Schneier on Smartcards and Holding Secrets

[Toto]

David Honig wrote:
> 
> 
> Bruce wrote a short letter to a trade mag (Internet world? I've
> lost it since) worth reporting.  The jist was, if a smartcard
> contains Bank Secrets but is held by customers which do not
> share the same goals/responsibility as the owner of the secrets, this is
> *poor security design*.

LEA's in Montreal (?) just raided a place churning out a wide variety
of Lucky Green Freelance Socialist Smartcards (TM).
It seems that the Electronic Horatio Algers involved simply bought the
same type of equipment that banks,etc., use, and placed hidden cameras
in business areas where charge/debit cards were used.
The LEAs spoke about millions of dollars worth of fraud, but I don't
think they were including possible losses by secret government agencies
skimming private funds for black-bag jobs and illegal arms deals.

  The 'criminals' will probably turn out to be ex-employees of the
Oliver North Campaign Fund Drive.

Toto