Recovering billions in tax revenue with UCODE DNA

Recovering billions in tax revenue with UCODE DNA

Did you know that vehicle registration fees often go uncollected? Frost and Sullivan estimates that, in the U.S. alone, the noncompliance rate for vehicle registration is between 5 and 10%, representing between $750 million and $1.5 billion in fees that go uncollected by states each year. The situation is worse in other places, with some countries reporting that nearly a third of all vehicles are out of compliance. That’s a lot of uncollected tax revenue.

Fortunately, there’s a technology that can help. NXP’s latest generation of passive UHF RFID, called  UCODE DNA, can be used in Automatic Vehicle Identification (AVI) systems that make it easier to identify – and collect from – drivers of vehicles that aren’t properly registered.


A breakthrough in RFID

UCODE DNA is a breakthrough for RFID in that it combines long read range and high security. When built into a license plate, for example, UCODE DNA has a read range of about 15 m, and when built into a windshield sticker, has a read range of about 10 m. The use of crypto authentication means true security, and with NXP innovative privacy protection, there is no possibility for tracking since each wireless response from the RFID tag is unique and generated based on a new computation. So each transmission is different from the one before, and the secrets which are used as the basis for the computations are never transmitted, i.e. they are securely inserted and then kept in an electronic vault on the tag. Thus, security based on crypto authentication is protected against emulation and reverse engineering.

Roadside readers

In an AVI system for vehicle registration, readers can be installed above, below, or to the side of the road. They can also be embedded in a handheld device, for use by government personnel. Either way, the tag, attached to the vehicle, uses the energy produced by the reader’s RF field, so there’s no need for a battery and the tag has a very long lifespan.

Tag readings happen in real time, at real speeds. The UCODE DNA system is fast enough to identify thousands of items in a single hour, and that means readers can be installed just about anywhere vehicles travel, including alongside freeways.

Higher accuracy, less fraud

Cryptography-based security minimizes errors and practically eliminates fraud. Vehicle owners (and fee collectors) can be confident that the right person is being billed, since UCODE DNA readings are both highly accurate and highly secure. Also, because UCODE DNA tag is designed for counterfeit protection, there are fewer opportunities for theft, misuse, and false registrations.

Safe investment, easy deployment

UCODE DNA is both inexpensive and easy to deploy. In terms of installment and maintenance, it’s far less expensive than other approaches to AVI, such as optical systems and systems that use onboard units. Also, once cars are equipped with UCODE DNA tags, the system can be extended to support other applications, and thereby maximize the investment. As examples, police forces can use the tags to issue traffic violations or locate stolen vehicles, and government-run fleets can use the tags for vehicle management.

Another advantage is that developers don’t have to be security experts to use UCOCE DNA. NXP provides full design-in support and even offers Trust Provisioning, where crypto functions are set up and personalized during manufacturing. Also, because UCODE DNA is based on international standards, and not proprietary algorithms, designers can be confident that the technology will be interoperable and will work as specified.

Join the conversation

Have you used an AVI system, such as automatic toll collection? What do you think might be the impact of using AVI to enforce vehicle registration?


Related links

NXP page for UCODE DNA

NXP webinar on Automatic Vehicle Identification (AVI)

Mahdi Mekic
Mahdi Mekic
Mahdi Mekic has been in the RFID industry for almost 15 years and has had a broad range of roles involving product development, application support, solution management and marketing. Currently Marketing Director at NXP Semiconductors, Mahdi explores the use of innovative RFID products and services in new application markets such as automatic vehicle identification, smart manufacturing, food retail, airline baggage tagging and blockchain.

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