There is little a software-based solution can do in this case, unless your
keyboard can do cryptography.
In addition, CardSpace can provide little security against code executing with
administrator privileges on the computer. However, regardless of the account
that is being used, it is always a good security practice to restrict physical access
to your computer to only trusted people. Also take the necessary precautions to
prevent malicious code from being installed or run on your computer.
206 Windows CardSpace
The desktop provides the following:
Protection for users as they enter authentication information
when using a Managed Card
A barrier to malicious applications that try to capture
information about the cards that the users have because
this information can be used at some later point to try
and trick users into thinking they are in the CardSpace
experience.
Despite the advantages of the private desktop, some of the
CardSpace UI executes on the default desktop. Any time
CardSpace opens a ?¬?le dialog box, the user is switched back to
the default desktop. A window opens behind the ?¬?le box, displaying
the bitmap of the faded desktop, to maintain a consistent
experience.
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