The Food and Drug Administration (FDA) approved the VeriChip implant for medical use in humans in October, a huge victory for Applied Digital.

In an effort to jumpstart interest, the company launched the "Get Chipped" campaign. It is offering a discount to the first few hundred people who get the implant, and also plans to donate hundreds of scanners to the nation's trauma units to promote use of the VeriChip.

But in a letter obtained by CBN News from the FDA to the VeriChip makers, the microchip is not completely safe. In fact, the letter lists a whole host of health risks associated with the device, including "adverse tissue reaction," "electrical hazards" and "MRI incompatibility."

Applied Digital and the Food and Drug Administration refused our requests for an interview to discuss these risks.

Consumer privacy advocate Katherine Albrecht said, "There are millions of people that have read the press reports about all the positives of this technology, but really have no idea about its dangers."

Albrecht strongly opposes the VeriChip for the physical risks it poses, as well as the privacy risks. She has been called "the Erin Brokovich of RFID chips."

On her Web site, www.spychips.com, Albrecht reveals the potential dangers of the VeriChip and other radio frequency identification methods.

Albrecht said, "There's a very serious concern that, already, engineers and people who think along those lines are already thinking like hackers and criminals -- they're already starting to say, how can this system be compromised, how can it be abused? When you are dealing with a radio frequency device, by design, it is transmitting info using invisible radio waves at a distance. In this case, that distance is only a couple of inches or a couple of feet so it?s not a huge distance, but it means that anyone who can get within a couple of inches or a few feet of you, even with a reader device they have hidden in a backpack or a purse, would be able to scan that number, obtain that info and potentially duplicate it."