One must assume every element is a possible target. Just as banks have panic buttons for the tellers and perimeter security alarms, so should systems which use smart card technology. Methods to detect, measure and isolate fraudulent activity are vital to the security management. Credit Card systems tolerate a certain amount of fraudulent activity, but is is measurable and considered part of doing business. If it grew too large, then the card associations would implement appropriate countermeasures.
Countermeasures are the third step in the design.
Once the level of fraudulent activity justifies a response, then appropriate measures are taken. This is where the detection and isolation are important. It allows security managers to implement appropriate responses. For instances, it may be less expensive to have local law enforcement investigate than to upgrade system software or hardware. An important benefit of Smart Card technology is that they are a renewable security element.