Making Money Through

Of all the interesting new tech that seems poised to garner a lot of buzz in 2011, near field communication (NFC), is probably the most exciting. If it takes off, it will transform the ways we communicate, share, and make payments with digital devices. This will likely take years to happen, but the groundwork is being laid right now. And RFinity is one of those companies at the forefront.

While Google and Apple are responsible for generating much of the buzz about NFC at the moment, the technology goes far beyond simply having the right type of chip in your mobile device. For example, how do you handle different types of data transfers being made from one device to another? And how to you ensure that they happen as quickly as possible? And most importantly, how do you ensure that they happen securely? Those are the things that RFinity is thinking about.

The company has just raised $4 million from Horizons Ventures in Hong Kong. And the space has gotten so red hot, in fact, that we hear they’re already out raising another round.

And it’s an easy bet for investors to make not only because of the space, but because of where the project originated: The U.S. Department of Energy. Specifically, RFinity was born when a bunch of infrastructure security experts working for the government were assigned to find all the vulnerabilities in cell phones. Through software they came up with, they were able to quite easily eavesdrop, manipulate SMS messages, and even compromise LAN security. Then they set out to figure out a way to stop people from doing those very things. That work led directly to RFinity.

Work originally began in the person-to-person and person-to-vendor sales space by way of mobile applications that route transactions through RFinity’s own secure servers. But now that NFC appears ready, RFinity is making sure they’re ready for it. The idea is that their technology could cut out the middle man here: themselves.

Obviously, the company isn’t going to share all the details on how they secure NFC transfers. But the basic overview is that they verify an incoming NFC signal and ask for a user’s permission before taking any action. Further, if the action is a transaction, it requires a PIN, just as you might do an ATM withdrawal. That’s all pretty standard. But the key is one-time-use transaction codes that RFinity creates on the fly along with complex cryptographic signatures. These ensure that an transaction is secure since it means that every transaction can only happen once. Even if those numbers were intercepted by a hacker, they would be useless beyond the one-time payment.

And even if your phone is lost or stolen, a thief couldn’t do anything without your PIN. And you can remotely shut down your NFC capabilities via RFinity. It’s enough to make me wish I could throw out all my credit cards right now. “Today’s identification and transaction systems are based on what? A magnetic strip on the back of a card, based on a 1950’s technology that relies on a base station to read the information embedded as a series of simple magnetic markers in plastic tape,” writes Josh Jones-Dilworth, who is working with the company to bring them to market.

Again, NFC as a technology is great and potentially game-changing. But the software is still needed to make it actually work. And some of the big guys began realizing that early on as companies like PayPal, Bank of America, and even Subway have been testing out different things with RFinity for some time. In fact, RFinity has actually been doing field tests of the software end of their technology since 2009 in places like Idaho, well before most people in the U.S. had ever thought about NFC.

But now people are starting to care. And soon, they could be caring a lot more. NFC is already built-in to Google’s new Nexus S device — and the company has put out a call for developers to start using the tech. Rumors have the next iteration of the iPhone gaining the technology as well. In other words, I suspect we may be seeing acquisition rumors starting to fly around RFinity in about six months or so. Provided their technology proves up to the NFC challenge, of course.

Conservative Conference Warns Of Hidden Islamic Danger In ‘Race To The Top’ Funding

A new memo that has been making the rounds in conservative circles is a dire warning about an onslaught of Islamic “Gulen schools,” a growing international network of charter schools begun in Turkey that offer “a blend of religious faith and largely Western curriculum.”

At the Educational Policy Conference, a large gathering of social conservatives in St. Louis in January, prominent neoconservative and anti-Muslim conspiracy theorist Frank Gaffney, and former Colorado State Board of Education member Peggy Littleton sounded the alarm on the “creeping threat” of Gulen schools hidden in President Obama’s landmark education initiative, the Race to the Top program, which encourages innovation in education, including charter schools. Littleton, who currently serves as an El Paso County Commissioner, told conference-goers that “the only reason [Obama is] pushing more charter schools” through Race to the Top is “because of these Gulen schools.”

ThinkProgress caught up with Littleton after her speech. She told us that the Obama administration “intentionally had already thought through how they could have a proliferation and a sneaking creep, if you will, of Gulen schools by embedding their acceptance and even promotion of charter schools under this new wonderful thing of Race to the Top.” She warned that these schools were teaching our children to “hate Americans.” Watch it:

Not to be outdone, Gaffney told the audience that, along with the federal government and CPAC, Gulen schools were “another example of this Muslim Brotherhood kind of operation, stealth jihad.” Completing Fox News host Glenn Beck’s “worldwide Muslim caliphate theory,” Gaffney also declared that Fethullah Gulen, the namesake of Gulen schools, “is a fellow who I think envisions himself being the next Caliph.” He finished by calling Gulen schools “an insidious, seditious program” and called on conference-goers to spread the word to friends and elected officials. Watch it:

Full transcript, after the jump

First video:

LITTLETON: If you’ve done any research on Gulen schools, you need to get on the Internet and do some. Because I believe – and this is just my own personal opinion without any factual data to back it up – one of the only reasons the Obama administration is willing to stand in the face of teacher’s unions, who supported his campaign with large numbers by the way. The only reason he’s pushing more charter schools, even in the face of teachers unions, is by making states adopt charter school rules that are open and who are applying for Race to the Top funds, I think that he’s doing that because of these Gulen schools. The Gulen schools are the Muslim schools in our country. I’m showing you how many of them are already operating, you can see there’s 107 of them. Twelve of them are opening in 2010, nine are pending, 22 were declined. There are over 150 schools in the United States that are already out there that are telling the kids of the United States of America, “hate Americans and the whole rest of the…” and you’ll hear more about that tomorrow, I’m excited you’re going to get to see that.

KEYES: Do you think the administration anticipated the rise in Gulen schools as a result of Race to the Top education money?

LITTLETON: I don’t think they tied it to the money in any way, shape or form. But I do think they intentionally – and again, this is my own opinion – but I think they probably intentionally had already thought through how they could have a proliferation and a sneaking creep, if you will, of Gulen schools by embedding their acceptance and even promotion of charter schools under this new wonderful thing of Race to the Top and “let’s fund the schools this way.” Even though there’s not really the direct funding source, I think it was the intention to promote charter schools.

KEYES: Couched in very flowery language.

LITTLETON: Absolutely.

KEYES: Why do you suppose they want to do that?

LITTLETON: Well, there’s going to be speculation, by everyone that’s out there. You yourself I’m sure have done the research, you’ve seen and heard some of the things our own president has said about the Muslims. You’ve heard that he thinks we ought to be friendly to some of their causes, that we should be tolerant in promoting some of the Muslims that are scientists and technology people. I think we need to go back and research what our president has said and by his own words and admissions, I think you can probably make the connection.

Second video:

GAFFNEY: As to this question about a Turk by the name of Gulen, this is one of those little-known stories that I’m thrilled that you’ve mentioned because it is another example of this Muslim Brotherhood kind of operation, stealth jihad. This is a fellow who I think envisions himself being the next Caliph. He is enormously influential in his native Turkey, where he has helped instigate, essentially, an Islamist takeover of the country with a wholesale repudiation and replacement of Ataturk’s secular form of government with one that is through-and-through Islamist. And that’s now increasingly making common cause with Iran, with Syria, with Hezbollah, with Hamas, which is very clearly hostile to Israel, which Turkey was until recently strategic partners with. In short, it is headed in a very dangerous direction indeed, Turkey is. This guy, Gulen, has been extending his influence by building large numbers of these schools all over the world. And the really extraordinary thing is he’s doing so from a safe haven in Rick Santorum’s great state of Pennsylvania. For a time his operation was considered a terrorist group, until inexplicably the Clinton administration decided it wasn’t anymore. And so he is churning out an insidious, seditious program from within the territory of the United States. And I would venture there isn’t one member of Congress today who has ever heard of his name, let alone understands what he is up to. We’re anxious to try to spread this word, and to those of you who are in contact with one of your five folks you are reaching out to happens to be your elected representative at the federal level or for that matter the state level, we can help educate and equip with this kind of information, we’re anxious to do it.

When it comes to hatching conspiracy theories, conservatives and Islamophobia are a match made in heaven. In the wake of Egypt’s peaceful democratic revolution, Fox News host Glenn Beck warned his viewers that former President Mubarak’s ouster portended an impending worldwide Muslim caliphate, a prediction that earned Beck the ire of even the likes of Bill Kristol. Leading neoconservative Frank Gaffney is also a regular propagator of fanciful theories of Islam, from Muslim Brotherhood infiltration of the Conservative Political Action Conference to Muslim Brotherhood infiltration of the United States government.

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