In this paper, we analyze security and privacy issues in RFID-based reference point systems, which seamlessly provide high resolution location information so as to enable innovative mobile applications. Our preliminary analysis revealed the significance of the labor cost in deploying RFID reference points; therefore, we carefully analyze several system architecture candidates in terms of deployment cost and security/privacy threats. Based on the analysis, we select a scalable architecture to avoid the bottleneck in deployment cost even though it can be less secure. Finally, we briefly discuss potential solutions for critical security and privacy issues in the selected architecture.