"Hear and Know" -- Scott Silverman and VeriChip -- (RFID) Security Under The Skin
Thursday, June 01, 2006 - AIM Global

Scott_Silvermansm.jpg
 

AIM Authority PodCasts

By John C. Havens

Features Editor

 

“Hear and Know” -- The Audio Version of RFID Connections’ “Taglines”

 

RFID Connections interviewed Scott Silverman, Chairman of the Board and CEO for Applied Digital, to learn about their VeriChip and the security issues surrounding this revolutionary technology.

 

Scott’s views can be heard by clicking on the “podcast” in the article.   So if you don’t have time to read Scott’s entire interview now, download it onto your iPod/MP3 player and listen in on your way home. 

 

Note: Written transcript has been edited from audio interview for grammar and syntax.

 

RFID Connections: What’s the maximum read range of the VeriChip?

 

Scott Silverman: The VeriChip is a tiny little passive RFID device that gets injected into the arm of a human being.  The device itself is about eleven millimeters by one millimeter.  We always compare it to the size of a grain of rice.  And the read range is actually determined by the size of the antennae that is placed into the scanner that awakens the passive chip and, in essence, reads a sixteen-digit identification number. In the primary application for VeriChip, which is the VeriMed application for medical records, the read range is rather short because the handheld scanner is small.  It’s about six to twelve inches.

 

Where is the best location for the chip in a person?

 

Our physicians have chosen the upper right arm near the tricep as the standard location for the VeriChip for two primary reasons.  Number one, you need a standard location and the right arm is obviously ease of access.  It’s not hard to get to it, people know where it is and you simply wave the scanner over the upper right arm near the tricep area. And the second reason is obviously bio-compatibility.  In that area there is a good amount of fatty tissue, and there is no flexibility.  On our chip there is a proprietary product called “Biobond” which is an anti-migratory product so that the chip doesn’t migrate within the body.  So they’ve chosen that area for those two reasons, which is ease of access and the bio-compatibility aspect.

 

How do you respond to the security concerns that have been voiced about the VeriChip being easily read and copied?

 

The entire RFID industry faces the security and the privacy issues associated with it.  Our chip and the VeriMed System were specifically designed to enhance security and enhance privacy and protect the person’s medical records and personal information.  Let me explain what I mean by that.  

 

The chip itself only has a sixteen-digit identification number.  So even if you as a non-emergency room personnel get your hands on one of our scanners, all you’re going to receive when you scan the arm is a sixteen-digit identification number which means nothing to you unless you are able to tie that to the VeriMed database where the pertinent personal and medical information is stored.  The access to that database is limited by you, the VeriMed subscriber who can say what type of affiliates, such as Emergency Rooms, that you want to have access to the information.  And, obviously, a valid, registered emergency room is in the system and is allowed to have access to the information if you want them to. If you are a criminal or someone that wants to try and gain someone’s personal information for the wrong reasons, you’re not going to be able to do that because you’re not going to have proper security codes that the hospital would have, and be able to access the information. So all that you’re going to be able to retrieve is the sixteen-digit identifier.

 

So it sounds like it’s pretty much impossible to hack into the system.

 

There are really three parts to the system: the chip itself, the scanner, and the database.  You need to know the person has the chip, you need to have access to a scanner, and then once you read the sixteen digits you need to have access to the database.  So I believe your last question relates to the ability to access the database information, and obviously we think our database is very strong and has the proper firewalls and security around it.  But as with any database, on the Internet or otherwise, we all know there are certain security flaws that could potentially exist in the database.  But that database access is relevant for the entire technology industry and not just the VeriMed application. 

 

So then with all these different applications such as medical records, credit card numbers and access control, would people have to have multiple chips?

 

No, one chip does it all.  Obviously the main application is the medical. It can also be used for security, and in a few instances in Europe right now it’s actually used for financial transactions and financial applications.  But what’s key here is that the main element of “privacy or security” is really control.  And our system was built, our chip was built (the hardware, the scanner, and the database) for you, the VeriChip subscriber.  You’re the person with the VeriChip and you have control over the database and control over who gets access to that database. 

 

So, when you look at the normal areas of privacy concerns, such as credit cards for example—one could make an argument that because of the way our system is set up, that our system is more secure than your credit card or even your access card into your building or apartment because it’s in your arm, it’s with you all the time, it’s tamper proof, it’s secure, and no one can take that number and use it to their advantage unless you want them to.  While with your credit card, for example, I could take a credit card out of your wallet, walk into a Wal-Mart, spend a hundred dollars and nine times out of ten I’m going to get away with it. 

 

So then with this one chip, would that lead to the development of a “super database” that would be the primary target for hackers?

 

I think it depends on what you want the database to be.  Today, in 2006, the primary reason for the database is clearly the medical records and the medical applications.  If you decide to use it in lieu of your smartcard to get into your building, again, that’s a decision that you make as the person that has the VeriChip to use it for a security application.  If, down the road, it turns into a financial transactional source, and you make the decision to use it for that, whether it be a credit card or an ATM (or obviously in lieu of those things) then you make that decision.  So I don’t necessarily think that the database that is being created from the VeriMed system today and what may come down the road is any different than any other database out there.  In fact, because of the tamper proof and secure hardware, I think the database is probably better protected than most databases out there in today’s society.

 

I know you were on Fox News recently talking about the VeriChip.  What was that experience like and what feedback have you gotten from your appearance?

 

Over the last couple of years the VeriChip technology has sparked a lot of interest, both good and bad, for the company.  And there have been a lot of media interviews.  And most recently I was on Fox and Friends and I’m a football fan, so I enjoyed sitting there with Tiki Barber. 

 

But being able to communicate a new application, potentially, for the VeriChip technology as it relates to the Guest Worker Program and the new immigration bill that came out of the Senate yesterday, I think it’s a relevant technology that can be used amongst other technologies to properly ensure that guest workers coming in and out of this country are properly registered, and that the enforcement that’s necessary to make the law work and the Guest Worker Program work can also take place at the employer level.  So whether it’s biometrics, whether it’s a smart card of sorts, a tamper-proof visa or a VeriChip related to those things, I think the VeriChip is a very logical technology to use for that and the experience on Fox and Friends is just one of many I’ve had with the media and I’m sure will continue to do so because the VeriChip is an interesting technology and an interesting topic to discuss and even debate. 

 

 

About Scott Silverman:

 

Mr. Silverman, age 41, serves as the Applied Digital’s Chairman of the Board and Chief Executive Officer. From September 1999 to March 2002, Mr. Silverman operated his own private investment-banking firm in addition to serving Applied Digital in various capacities.  From July 1995 to September 1996, he served as President of ATI Communications, Inc., an Applied Digital subsidiary. He began his career as an attorney specializing in commercial litigation and communications law at the law firm of Cooper Perskie in Atlantic City, New Jersey, and Philadelphia, Pennsylvania. Mr. Silverman is a graduate of the University of Pennsylvania and Villanova University School of Law.

 

About Applied Digital

 

Applied Digital develops innovative identification and security products for consumer, commercial, and government sectors worldwide. The Company's unique and often proprietary products provide identification and security systems for people, animals, the food supply, government/military arena, 
and commercial assets. Included in this diversified product line are RFID applications, end-to-end food safety systems, GPS/Satellite communications, and telecomm and security infrastructure, positioning Applied Digital as a leader in identification and security technology.

 

 



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