This paper discusses the security and privacy aspects of low-cost Radio Frequency Identification (RFID) systems, which are becoming increasingly prevalent in daily life through "smart labels" attached to consumer items. The authors describe the operation of RFID systems, highlighting their advantages over optical barcodes, such as automatic readout, non-conductive material compatibility, and high read rates. They also outline the potential benefits of a pervasive RFID system, including cost savings and improved supply chain management. However, the paper emphasizes the new security and privacy risks that arise with the widespread use of RFID. These risks include corporate espionage, personal data extraction, and location tracking. The authors propose several security mechanisms to address these issues, particularly in the context of low-cost RFID devices, where cryptographic primitives are not feasible due to cost constraints. They suggest that the burden of security must be shared between the tags and the readers, with the latter being less expensive and thus more feasible for widespread deployment. The paper concludes by noting ongoing research at the MIT Auto-ID Center and references relevant literature on smart cards and tamper-resistant hardware, emphasizing the need for future research to balance cost and security in RFID systems.This paper discusses the security and privacy aspects of low-cost Radio Frequency Identification (RFID) systems, which are becoming increasingly prevalent in daily life through "smart labels" attached to consumer items. The authors describe the operation of RFID systems, highlighting their advantages over optical barcodes, such as automatic readout, non-conductive material compatibility, and high read rates. They also outline the potential benefits of a pervasive RFID system, including cost savings and improved supply chain management. However, the paper emphasizes the new security and privacy risks that arise with the widespread use of RFID. These risks include corporate espionage, personal data extraction, and location tracking. The authors propose several security mechanisms to address these issues, particularly in the context of low-cost RFID devices, where cryptographic primitives are not feasible due to cost constraints. They suggest that the burden of security must be shared between the tags and the readers, with the latter being less expensive and thus more feasible for widespread deployment. The paper concludes by noting ongoing research at the MIT Auto-ID Center and references relevant literature on smart cards and tamper-resistant hardware, emphasizing the need for future research to balance cost and security in RFID systems.