As current security methods become easier to crack and subvert, developers search for different and better ways of authentication. We all use magnetic-stripe cards every day to get money from the bank, to shop, to fill the gas tank and to enter the office building. It's not uncommon for a person to carry ten or more different cards at any given time. You make a department store purchase with a credit card and later throw the receipt in the trash. In any of the above scenarios, it is only a matter of time before your identity and potentially your bank account is compromised.
Authentication using magnetic-stripe tokens is plainly insecure.
Being the only person who knows a secret word or pass phrase gives us a misplaced sense of security about data access. Most hackers obtain initial access into a system through accounts with no password at all or a password set to match the user name. You can strengthen current security mechanisms, but the ultimate solution may be an entirely new design. Smart card technology has been reliably demonstrated in Europe for many years. A smart card is a special-purpose storage device about the size and thickness of a credit card, containing a thin microprocessor capable of storing data.