Future Forecast
A Cashless Society?


INLS 187: Information Security
Allyson Silver
Assignment 3
March 19, 2003

Introduction of Topic and its Importance

 As the technology age is steady inventing new and faster ways for us to do everything under the sun, many big cities throughout the world are looking for new and easier ways for customers to spend their money.  We all thought at some point that Automatic Teller Machines, Check and Debit Cards, and Online Shopping were exactly what we had been waiting for as consumers.  I mean, what could be easier than swiping a card that is automatically connected to your checking account? Or driving to any ATM in the nation and receiving money from YOUR banking system, even on Sundays!  I must admit that as I was becoming a teenager these forms of shopping were becoming very popular, and this is how I was raised. I cannot imagine living without a check card, ATM's, or sites like Half.com or Ebay.

Well there is something newer than all of this, and its right under our noses.  Many international cities are moving towards the ideas of "Cashless Societies".  And this is a phenomena that may effect us all, especially when it comes to securing our identity and financial transactions.
 

The vision of a 'classless society' is a utopian ideal that has long been confined to the realms of fantasy. However, the same can definitely not be said of a 'cashless society' which is set to become a reality in the short term thanks to the new era of information age technology.
(Ennis Moves Toward a Cashless Society)

Background

 As the world is rapidly moving towards a "cashless society" it is interesting to discover that many countries have been aiming for this all along.  We as consumers never once thought that the days of counting dollars and coins were coming to an end, but sadly this has been the plan for quite sometime.  The sales clerk is being removed from the picture and shopping has become quite the impersonal transaction of clicking, swiping, and confirming.  Never once do we have to speak to the cashier.  However, with every swipe and every confirmation our shopping habits, locations, and schedules are being logged somewhere.  Someone knows every single thing we have purchased for the past 5 years, in some cases this does not matter - who really cares.  But in the long run, where does it end, and how can we escape it? Granted, the only people who really care about who watches where they shop and what they buy have something to hide, however those of us everyday citizens run the risk of getting caught in identity theft and credit card fraud as everything about us is tracked and can be accessed via our financial transactions.  The only way to anonymously purchase anything is to use cash, and this is exactly what financial institution are trying to get get rid of.
 
Current State of Topic

 Currently, in the United States online shopping and ATM machines are about as cashless as mainstream society has gotten.  However, in countries like Japan, the "smart card" and the "Edy" are slowly taking over every aspect of financial freedom. With these cards, a person's financial information is stored and can be used anywhere: subways, train stations, restaurants, malls, anywhere.  And you do not swipe these cards or even need a cashier to verify that you are who your card says you are.  Actually, for the Edy, all you have to do is hold the card up to a sensor, and it will scan and read your information.  With the "smart card", in train stations, you do not even have to take the card out of your pocket, as the smart card readers can read a card that is 4 feet away.
Japanese Smart Card
Mixed Reviews of Cashless Society


Future Forecast

 In the future, I predict that these new cards will not prove to be too popular.  As there are many concerns and drawback to suck an increase in technology.  First of all, consumers have absolutely no privacy and no guarantee as to what how and why they are being  financially tracked.  Meaning that more junk mail and junk email will be loading up their boxes and wasting their time.  I also believe that such a technological move will increase the risk of identity theft and fraud, what happens if you lose your card or someone steals it.  There is no clear way as to how one is protected from this situation.  Additionally, I believe that with all of the terrorist threats and risks, along with our own glitches and defects in technology, we are placing everything we financially have on a computer system that we cannot guarantee is stable.  I am sure that many people will agree and believe that this is just another way to help the banks get richer.  I feel that there are just too many risks and unanswered questions to say that these "smart cards" will catch on here in the United States.  My prediction for the future is that they will not succeed, at least not with me...I don't mind counting my pennies....