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More on the coming boom in smart cards

eWeek came to the same conclusion I did -- Microsoft will drive a boom in smart cards-based two-factor authentication.  But they went on to highlight a key challenge to any two-factor scheme -- provisioning the second factor

Meanwhile, Robert Mitchell reminds us of the dangers of card insecurity.   And Patricia Reaney of Computerworld gave a pessimistic view of future identity theft dangers, which is supported by a sobering report on the ongoing battle with credit card fraudsters.  

All of those warnings can be construed to support the case for two-factor authentication.  Keeping various numbers and passwords secret simply doesn't suffice; you need a physical security object as well.  Given that people have been carrying analogous things around for centuries -- they're called "keys" -- I expect this transition to eventually succeed.