Abstract. Radio Frequency Identification (RFID) is a new recognition technology used to identify each item in commodity. During trading, tags which are attached to goods will be read by the readers and their ownership need transferring to complement the transaction process and service. Tags and readers are apt to be attacked during the communication between them due to the wireless channel and the weak resource of the RFID tag. Tags in trading also need forward and backward security besides the ordinary security requirements in other circumstances. There are many previously proposed protocols while most may suffer from spending problem because they use hash or keyed encryption function. In this paper we propose a secure ownership transfer protocol that conforms to the EPCglobal Class 1 Generation 2 (C1G2) standards. Our work aims to propose a low-cost protocol, based on simple XOR, Cyclic Redundancy Check (CRC) and 16- bit pseudo-random number generators (PRNG). We also put a trust model in which we make some assumption which is useful to introduce our protocol. Furthermore, we add a sign bit to mark the tag's state to introduce a “release-transfer-resumption” mode. The analysis shows that the proposed scheme can resist common attacks and ensure a security communication.