Apple to Buy Mobile Security Company AuthenTec for $356 Million

[cvaldes]

so what if i'm on the phone with a person/business and the wife comes over and says "hey, i need to pick up xyz at the store, i need the iphone since it has our payment info on it".

so stupid.

keep the credit cards.

Uh, no.

And NFC-enable smartphone would not replace your wallet, as you will still deal with merchants and organizations that don't offer NFC payments.

What this does is reduce the number of cards you have in your wallet (particularly things like loyalty cards), reduces the number of times you need to pull out your wallet to dig around for those cards, and speeds up transactions.

Example: let's both buy a Caltrain ticket at the Mountain View train station to Millbrae, then switch to BART.

You: stand in line (likely behind 2-4 other people). You select the destination, type of tickets (adult, one-way), number of tickets, then payment type. Cash? Start insert bills, but be prepared to have the ticket vending machine spit back a couple, especially if the bills you are used aren't crisp. Wait about ten seconds for ticket, receipt and change. Credit? Swipe card. Maybe several times, the card reader is finicky. Wait for authorization, ticket, and receipt. Likely you have spent two minutes on your transaction and you waited behind several people who had similar transactions unless they're newbies, at which point you are likely to see some 5-7 minute transactions as people fumbled through the menu options and instructions. When we get to Millbrae, walk to the BART platform and repeat. Take your paper ticket and insert into BART fare gate.

Me: wave wallet over Clipper Card reader. Confirmation in two seconds. At Millbrae Caltrain, wave wall over Clipper Card reader to indicate that's where my Caltrain travel terminated. Walk to BART fare gate, wave wallet over Clipper Card reader. Fare gate opens in about a second.

Your transaction times: maybe 3-5 minutes.
My transaction times: maybe 5 seconds.

That's actually what drove widespread adoption of the "osaifu keitai" (literally "wallet phone") in Japan in 2005. You could use it as a transit pass.

I'd love to have NFC-enabled payments on a smartphone, and I could remove the Clipper Card from my wallet.

Again, we need to remind dim-witted people that NFC-enabled payment systems do not replace wallets. They streamline transactions, provides a reviewable record of transactions online, and reduces the number of cards one needs to carry.

NFC payments don't help at the little mom-and-pop ramen shop or taqueria. Heck, the best dive bars in SF are cash only. Even a credit card will not be accepted as payment.

No one is forcing you to use an NFC-enabled smartphone as your sole payment instrument.

Perhaps some day, you will get a chance to visit a place that actually has a wide range of merchants and services that provide payment options in a multitude of ways. Luckily, both Caltrain and BART still let Luddites pay with cash.

 

[Mad-B-One]

Passwords are the work of the devil. Horrible, the worst part of the computer experience for me. Went to order some iTunes, the first time in awhile. What a terrible experience. Are they afraid terrorists are going to steal country music? WTF, awful experience.

Hopefully, this technology ends this forever and some nervous person at Apple doesn't decide to combine passwords and fingerprints. I swear I will go to Windows if they do away with passwords and Apple doesn't.

Well, you can configure Windows to automatically log on up until Windows 7. Sometimes you haved to use TweakUI, but that's free anyways. In Windows 8, I didn't find this option, yet. I totally agree - passwords are made by the devil. At work, I have to change my PW every 30 days and it cannot be one of the 24(!) last used ones. The result is that you can bet that 95% ot the people have a password ending in a double digit (01-24). How unpredictable.

 

[chrisbru]

Apple is NOT replacing credit cards.....EVER.

If i'm at home and I want the lady to run to the store and pick up something, I'll give her my debit card and tell her my passcode so she can purchase it. If all my cards are replaced by my phone, i'm not going to want to hand her my phone to go make a purchase when my phone contains EVERYTHING about me on it.

See - you're not looking at the bigger picture. You won't have to hand her your phone... You'll just tap her name in your contact list, type in the amount of $$ to transfer to her device, authenticate, and then she can go on her merry way and use her device to pay for the items with your money.

This obviously isn't the only implementation, but we all know Apple is good at innovating new approaches to situations that none of us have even considered.

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Well, whoever said the phone would be your only means of payment? Of course, you'd have a backup card too. I can just imagine the alternative... "gee, I'd like to pay for this, but my phone just ran out of power!"

Honestly, I don't see the point of all this. You either slide a card through a slot or you wave you phone over it. Being that you can't have your drivers license, this isn't going to allow you to leave you wallet at home. You'll need it for the DL... so stick your CC in there too.

I like the card better as I prefer to give the teller my card and show her my driver's license so that there's some proof to who I am. I also write, SHOW ID on the back of my card instead of signing my name so the clerk will ask to see my DL. To me, that's secure.

To me, the waving of some device seems insecure and can be taken advantage of. I'll never do it.

I think in order for a full mobile phone wallet, there will have to be a way to do a digital driver's license/official identification alternative. I don't know what that is, but i'm sure someone can figure it out.

RE: Your "SHOW ID" failproof - how often do stores actually ask to see your ID? I have that one on of my cards, and I'd say I get asked maybe once a month. A significant number of stores have machines where you are the only one to touch your card, and several more have cashiers who don't care enough to check the back of the card anyway.

 

[sbrhwkp3]

you wouldn't know what to do with her even if she did.

Choke myself? Paint her? Paint her and choke myself?

 

[sinsin07]

To me, the waving of some device seems insecure and can be taken advantage of. I'll never do it.

At one time in history people thought the same thing about banks, ATMs and debit cards. There are still a lot of people who refuse to either withdraw or make a deposit in a ATM.

Doesn't mean technology advancement is going to wait for your "sensibilities".

"What, deposit my money instead of keeping it under my mattress?"

 

[JAT]

what's my internet forum handle have to do with anything? LOL. OH, you must think you're the first person to ever try and be clever with that...how cute...

what if my wife doesn't want an iphone? what if she wants a flip phone? or a phone that doesn't support payment access? not everyone uses and iphone or latest android....

the phone will never, ever replace the plastic credit card. it may server as a substitute, but not replacement. they will always be around.

You really should take all the straw and just burn it. I didn't say that. You did.

And the answer is: your wife can find her own means of payment if she doesn't want to have an NFC phone. And seriously, let her put the shoes on, it's not 1955 anymore.

 

[nagromme]

The real goal is to replace the entire wallet and maybe even my keys. Why replace the credit card when I still have to carry around my driver's license, passport, and other IDs? I'd still have to carry a wallet anyway.This is a longer term goal, but significantly better. Your phone trusting that you are you is the first step.

A slow process, but I agree!

I’d still want to carry ONE thin form of non-powered backup ID, which could be the jumping off point for accessing my bank accounts, services... maybe a locksmith... if my phone were to be lost/destroyed. A driver’s license in a super-thin sleeve with some useful phone numbers written on it and a couple $20s might be sufficient! Really just an emergency measure that it would be OK to skip, in the future I envision.

 

[OrangeSVTguy]

How awesome would a finger print reader/scanner for the home button to scan your finger print to unlock your phone or use it as an authenticater when using your phone basically as your debit/credit card with the NFC chip.

It won't be long before our "smart phones" are controlling everything in our lives. They can already start our cars, change the temperatures in our house as well as change the channels on our TVs. One universal device To carry around that does it all. Maybe one day they will be embedded into our bodies...

 

[cvaldes]

So is Apple just buying up patents here?

Note that Apple has made relatively few acquisitions, so it is unlikely to be a patent grab.

When Apple buys companies, they are buying something with concrete usefulness than can be eventually deployed to a growing customer base. In all cases, it may be engineering prowess and technical talent (people). Apple likely realizes that there will be some attrition and some key people will probably leave, but that the underlying technology is worth having and incorporating in a way that gives them a strategic edge on their competition.

PA Semi and Intrinsity are beefing up their ARM development efforts. The Anobit acquisition will likely contribute to future SoCs.

As we know, Siri has been fairly quickly deployed as a beta service for iPhone 4S, about a year after it was acquired.

We have yet to see the full impact of their Poly9 and C3 mapping acquisitions, but the maps in iOS 6 are probably based on that technology.

Most patents don't see the light of day in a shipping product or service anyhow, so buying an entire company to gain ownership of one or two patents doesn't seem to be a wise way to spend your money. However, if you think that the acquired company's ideas can continue to flourish and develop within your company, generating newer intellectual property that gives you an advantage over the competition, well, maybe it's worth acquiring.

Here's a Reuters article on recent Apple acquisitions and how they are being implemented:

http://www.mercurynews.com/business...nt-acquisitions-focus-unique-features-devices

In some cases, we have already seen how these companies are adding new features to Apple's offerings.

 

[Mr. Retrofire]

hmm...fingerprint security for iPhone? that would be cool.

Fingerprints are everywhere, so the system is not secure. If someone is able to bypass the system (no fingerprint-based system is secure) Apple loses over 300 million US$.

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Would sure beat a pass code for security.

On the contrary.

 

[mdelvecchio]

As it stands NFC payment is stupid. Anyone could steal your phone and buy stuff with it.

hmm really? if only there were a way to require a personal identification number to complete NFC transactions....

 

[Mr. Retrofire]

Just like every sci-fi movie made in the last 30 years where they steal someone's eye, fingers or whatever to get access to the super-high-tech-secure room.

Why should they do that, if the OS (iOS in this case) is vulnerable enough?

 

[ChrisA]

The BEST way to implement fingerprint scanners is to hide them in the woodwork so that are not seen or notices.

For example the front door on your house has a door handle made with fingerprint scanning material and simply does not open unless you are the right person. Same with your car. There would be no scanning step, simply grab and pull.

Same with a computer. keycaps, track pad and mouse are all fingerprint sensors.

OK yes some practical issues come up. But you get the idea, the best way to use these is if you don't see them

 

[ChrisA]

Think how this worked 100 years ago. It was better. I'm not that old but when I was a kid there was a grocery store near my grandmother's house that still worked that way...

You cary you items to the checker and he would know you by first name. He adds up the price and asks if you are going to pay today or if he should add the price to your tab. I would say "put it on the tab" and he's pull out a book, flip to the correct page and enter the amount and date. Every week or so you'd pay off the bill. This worked because the checker knew all the regular customers.

Guess what? The local lumber yard and hardware stores ringht her in Los Angeles still work like this. I have an account at the lumber yard and I bought $11,000 worth the lumber and said "put in on the account" nd they delivered it to the job site. This works because the sales guy knows his regular customers.


So what is needed is a way to allow the checkers and sales people to know you. Today we use a driver's license but that is not as nice as the above examples. I'd prefer a camera in the store jhooked to a data base that would allow the checker to see who you are andwhat you have bough in the past and the see the last few times you were there. Thenthe checker could say "Jim, does this go on yur account? Thanks." just like checkers did 100 years ago.

 

[cvaldes]

The BEST way to implement fingerprint scanners is to hide them in the woodwork so that are not seen or notices.

For example the front door on your house has a door handle made with fingerprint scanning material and simply does not open unless you are the right person. Same with your car. There would be no scanning step, simply grab and pull.

Same with a computer. keycaps, track pad and mouse are all fingerprint sensors.

OK yes some practical issues come up. But you get the idea, the best way to use these is if you don't see them

Actually, the better way would be to conceal the actual, functioning fingerprint reader, but to have a fake one plainly visible as a theft deterrent.

 

[koban4max]

Couldn't Apple just launch their ideas rather than buying off from other companies and claim it's their original idea? lol.

 

[DrMotownMac]

This may sound stupid, but...

In the movies, if someone wants your fingerprint to gain access to your offshore account, to get into a secret lab, or anything valuable like that, they simply cut off your finger and use it as a key. Of course, it's much more graphic when it's an eyeball (like in 'The Avengers' or 'Demolition Man'), but you get the idea.

If they put TOO much into this fingerprint technology, then it could be pretty dangerous. If some thug is going to mug you on the street or carjack you, what's to stop them from taking your index finger in the process? Remember, these are people who'd have no problem shooting your for a wallet or a car. Now, if the finger plus the iPhone gives them access to ALL of your credit cards, your keys, your identification, etc., then it could be kind of scary out there!

On the other hand, maybe I watch too many movies.....

 

[dethmaShine]

So far, even the best finger print scanners on the market can be faked out by a replica finger print molded in gelatin. The absolute best ones require the gelatin to be slightly moist (licked), and warm. Those aren't exactly a high barrier to surpass. Especially since the person trying to get into a phone 'protected' by a fingerprint scanner is very likely to have a copy of the necessary fingerprint, all over the outside of that very same phone.

Biometrics are *passable* for identification, but *lousy* for authentication.

For clarification:
Identification = "This is who I claim to be."
Authentication = "Here's proof I am who I claim to be."

Identification is your user id, authentication is your proof that the user id actually belongs to you.
Biometrics being used for identification are fine. Biometrics being used for authentication are blatant misuses of technology, and provide a permanently broken security model.

Ecactly. But you should understand that normal people not associated with applied security may have a hard time understanding that. Biometrics cannot be used as a replacement or substitute for digital certificates or passwords or authentication to any relevant data. Picking up fingerprints is an easy job. People will learn to do it successfully once the iPhone implements such an unlock feature through biometrics in future iOS versions.

Although biometrics maybe used for other crucial purposes, I don't see it being a usual method of authentication.

 

[Mad-B-One]

In the movies, if someone wants your fingerprint to gain access to your offshore account, to get into a secret lab, or anything valuable like that, they simply cut off your finger and use it as a key. Of course, it's much more graphic when it's an eyeball (like in 'The Avengers' or 'Demolition Man'), but you get the idea.

If they put TOO much into this fingerprint technology, then it could be pretty dangerous. If some thug is going to mug you on the street or carjack you, what's to stop them from taking your index finger in the process? Remember, these are people who'd have no problem shooting your for a wallet or a car. Now, if the finger plus the iPhone gives them access to ALL of your credit cards, your keys, your identification, etc., then it could be kind of scary out there!

On the other hand, maybe I watch too many movies.....

Yes, this indeed sounds stupid because:

AuthenTec's "swipe sensors" is described to use sub-surface technology to read the live layer of skin beneath the skin's surface.

In other words: you cut off the finger and you cannot access at all. Not even the person you just made the 9-finger-guy/gal.

So far, even the best finger print scanners on the market can be faked out by a replica finger print molded in gelatin. The absolute best ones require the gelatin to be slightly moist (licked), and warm. Those aren't exactly a high barrier to surpass. Especially since the person trying to get into a phone 'protected' by a fingerprint scanner is very likely to have a copy of the necessary fingerprint, all over the outside of that very same phone.

Biometrics are *passable* for identification, but *lousy* for authentication.

For clarification:
Identification = "This is who I claim to be."
Authentication = "Here's proof I am who I claim to be."

Identification is your user id, authentication is your proof that the user id actually belongs to you.
Biometrics being used for identification are fine. Biometrics being used for authentication are blatant misuses of technology, and provide a permanently broken security model.

Ecactly. But you should understand that normal people not associated with applied security may have a hard time understanding that. Biometrics cannot be used as a replacement or substitute for digital certificates or passwords or authentication to any relevant data. Picking up fingerprints is an easy job. People will learn to do it successfully once the iPhone implements such an unlock feature through biometrics in future iOS versions.

Although biometrics maybe used for other crucial purposes, I don't see it being a usual method of authentication.

Same for your theories: This scanner does not scan the surface. Your gelatin finger won't open anything. The surface copy with dusting and tape not either.

Well, there is a way to get someone's money though: The good old pistol in the pocket behind him....

 

[beeber]

For Macs too!

About three years ago I bought a Upek Eikon fingerprint reader for my MacBook Pro running Leopard. I loved it so much I bought another one for my Mac Pro. Authen-Tec bought Upek (or at least the Eikon line) and things went down hill from there. They updated the Windows software regulary, but it took them about a year to update the software for Snow Leopard, and about the same time to upgrade it for Lion. And it lost features along the way. I had to unplug the sensor on my Mac Pro, although I still use it on the laptop.

I am glad Apple bought Authen-Tec. There is certainly plenty of applications for the iOS devices but I hope they beef up the OS X side as well. The Eikon sensor works remarkably well and would be a nice built-in feature on Macs.

 

[String]

If it was included in the track pad the the system could periodically check the users identity and lock out a snooper. The same goes for an iPhone screen.

 

[michealwillard]

It would awesome to not have either A: Type in my password anytime I purchase something, log into Find My Friends, etc or B: Go with having to use a passcode each time I unlock my phone.

Having this fingerprint sensor would allow that, hopefully. Awesome technology!

 

[DrMotownMac]

Yes, this indeed sounds stupid because:

In other words: you cut off the finger and you cannot access at all. Not even the person you just made the 9-finger-guy/gal.

Actually, I thought it was stupid for the reason that what happens in movies usually does not represent real life. HOWEVER, your reasoning is actually incorrect. An amputated digit can survive for up to 30 hours if kept cold, 5 hours if still warm, and can successfully be reattached. Even John Wayne Bobbit was able to have his penis reattached after his wife cut it off in a crazy fit of rage. See Medscape's article on Replantation Treatment & Management for confirmation of what I'm saying.

Soooo, maybe not so stupid after all. Just saying....

 

[bommai]

"Hey, kid! Thumb a hundred bucks to save the clock tower?!"

How about my hover board?

 

[Jb07]

I can't wait for Apple to implement this in the iPhone and watch everyone drool over how "innovative" and "revolutionary" it is, even though it was done in the Atrix 1.5 years ago. I'm just kidding, sort of...
I find the fingerprint scanner to be cool, but also a little gimmicky.