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From the Schneier on Security blog
This is a clever side-channel attack:
The cloning works by using a hot air gun and a scalpel to remove the plastic key casing and expose the NXP A700X chip, which acts as a secure element that stores the cryptographic secrets. Next, an attacker connects the chip to hardware and software that take measurements as the key is being used to authenticate on an existing account. Once the measurement-taking is finished, the attacker seals the chip in a new casing and returns it to the victim.
Extracting and later resealing the chip takes about four hours. It takes another six hours to take measurements for each account the attacker wants to hack. In other words, the process would take 10 hours to clone the key for a single account, 16 hours to clone a key for two accounts, and 22 hours for three accounts...