A problem faced by the RFID industry is counterfeit RFID tags. Since most tags are just a sort of substitute for a barcode or magnetic strip label, and encryption is generally not a viable (or even desirable) option, RFID tags could be counterfeited and used for nefarious purposes, which you can entail.
However, a new company called Verayo (an MIT spinoff company) has formulated an at least partial answer to this dilemma. They have come up with a process for getting a sort of electronic fingerprint from individual RFID tags. Since there are small, necessary variations in the chip material and manufacturing process, no two RFID tags are exactly alike. Even if they meet the same specifications, there are small artifacts in the way that they process signals, which can be measured. Professor Srini Devadas, CTO of Verayo, says,
A signal traveling through a simple circuit will go faster or slower depending on these physical variations. By sending a series of signals through, and measuring how fast they travel, [one] can generate a string of numbers unique to each circuit.
This is a great step toward building more secure RFID systems. Each RFID tag would, essentially, be personally trackable on an almost meta-level. Of course, this added layer of security would cost more money, so it would have to be employed in only a cost-effective manners. But if you're tracking things like medicines or very expensive consumer goods, it may be a good step. Maybe Lilly Drugs could have avoided this latest embarrassment!