Iran issues petrol-rationing smart cards

Iran is launching a system of smart cards for purchasing gasoline, in a move which analysts say could pave the way for possible fuel rationing in 2007, reports IOL

"The distribution of smart cards has started in order to check the consumption of motorists," Mohammad Reza Nematzadehh, a deputy oil minister, was quoted as saying by state-run newspaper Iran.

He did not explain how the smart card would be used to curb consumption but such a method has been mooted in the past as part of a possible plan to ration fuel. The newspaper said motorists would use the cards from March 2007.

The Smart Card Alliance has fired a salvo at US researchers who questioned the security of the radio frequency identification technology used in contactless payment systems.

Last month, researchers demonstrated to the New York Times how RFID-enabled credit card readers leaked sensitive cardholder data during lab tests of 20 such smart cards.

In a statement on the group's Web site and in published interviews, members of the New Jersey-based Smart Card Alliance are firing back, saying that the tests were conducted solely in laboratory conditions and that the researchers did not try to interact with payment networks.

NXP Semiconductors has introduced MIFARE DESFire8, the company's latest contactless smart card IC that combines advanced security features with fast transaction speed and greater flexibility.

NXP said this addition to its MIFARE smart card platform is the first contactless IC in the market to support the advanced encryption standard and common cryptography methods such as DES and 3DES.

The device features advanced cryptographic engines for data transmissions, NXP said, providing service providers increased security against fraud and counterfeit tickets. End-users can also feel reassured that their privacy is well protected. Additionally, with this new IC, consumers will only need one smart card to access multiple applications.