Abstract. In this work we present a security model for low-value transactions in ad-hoc networks in which we focus on authentication since this is the core requirement for commercial transactions. After a brief introduction to the ad-hoc networking paradigm we give a survey of various existing models and analyze them in terms of scope and applications. It follows that no appropriate and satisfactory model for low-value transactions in ad-hoc networks has been developed to date. Our new model is derived from previous models dealing with trust and security in ad-hoc networks, and does not require devices with strong processors as publickey systems. We base the model on a recommendation and reference protocol that is inspired by human behavior and that is in accordance with the very nature of ad-hoc networks.