In response to the rise of crime in shortrange communication systems, a novel method for authenticating co-located devices is presented. Our method, Channel Randomness Yields Secure Proximity (ChRYSP) exploits the fundamental properties of the wireless RF channel to protect against relay attacks and replay attacks -the two most common impersonation attacks in short-range communication systems. ChRYSP is based on the fact that two devices in close proximity -typically a couple of wavelengthsexperience correlated fading on a received RF signal. ChRYSP is facilitated by the employment of a helper node and can be implemented by low-cost, narrowband transceivers. Numerical results demonstrate high accuracy in detecting both relay attacks and replay attacks.