That is a question raging among computer security experts and hackers around the world, especially after word went out recently on the Internet that the Mondex computer chip had been hacked. Mondex International Ltd. denies the security of their chip had been compromised. The company's security officials insist the smart cards are a safe and convenient alternative to cash. Unlike bank, credit, and debit cards, Mondex cards are almost like cash because customers load value on to them and this electronic sum can be spent at stores, payphones, and restaurants. Bank verification over phone lines is not needed.
Customers can even exchange E-cash between themselves from one card to another.
This cuts down on infrastructure costs for authorization but means security must be confined to the microchip embedded in the card. An even bigger Mondex trial is set to begin in Manhattan later this month. In Guelph, an older 3101 chip is being used in trials. Mondex officials said the memo is almost 18 months old, and therefore out of date. Ken Warren, a senior Mondex security official in London, England, admits no card is tamper-proof but he disputes his company's chip could be hacked by just anyone today.