RFID is widely used to provide visibility of inventory and assets. It is also providing visibility for thieves, as part of an unattended surveillance system.
The Nox system developed by SimplyRFID of Warrenton, Virginia, integrates RFID with surveillance cameras to create a video record of objects being stolen. Organizations apply RFID tags to assets and files they want to protect. RFID readers automatically detect when the objects are being moved and trigger the video camera to record the activity. The system can automatically send alerts by cell phone or pager if a tagged object is moved.
"Theft is a real problem, even for small companies," SimplyRFID president Carl Brown told RFID Update. "People want to stop and catch theft. They're finding a lot of value in this system for doing that."
Nox systems are often installed in situations where employee theft is suspected. Nox tags can be unobtrusively installed on objects as small as a pen and are often undetectable to the naked eye. Gen2 passive RFID is usually used, but other types of RFID, including long-range technologies, are also available.
Objects movements are recorded, time stamped, and archived, to provide a solid video record of activity. Organizations also use Nox to locate misplaced items by consulting video records to determine the object's last known location.
SimplyRFID originally developed the Nox system for use by the FBI and has since started marketing it commercially. It is targeted to four broad applications:
1. Protection against theft and misrouting. One method of employee theft is to under-pack goods for shipment, then to sneak out the unpacked goods from the shipping department. A tagged item being read at the shipping dock would not necessarily arouse suspicion, since the tagged item would be expected to be included in a shipment. Nox can prevent this type of theft by creating a video record that can be reviewed to ensure items are indeed packed.
2. Contraband tracking. Specialized tags are available for money sleeves and drug containers. The longer-range tags can be read at border crossing stations to detect contraband hidden in vehicles or on people.
3. Evidence room management. RFID tracking and video surveillance creates chain-of-custody documentation while protecting evidence from theft and tampering.
4. File tracking. The system is effective for file tracking and can reduce lost files by providing video records of a file's last known location and the person handling it at the time.
SimplyRFID won't disclose details about its customers, but said they have reported excellent results since implementing the Nox system. "No customer has told us they've had a theft since the Nox system was installed," said Brown.
A Nox system at one company helped catch an employee who was stealing by using the shipping department to send goods to outside addresses, where he would retrieve them later. One such shipment was returned because it had an incorrect shipping address. The company opened the returned package, discovered its stolen goods, then used its Nox records to discover who sent the package.
Companies typically install Nox to monitor their shipping departments and dock doors, according to Brown, who noted the system can also be used to collect data and record shipments. "Organizations can use it to do more than catch crooks," he said. "But, in general they're using it to catch crooks."
Nox

Monday, March 31, 2008
EU Drafting New RFID-Oriented Privacy Protections
The European Union has released an official recommendation for new policies to address privacy threats arising from the use of RFID systems. The RFID Recommendation will be open for public comment through April 25, 2008, and the EU plans to implement its resulting new policy by the summer. The policy is being developed to supplement the existing EU Data Protection Directive to cover circumstances specific to RFID.
"The EU Data Protection Directive has been transposed by all member states into their national legislation. Although this directive is technologically neutral and its principles and provisions are sufficiently general, its practical applicability can be difficult to evaluate in some RFID scenarios," Gérald Santucci, head of the EU's networked enterprise & radio frequency identification unit, told RFID Update in an e-mail. "The Recommendation does not create new rules but rather uses a 'soft law' mechanism to complement the directive with a specific interpretation for RFID applications."
"Soft law" is commonly used in EU communication. Its legal bearing is somewhat unclear and the term's context is similar to "guidelines" or "code of conduct."
The 10-point Recommendation includes numerous recommended actions and best practices for companies implementing RFID systems to consider. It was motivated by the growing use of RFID in European retail, but the EU wants to promote it to other sectors as well. Highlights from the Recommendation include:
1. Privacy assessments should be conducted before RFID applications are implemented.
2. Organizations should designate a person responsible to monitor privacy assessments.
3. Results should be made public.
4. Industry and professional organizations are encouraged to create RFID implementation guidelines and codes of conduct.
5. Signs should be used to make the public aware where RFID is in use.
6. A standard logo should be developed and used to indicate products that include RFID tags.
7. RFID applications should employ "state of the art" security.
8. Retailers should give consumers the option to opt out of RFID systems and should not charge or otherwise penalize consumers to deactivate tags.
9. The EU should provide a follow-up report within three years of the final Recommendation being implemented.
The Recommendation is intended to help -- not inhibit -- European RFID adoption, Santucci explained. "A top priority for Europe is to create trust in RFID technology. Trust is paramount for the social acceptance of RFID. So long as European citizens consider RFID to be more threatening to their privacy than previous innovations which pervaded the personal sphere -- such as mobile phones or surveillance cameras -- Europe's industry will trail behind its competitors because of increasing difficulties to deploy applications."
"The EU Data Protection Directive has been transposed by all member states into their national legislation. Although this directive is technologically neutral and its principles and provisions are sufficiently general, its practical applicability can be difficult to evaluate in some RFID scenarios," Gérald Santucci, head of the EU's networked enterprise & radio frequency identification unit, told RFID Update in an e-mail. "The Recommendation does not create new rules but rather uses a 'soft law' mechanism to complement the directive with a specific interpretation for RFID applications."
"Soft law" is commonly used in EU communication. Its legal bearing is somewhat unclear and the term's context is similar to "guidelines" or "code of conduct."
The 10-point Recommendation includes numerous recommended actions and best practices for companies implementing RFID systems to consider. It was motivated by the growing use of RFID in European retail, but the EU wants to promote it to other sectors as well. Highlights from the Recommendation include:
1. Privacy assessments should be conducted before RFID applications are implemented.
2. Organizations should designate a person responsible to monitor privacy assessments.
3. Results should be made public.
4. Industry and professional organizations are encouraged to create RFID implementation guidelines and codes of conduct.
5. Signs should be used to make the public aware where RFID is in use.
6. A standard logo should be developed and used to indicate products that include RFID tags.
7. RFID applications should employ "state of the art" security.
8. Retailers should give consumers the option to opt out of RFID systems and should not charge or otherwise penalize consumers to deactivate tags.
9. The EU should provide a follow-up report within three years of the final Recommendation being implemented.
The Recommendation is intended to help -- not inhibit -- European RFID adoption, Santucci explained. "A top priority for Europe is to create trust in RFID technology. Trust is paramount for the social acceptance of RFID. So long as European citizens consider RFID to be more threatening to their privacy than previous innovations which pervaded the personal sphere -- such as mobile phones or surveillance cameras -- Europe's industry will trail behind its competitors because of increasing difficulties to deploy applications."
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