If you have a passport, now is the time to renew it -- even if it's not
set to expire anytime soon. If you don't have a passport and think you
might need one, now is the time to get it.
The shielding does no good when the passport is open. Travel abroad and you'll notice how often you have to show your passport: at hotels, banks, Internet cafes. Anyone intent on harvesting passport data could set up a reader at one of those places. And although the State Department insists that the chip can be read only by a reader that is inches away, the chips have been read from many feet away.
The other security mechanisms are also vulnerable, and several security researchers have already discovered flaws. One found that he could identify individual chips via unique characteristics of the radio transmissions. Another successfully cloned a chip. The State Department called this a "meaningless stunt," pointing out that the researcher could not read or change the data. But the researcher spent only two weeks trying; the security of your passport has to be strong enough to last 10 years.
This is perhaps the greatest risk. The security mechanisms on your passport chip have to last the lifetime of your passport. It is as ridiculous to think that passport security will remain secure for that long as it would be to think that you won't see another security update for Microsoft Windows in that time.
Clicky to read the entire thing.