24/7 and always online you have to be prepared to deal with such situations.Today Botnets are actively scouting PCs which are online for any(& every vulnerability ) they can find as a way to build and strengthen their botnet.You have to be prepared to take it down one Master Server at a time.

But problem is you did'nt suggest a solution to the problem here.

Or did I miss it?

Regards

Ashish.

aum007
Thinkernetter
Saturday July 30, 2011 1:38:08 PM
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Chris,

Your  last question raised here

"How will you consider using NFC in the future? Will you incorporate item-specific sales with quantity and location information? Will you use it to promote targeted sales to tech-savvy mobile users? Or will you mass-deploy NFC tags throughout store locations to determine visitor check-ins?"

absolutely frightened me as I thought about the level and extent of privacy invasions that will take place with mass deployment of NFC.

Not exactly my cup of tea(if you ask me).

Do you (as someone who believes very strongly in privacy) want to deal with such an issue?

I know I don't.So Mass deployment of NFCs is obviously out of the question.Inspite of the fact that this is actually an advertisers/sellers dream.

Such detailed information on prospective clientele(as well as such reach).

Pretty sure I know who will be going Ga-Ga the most.

Regards

Ashish.

Mike Acker
Rank: Cyborg
Saturday July 30, 2011 7:25:54 AM
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i think the main reason is: we have simply "ported" paper base procedures into an electronic network environment

what used to be good enough is now unacceptable:

  • Visa/MasterCard -- they used to run the paper receipts thru the bank just like paper checks. Hackers had to settle for dumpster-diving the discarded carbons
  • computers -- we used to have WordPerfect and Lotus. Hackers had to settle for boot sector pranks on floppy disks but stolen data wasn't going much of anyplace except down the hall on sneakernet

Contrast that with today's "Wired" environment

You can buy "dumps" (stolen credit cards) so much per M.*  You can rent a bot net, or have them set you up: $7/M. Sophos reports receiving 60/000 new malware items/day.

Both the P/C and the Internet were developed for purposes other than that for which they are now used. As a result there are serious deficiencies  and these just happen to be in security

Keeping up with the Hackers Chart on C/Net

everyone was in such a rush to get online they forgot their boots.  and guess what: it's nasty out there.

~~

* Suggested Reading:_KINGPIN_ Kevin Poulsen and _GEEKONOMICS: The Cost of Insecure Software_ David Rice

These "dumps" are stolen from merchant computer systems after or during transaction processing.  Which is why the Hackers are "ROF,LTAO" when people talk about "two factor id" as the "solution".  It will be of NO EFFECT: It's solves the WRONG PROBLEM

aum007
Thinkernetter
Saturday July 30, 2011 7:09:17 AM
no ratings

Mike,

When it comes to an issue as critical as this(failure to authenticate);do you think its because of a culture of complacency that has seeped into the System(oh I could never be attacked/hacked);or because Security never has enough Cash ;or because of something else which I missed[Like a  Culture clash between

Security and Rest of IT or a Culture clash between IT and Business]???

Thanks for your input!!!

Regards

Ashish.

Mike Acker
Rank: Cyborg
Thursday July 28, 2011 9:50:23 AM

what is scary is that failure to authenticate is such a systemic problem

worse, we have fools out there who think they can sweep their problems under the rug and make them go away by suppressing communication

the internet changed that

or more accurately, the internet finished that change: the change began with the 300 baud dial up modem and the BBS / FidoNet stuff

Suggested reading: Black Hat / Defcon

You always have some fool who thinks "I'll just suppress this information and then fix it later if i get around to it and have $$ for it in my budget

Suppress info? good luck, buddy

cvargas
Thinkernetter
Thursday July 28, 2011 9:36:19 AM
no ratings

@Mike

Now that is just plain scary.  You park your car and then come back to where it was and all of a sudden it is gone.  Not very good planning on the car manufacturers part for sure.

Mike Acker
Rank: Cyborg
Thursday July 28, 2011 8:29:39 AM
no ratings

War Texting (Network World Today)

Software that lets drivers unlock car doors and even start their vehicles using a mobile phone could let car thieves do the very same things, according to computer security researchers at iSec Partners.

Don Bailey and fellow iSec researcher Mathew Solnik say they've figured out the protocols that some of these software makers use to remote control the cars, and they've produced a video showing how they can unlock a car and turn the engine on via a laptop. According to Bailey, it took them about two hours to figure out how to intercept wireless messages between the car and the network and then recreate them from his laptop.

Again: the only reason this kind of crap is possible is because the designers failed to include digitial signatures for authentication of the vehicle commands, or (b) the software was vulnerable to unauthorized modification (i.e. their software was hackable)

“hackable” – again is a failure to authenticate, – not the commands – but the over the air software update

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