No, the article says it might, conceivably be possible at some time in the future. Maybe. And maybe we'll also figure out FTL travel.
The article says:
It may be possible to determine the nationality of a passport holder by "fingerprinting" the characteristics of the RFID chip, Mahaffey said. "Taken to an extreme, this could make it possible to craft explosives that detonate only when someone from the U.S. is nearby," he said. At Black Hat, Mahaffey showed a video that simulates just that.
This is not on par with faster than light travel. Researchers say this represents a "real threat of targeted attack". link to video
No, really. They say it
may be possible to break the encryption on these things, if we assume that every cryptographer since Alan Turing was a blithering moron compared to the guys working for the terrorists. And then, if we take that assumption
to the extreme, then maybe they'll be able to pull sensitive data out of it! And here's a video of a simulation of what that might look like, if it was possible! You do know what "simulation" means, right?
Suggesting that a mature, trusted, open cryptographic system could possibly be broken in less than a hundred years, even with every computer on Earth dedicated to the task, is pretty much exactly like saying we might figure out FTL. Suggesting that someone working in secret could do it on the kind of hardware that you can find outside of the CIA or MIT is more like claiming it it's possible you could build an FTL craft out of an TV and an egg whisk.
The crypto I have on my computer is, to all intents and purposes, literally unbreakable. I'm betting that the ICAO has recommended cryptogaphy for biometric passports that's
at least as good as you can get off the shelf at Best Buy.
Actually, this article says the main reason the state department cites for the new passports is "enhanced security".
It will, in theory, make it harder to fake a passport, because the encrypted data will be impossible to change, but it'll still pass a visual inspection, and anything more thorough than that would get caught when the passport number is checked against the master database, anyway. I think most good fake passports are basically real passports, officially issued with fake data. The US government currently justifies everything with "security", and I don't think that proves that security is actually the reason they do anything.
Oh, and that article also points out that the RFID chip has a broadcast range in "inches", not feet. Because it needs to pick up power from the reader.