tl;dr
Scott's most relevant points:
1. "This is a key fob that looks like a car alarm beeper that some pump users use to discretely give themselves insulin doses. However, I feel the need to point out as a pump wearer myself that:
Not every Insulin Pump has a remote control feature. Not every remote-controllable insulin pump has that feature turned on. Mine does not, for example."
2. "all he requires to perpetrate the hack is the target pump's serial number. This is like saying "I can open your garage door with a 3rd party garage door opener. Just give me the numbers off the side of your unit..."
3. If you are a diabetic on a pump who is concerned about this kind of thing, my suggestion is to turn off your pump's remote control feature (which is likely off anyway) and turn off your sensor radio when you are not wearing your CGM. Most of all, don't panic. Call the manufacturer and express your concern. In my experience, pump manufacturers do not mess around with this stuff. I'm not overly concerned.
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Also - someone asked how much entropy was in the serial ID's on these units ?
Even if entropy is low are - how are you going to randomly select a person, and know their serial ID ? Unless you know what units are distributed to what hospitals/doctors - at exact times - at exact shipments and then from the sample delivered know the exact unit given to any person at any particular time.
Sure, if you know a "set of id's" you could try each one sequentially until you finally get a hit - but even then, you must somehow ensure the person being targeted has remote connection turned on. I'm pretty sure walking up to them and saying "oh, hai 'dere! ... plz turn on ur remotz connetz'n 4 me?" [ said in this voice - http://www.youtube.com/watch?v=xh_9QhRzJEs ] - is going to make them pretty suspicious.
There's a lot of "ifs" in there and frankly - if your aim was kill them - it would be a lot faster to do it some other way because to actually get all these things to line up perfectly .... your chances are pretty slim.
I'm a bit of sceptic on this 'hacking' - not to say that it's great that it has been uncovered - but your dealing with minute hardware where every single ms of processing power counts. Simple encryption should be utilized [but then this might be easily hacked anyway ?] but for units placed inside the body [pacemakers and the like] - splitting the units resources between keeping the patient alive vs. encryption for wireless protocols seems to weigh more heavily on the former than the later given how unlikely - for the majority of the world - these 'attacks' are going to be.