@ John Widger and James Woods
@ John Widger:
'I can only wonder why they don't want a secure system. Apart from the obvious, 'We don't want to fix it because it will cost money and we have share holders to worry out.'
To answer your question, this isn't just a small thing. I think I read somewhere on The Register that Philips Semiconductor (now NXP) have issued over 10 billion (10,000,000,000) of these Mifare Classic (hackable) items worldwide.
To make it really clear: in the US, if you make a defective product (such as a car component), by law you're supposed to notify each purchaser about the defect. Here's the rub: 10,000,000,000 x (letter explaining defect + current stamp cost). Plus time and manpower to print and send it all. And that's not including replacing the product itself. Now you see why they're fighting tooth and nail. Granted that most companies would buy in bulk, it would still probably bankrupt them to replace the defective units (for free), so they're trying to keep a high, er low, profile and coast along until they can fix it in-house and sell the updated versions to their unsuspecting customers in order to stay afloat.
In their minds, why should they fix it if they lose their jobs in the process? So, they screw people.
@ James Woods:
"The last time I checked, I wasn't in china, and merely talking about something can't put you in jail."
Not true. Yelling "FIRE!" in a theater can get you arrested, and if you were to give a full-scope presentation of how to make home-grown explosives or bio-chem weapons on a street corner, you'd probably be arrested there too. And God forbid anyone should talk about doing nasty things to a politician or the President in public these days. Over-reacting is the watchword of the times. It's not Orwell yet, but give it time.