EXHIBIT 2004
`EXHIBIT 2004
`
`Dynamics Inc. - Ex. 2004
`Page 1
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`4/13/2020
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`Explaining the Physics Behind Magstripes/ Experimental Conclusions | Lasers, Technology, and Teleportation with Prof. Magnes
`
`Lasers, Technology, and Teleportation with Prof.
`Magnes
`
`Explaining the Physics Behind Magstripes/
`Experimental Conclusions
`
`History of Magnetic Card Stripes
`
`The technology of “magstripes” has been around for a very long time, but there have been several important
`advances in the magnetic card reading technologies over the past few decades. The rst ocial documented
`use of magstripes on cards is from the London Transit Authority who, in the early 1960s, installed magstripes
`on cards for the London Underground. In the late 1960s the USA was using magnetic stripes in cards for the
`Bay Area Rapid Transit. These “smart cards” were rst patented in France in 1974. However, one of the most
`important dates for magstripes was 1970, where the standards were established for credit cards (which were
`rst issued in 1951) and magnetic stripes became used. In 2011, nancial and transit cards constitute the
`largest group of cards with magstripes, and they all follow the ISO standards to “ensure read reliability world
`wide.”  Another more modern type of swipe card is the “smart card.”  These are more secure than magstripe
`cards; they have a chip on the card that prevents the information from being damaged or stolen. These cards
`can have greater capacity than magstripe cards and have have broader information carrying capacities, that
`can be added or deleted, as well as being able to accomplish some more complicated tasks such as data
`encryption. Future uses of the magstripe could broaden into ocial documents such as passports, and one-
`swipe cards (a magnetic stripe card that has multiple purposes) are starting to become used more and more on
`college campuses throughout the country.
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`Explaining the Physics Behind Magstripes/ Experimental Conclusions | Lasers, Technology, and Teleportation with Prof. Magnes
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`Magnetic Stripe Reader - credit to product image on DIY Trading
`
`http://img.diytrade.com/cdimg/99700/1133925/0/1200014156/Portable_Mag
`
`netic_Stripe_Data_Collector.jpg
`
`Modern Uses of Magstripes:
`
`Magstripes are used in a lot of dierent markets in modern day living. Some of these markets include Financial
`Services, Travel and Transportation, Health Insurance, and Education. Within these specic markets there are a
`vast variety of dierent types of magstripe cards. These include access cards (let you into buildings), bank cards
`(transaction processing), phone card (prepaid PIN cards), Credit or Debit Cards (revolving accounts that include
`a purchase transaction), and health cards (store personal medical history). At Vassar, every student has a
`“VCard” which is a one-swipe magnetic stripe card. That means that this one card can be used to access
`dierent information and perform many tasks such as buying food at dierent venues, gaining access to
`buildings, and has actual money stores on it. These types of cards are becoming more and more popular across
`college campuses worldwide.
`
`What Exactly is A Magnetic Stripe?
`
`Magstripes - Credit to Plastic Card
`Printing Canada LLC - on Wordpr
`Magstripes - Credit to Plastic Card Printing
`
`If you look at your student ID, ATM car, or subway ticket etc.
`you would notice a narrow black or brown stripe on the back of
`it. Essentially, this stripe is a very thin layer of magnetized
`material that has information stored on it. Magnetic material
`(also known as ferromagnetic material) is a material that retains
`properties of a magnet even after an external magnetic eld is removed (all N-S poles are aligned in the same
`direction).
`
`Canada LLC - on Wordpr
`
`You must be wondering, what is this magnetic stripe made of, and how did it get there?
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`Explaining the Physics Behind Magstripes/ Experimental Conclusions | Lasers, Technology, and Teleportation with Prof. Magnes
`4/13/2020
`Well, a type of metal (usually iron oxide or barium ferrite) is ground up into a ne powder. Then, it is combined
`with a plastic-type of material in a liquid consistency. Then, the solution hardens and is either laminated or
`stamped onto a card.
`
`Dierent types of magnetic materials used on cards have dierent coercivity. Coercivity is the measure of the
`resistance of a magnetic material to becoming unmagnetized. Typically, there is low coercivity and high
`coercivity. It follows that high coercivity material is more dicult to encode information on. Therefore high
`coercivity magnetic stripes contain information that is more dicult to erase, and they have a practical use for
`cards that need a long life. Hence, low coercivity magnetic stripes are easier to encode information on, and
`easier to erase information on. High coercivity magnetic stripes are usually black and made of barium ferrite.
`Low coercivity magnetic stripes are usually made of iron oxide.
`
`How exactly is information “encoded” onto a stripe of metallic material?
`
`Solely having a stripe of metallic and “magnetic” material on the back of a card does not mean that the card is
`able to have useful information stored on it. The stripe has to go through a process of magnetization rst.
`
`Essentially the stripe acts as a bar magnet. One end is a north pole, and the other end is the south pole.
`Though, as noted before, the stripe is made up very small magnetic particles (20 millionths of an inch). So, on a
`small scale, each particle acts as a tiny bar magnet, and because they’re aligned in a N-S direction, the entire
`stripe is a bar magnet.
`
`Though, when the magnetic stripe is placed in a very strong external magnetic eld (of the opposite polarity –
`so if the magnetic stripe was N-S, the external eld is aligned S-N) then the polarity of the particle(s) on the
`stripe are ipped. This action of ipping the magnetic eld on the stripe is what “encoding” information is.
`
`This process of encoding is done by a solenoid. A solenoid is a coil of wire, in which a current is run through,
`which creates a change in magnetic ux, which then creates an induced magnetic eld inside the center of the
`coils in the solenoid.
`
`Solenoid with current and induced magnetic eld - Credit to Joseph Becker of San Jose State University - link
`
`on image.
`
`The solenoid has the ability of producing an extremely strong magnetic eld in a very small area. So, if current
`is run in one direction, a magnetic alignment is thereby created on the stripe. But, in order to have some type
`of data stored on the card, the current in the solenoid must alternate in opposite directions very quickly, so
`varying opposite magnetic eld alignments are created in very small areas, in very short amounts of times. So
`instead of having a stripe that has no data, (particles are aligned N-S-N-S) the solenoid creates a dierence in
`magnetic alignment (particles are aligned N-N-S-S-N-N) The N-S poles of the particles in the strip are reversed,
`and now data can be stored in binary code (1’s and 0’s—like a computer).
`
`The Physics Behind Encoding Magnetic Stripes
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`Explaining the Physics Behind Magstripes/ Experimental Conclusions | Lasers, Technology, and Teleportation with Prof. Magnes
`4/13/2020
`There are a few laws in magnetism that govern how current, voltage, and magnetic elds are related. First o, I
`should dene these terms.
`
`Magnetic Fields: (also known as B Fields) It is created at all points surrounding a moving electric charge.
`
`A certain law, called the Biot-Savart Law describes how a steady electric current creates a magnetic eld:
`
`B is the magnetic eld
`
`Mu naut is a constant for the permeability of free space = 4pi * 10^-7
`
`V is the velocity of the moving charge
`
`r-hat is the distance vector from the charge to a point of interest beyond the charge.
`
`Q is the magnitude of the charge (measured in coulombs)
`
`In this equation one takes a cross product of the velocity and r-hat vectors to get a value for the magnetic eld.
`
`There are many other equations that could be derived for specic situations such as a straight line of current,
`but I need not go into that for one can simply use two simple rules to nd out the direction of a magnetic eld.
`
`Right Hand Rule 1: take your right hand, point your thumb in the direction of the current.Picture the current
`going through a wire, then curl your ngers around the wire. Your four ngers point in the direction of the
`magnetic eld produced by the current.
`
`By applying this rule to the diagram of the solenoid, you can follow the current owing through the coils with
`your thumb and see that the magnetic eld points in a single direction no matter where on the coil you put
`your hand. Then, one can see by changing the direction of the current (alternating current), then the magnetic
`eld changes direction accordingly. This is how a solenoid can quickly and eectively achieve pole reversals.
`
`What exactly is happening when you swipe your credit card through a card reader?
`
`The process of swiping a card through a reader uses a few simple principles of physics. Faraday’s Law of
`Electromagnetic Induction explains this mechanism.
`
`Faraday’s Law:
`
`Epsilon (E) represents the EMF, otherwise known as the electromotive force – it is equivalent to a potential
`dierence, or, voltage.
`
`D(Phi)B represents a changing magnetic ux. A magnetic ux is the measure of the amount of magnetic eld
`passing through a given surface.
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`Explaining the Physics Behind Magstripes/ Experimental Conclusions | Lasers, Technology, and Teleportation with Prof. Magnes
`D(t) is a change in time.
`
`So, this equation tells us that a changing magnetic eld in a
`given amount of time produces voltage, which in turn can
`create a current in a pickup coil (in the card reader).
`
`Faraday's Law
`
`So, as noted before, the magnetic stripe has varying magnetic
`eld orientations along the length of the card. If the card is
`moved through a card reader (basically, a pickup coil (which is
`a closed loop — essentially forming a circuit)) then a change in magnetic ux is produced in one direction.  A
`change in magnetic ux (which in this case is a very short amount of time, because the card has many
`dierently oriented magnetic elds passing by the pickup coils, induces an EMF, or, a potential dierence. (as
`noted by Faraday’s Law).
`
`Furthermore, because a potential dierence (because of a separation of electric charges on the pickup coil) is
`created, then, by using Ohm’s Law, you can see that a current is induced in the pickup coil.
`
`Ohm’s Law:
`
`V is voltage, which is essentially what a potential dierence is, which is what an EMF is.
`
`R is the resistance of the material (resistance to movement of electric charges within the material). So in this
`case we’re concerned with the resistance of the pickup coil.
`
`I is the current, which in this situation is induced by the potential dierence created in the coil.
`
`The current received by the pickup coil goes through signal amplication, and is translated into binary code (the
`alternating magnetic elds do this) so that the signal could be read by a computer.
`
`Of course, this is an extremely simplied explanation of how information is stored on magnetic stripes and
`received by pickup coils, but these principles of physics are fundamental to understanding the mechanisms
`behind it.
`
`n magnetic data storage, there is always a risk of getting personal information lost. Unfortunately, the public
`remains largely uninformed on how criminals do this. This post will help clarify how crooks steal the important
`personal information of the public.
`
`Protecting Yourself From Card Identity Theft
`
`On a magnetic data storage card, which will be referred to as mag-swipe card for easier usage, there are three
`“data tracks.” Each track contains a certain amount of information, something that will be claried more below.
`Track one typically stores the account number, cardholder’s name, and the expiration date of the card. Track
`two was developed by the banking industry and typically stores a copy of the rst track but without the name of
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`Explaining the Physics Behind Magstripes/ Experimental Conclusions | Lasers, Technology, and Teleportation with Prof. Magnes
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`the cardholder. Track two also has a “service code” which relates to security functions, such as what type of
`transaction is permitted. For example, cash only, goods and services only, or ATM with PIN verication only.
`
`Below are examples of how information appears on magnetic strips:
`
`Track 1 – 76 alphanumeric characters
`
`– Start sentinel = %
`
`– Format code, B = bank/nancial format
`
`– Primary Account Number (PAN), up to 19 digits
`
`– Name, 2–26 characters
`
`– Expiry date
`
`Example: %B0123456789123456^MR A SMITH^0612…?
`
`Track 2 – 37 numeric characters
`
`– Start sentinel = ;
`
`– Primary Account Number (PAN), up to 19 digits
`
`– Expiry date – four characters
`
`– Service code – three characters (sss)
`
`– Discretionary data (DD) – PIN/card verication
`
`Example: ;0123456789123456=0612sssDD…?
`
`Track 3
`
`• Not usually used for nancial transaction cards
`
`• Track 3 – 104 numeric data characters
`
`– Start sentinel = +
`
`– Field code (FC)
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`Explaining the Physics Behind Magstripes/ Experimental Conclusions | Lasers, Technology, and Teleportation with Prof. Magnes
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`– Primary Account Number (PAN), up to 19 digits
`
`Example: +FC0123456789123456=…?
`
`[From: http://tiny.cc/hlpfc]
`
`There are many ways to read mag-swipe cards, from pocket devices to devices incorporated into keyboards.
`Unfortunately, the variety of these devices enables many extravagant fraudulent activities; some of these
`activities will be highlighted below.
`
`It is quite common for other equipment to be used in association with the skimmers; these are used to obtain
`PIN number details. Typically a camera would be used and positioned above the keypad area on the ATM
`machine to record the PIN number. During that time the camera would record all users of the machine
`entering their PIN. This information can then be easily correlated with that obtained from the skimmers by
`synchronizing the clocks.
`
`Technologies are being created to help defeat the skimming techniques aforementioned. One example of this
`is the “smart chip” which has been incorporated into many cards. This provides a more secure method of data
`storage than the mag-stripes do. Contact smart cards contain an array of gold metallic contacts connected to a
`silicon chip in the card. The chip include a microprocessor, an encryption / decryption engine, as well as a “Read
`Only” memory. The Read Only memory contains the operating program and a small amount of reusable
`memory.
`
`A video of one of our unsuccessful tests:
`
`MVI_0015 << (click this link)
`
`Project Conclusions
`
`After a number of card swipe tests at varying velocities, we averaged an idea card swipe velocity to be in the
`range of 0.17 – 1.8 m/s. For obvious reasons, swipes that were too fast, or two slow didn’t work. We postulated
`that the slow swipes were moving too slow to create a quick enough change in magnetic eld, so that no
`current was induced in the card reader. For fast swipes, we postulated that change in magnetic ux was too
`rapid to be discerned by the card reader.
`
`In the end, with principles of electromagnetic induction in Faraday’s Law, The Biot-Savart Law, and Ohm’s Law,
`we’ve shown how data magnetic stripes is created.
`
`Document Sources:
`
`Cole, David John. Schroeder, Fred E. H. Encyclopedia Of Modern Everyday Inventions. Greenwood Publishing
`Group, Inc. Connecticut, 2003. 38-41.
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`Explaining the Physics Behind Magstripes/ Experimental Conclusions | Lasers, Technology, and Teleportation with Prof. Magnes
`4/13/2020
`Rankl, Wolfgang. Eng, Wolfgang. Smart Card
`Handbook. John Wiley & Sons Ltd. UK, 2010.
`
`Green, Stephen. Magnetic Stripe: Back Up for
`Passports? Biometric Technology Today.
`Volume 12, Issue 7, July-August 2004, Page 5.
`Science Direct.
`
`Historical Overview of The Card Industry.
`High Tech Aid.
`http://www.hightechaid.com/tech/card/card_
`history.htm
`
`Masters, Gerry. Turner, Phillip. Forensic Data
`Recovery and Examination of Magnetic Swipe
`Card Cloning Devices. Digital Investigation.
`Volume 4, Supplement 1, September 2007,
`Pages 16-22.
`
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`How To Read Your Own Credit Card - credit to
`
`http://www.ebookpart.info/Magnetic-Stripe-Reader_3332.html
`
`This entry was posted in Magnetic Stripes on April 27, 2011 [https://pages.vassar.edu/ltt/?p=965] by tiserkes.
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