In September 2008, the National Institute of Standards and Technology (NIST) published a Guide to Bluetooth Security as a reference for organizations. It describes Bluetooth security capabilities and how to secure Bluetooth technologies effectively. While Bluetooth has its benefits, it is susceptible to denial-of-service attacks, eavesdropping, man-in-the-middle attacks, message modification, and resource misappropriation. Users and organizations must evaluate their acceptable level of risk and incorporate security into the lifecycle of Bluetooth devices. To help mitigate risks, included in the NIST document are security checklists with guidelines and recommendations for creating and maintaining secure Bluetooth piconets, headsets, and smart card readers.[129]
While I think the future is in NFC and some kind of associated service for mobile payments, you can use several other clients that put a bar code on your mobile phone display that is then scanned by a reader at the store. I use this functionality every other day or so at Starbucks in Seattle with various Starbucks card apps on Android and Windows Phone.
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NFC is compatible with the existing infrastructure spawned for Radio Frequency Identification (RFID) technology such as passive RFID tags and contactless ISO 14443 compatible readers. In order to engage in an NFC interaction, a user needs to touch her smartphone alternatively to an NFC tag, another smartphone, or an NFC reader. The smartphone communicates with each mentioned device in a different fashion. When touched to an NFC tag, the smartphone reads/writes data from/to the tag. When touched to another smartphone, they exchange data. When touched to an NFC reader, the reader reads the data stored in the Secure Element (SE) of the smartphone. An operating mode name is given to each interaction: reader/writer mode to the tag interaction, peer-to-peer mode to the smartphone interaction, and card emulation mode to the reader interaction.
Three types of NFC devices are involved in NFC communication: smartphones, NFC tags, and NFC readers. The possible interaction styles among NFC devices provide three different operating modes as shown in Figure 1: reader/writer, peer-to-peer, and card emulation operating modes where communication occurs between a smartphone on one side, and an NFC tag, another smartphone, or an NFC reader on the other side, respectively [8,18].
Authentication protocols are one of the most studied issues in NFC communication security. One study has developed a Needham-Schroeder-based secure mutual authentication protocol which aims to guarantee authentication and confidentiality between SE and NFC readers in card emulation mode [238]. The protocol enables devices to share a session key, which will be used for secure transactions thereafter. It uses a trusted entity termed as Authentication Server, which verifies reliability of entities, authentication of SE to NFC reader, and authentication of NFC reader to SE. Another mutual authentication protocol for reader/writer mode communication is proposed in [239]. The protocol uses ECC, and provides mutual authentication and a secure environment for demanding transactions. An additional mutual authentication protocol that is designed for mobile payment is also presented [240], which deals with card cloning, skimming, downgrading terminal and relay attacks. The protocol mutually authenticates the customer, smartphone, NFC reader, and bank before the transaction; and uses one time password (OTP) to generate session keys for encryption purposes. The study also analyses the protocol using Casper security analysis software. Some authors [236] propose a high-speed processing of authentication and key agreement for NFC payment, and also present a method to perform secure communication. In a further study, two authentication protocols that also ensure mutual authentication between two devices are proposed [241]. 2ff7e9595c
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