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When they are placed in a car which uses transponder technology the chip transmits an unintentional signal to a receiver near the ignition switch. This causes the engine to start in the event that it has been programmed for it. Transponder chips are designed to prevent car theft and that is why the majority of modern cars use them.<br><br>During World War II, coded messages were broadcast over radio frequencies to determine if an aircraft was friendly or hostile. The same idea was later used to create car keys as well, with General Motors creating the first transponder chip keys in 1985 for its Corvette model. Since then, a majority of new cars come with keys that have transponder chips, and they are also popular for older models that can be retrofitted with them.<br><br>If you own a car with this type of security system, it is recommended to always have an extra transponder keys on hand, since it only works only if the chip has been scanned properly. This is not foolproof. 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