A system and method for securing a Radio Frequency (RF) transaction using
a RF identification device (RFID) transaction device is provided. RFID
transaction device includes a transactions counter for tallying the
number of transactions attempted or completed with the RFID transactions
device. Counter value is used to create a RFID device authentication tag
for use in validating the RFID device. A RFID reader, interacting with
the RFID device, provides a random number to the RFID device which may be
used in the RFID device authentication tag creation and validation. RFID
reader may also use counter value and random number to create a RFID
reader authentication key useful for validating RFID reader. RFID
transaction device may include an encryption key for creating RFID
transaction device authentication tag. Likewise, RFID reader may include
a RFID reader encryption key for creating RFID reader authentication tag.