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Radio Frequency Identification (RFID) is a technology for wireless information exchange over short distances. Even though the technology itself was invented about 40 years ago, recent development in the field of low cost RFID devices began to finally show its potential. The possibility of adding (minimal) computing capabilities to every day¿s objects will support the development of ubiquitous computing in the near future. Applying RFID transponders to consumer goods will be common, creating an ever-present computing environment spanning all parts of every day¿s life. Today RFID commerce already constitutes a vital and ever-expanding market. Judging by evidence from recent years, RFID industry will continue its rapid growth during the following years. In such a developing market security and privacy become increasingly important. They define security as a composite of the attributes confidentiality, integrity and availability (also called CIA).In this context, confidentiality means the absence of unauthorized information disclosure.