How are memory cards and smart cards different? 

Answer options:

A. Memory cards normally hold more memory than smart cards
B. Smart cards provide a two-factor authentication whereas memory cards don`t
C. Memory cards have no processing power
D. Only smart cards can be used for ATM cards

C

The main difference between memory cards and smart cards is their capacity to process information. A memory card holds information but cannot process information. A smart card holds information and has the necessary hardware and software to actually process that information. A memory card holds a users authentication information, so that this user needs only type in a user ID or PIN and presents the memory card to the system. If the entered information and the stored information match and are approved by an authentication service, the user is successfully authenticated. A common example of a memory card is a swipe card used to provide entry to a building. The user enters a PIN and swipes the memory card through a card reader. If this is the correct combination, the reader flashes green and the individual can open the door and enter the building. Memory cards can also be used with computers, but they require a reader to process the information. The reader adds cost to the process, especially when one is needed for every computer. Additionally, the overhead of PIN and card generation adds additional overhead and complexity to the whole authentication process. However, a memory card provides a more secure authentication method than using only a password because the attacker would need to obtain the card and know the correct PIN. Administrators and management need to weigh the costs and benefits of a memory card implementation as well as the security needs of the organization to determine if it is the right authentication mechanism for their environment. One of the most prevalent weaknesses of memory cards is that data stored on the card are not protected. Unencrypted data on the card (or stored on the magnetic strip) can be extracted or copied. Unlike a smart card, where security controls and logic are embedded in the integrated circuit, memory cards do not employ an inherent mechanism to protect the data from exposure. Very little trust can be associated with confidentiality and integrity of information on the memory cards. The following answers are incorrect: "Smart cards provide two-factor authentication whereas memory cards don`t" is incorrect.This is not necessarily true.A memory card can be combined with a pin or password to offer two factors authentication where something you have and something you know are used for factors. "Memory cards normally hold more memory than smart cards" is incorrect. While a memory card may or may not have more memory than a smart card, this is certainly not the best answer to the question. "Only smart cards can be used for ATM cards" is incorrect.This depends on the decisions made by the particular institution and is not the best answer to the question. Reference(s) used for this question: Shon Harris, CISSP All In One, 6th edition , Access Control, Page 199and also for people using the Kindle edition of the book you can look at Locations 4647- 4650. Schneiter, Andrew (2013-04-15). Official (ISC)2 Guide to the CISSP CBK, Third Edition : Access Control ((ISC)2 Press) (Kindle Locations 2124-2139). Auerbach Publications. Kindle Edition.