There's a thread here on the testing of Credential Authentication Technology at IAD. They can insert it into the machine and use the info on the credential to validate it against secure flight (e.g. does the person actually have a flight booked) and against known security features of the credential.
In theory? It's no more or less secure than the current visual scan of a document and then scanning of the barcode (for TSA Precheck issuing carriers boarding passes are digitally signed which proves they were not tampered with since the airline issued them; for other airlines, it's basically plaintext validation at the airport).
Last edited by TWA884; Aug 14, 2017 at 3:02 pm
Reason: Update link to referenced thread whose title was edited for clarity