The highy trusted security chip created by Infineon, was hacked by Dr. Tarnovsky. This chip is to provide security encryption from pay TV services, medical ID systems and even Microsoft's X-Box.

China even adopted the Infineon Security chip for its new electronic passports (article link) as noted on a German article last November. However China is not alone, India also went the same route for their electronic passports (article link) as noted from a press release last March..

This chip is also used in financial card applications, including credit and debit card programs in France, Germany, the UK and China.

So what does this mean?

Since this chips security has now been bypassed and it's "How to's" have been made public, there are many potential risks until the upgrade is released by Invineon, however it is not known how much it would cost to replace the millions of chips currently out on the market. As a consumer, you will NEVER know if an upgrade chip has been utilized(again when they are available) or if your data is still potentially at risk or worse, already taken. This presents a NEW danger in personal Identity, which should be protected.

While Dr. Tarnovsky says he had to go through many chips and many hours on an electron microscope at $350/hour, he also made public exactly how it was done. He was quoted as saying "But the reason it took so long was not so much what the vendors have done, but me learning how to do it," he said. "Once you know what to do, it's not incredibly hard."