Brain wave sensing headphones?

A company called Mindset is crowdfunding for a set of headphones that can apparently use EEG combined with special algorithms to detect a user's brain waves to see if they are focused, distracted or tired.  Mindset claims using these headphones will keep users from getting distracted by telling them when they are distracted; therefore, promoting better concentration.  

Here is a link to their Kickstarter page: https://www.kickstarter.com/projects/mindset/headphones

This all seemed too good to be true, so I looked into the technology and physiology a little to see if it can actually work.  

We learned how nerve impulses travel through graded potentials and action potentials.  Everything we feel, think, and do is communicated through the body and brain by neurons and their changes in membrane potential.  This means that our thoughts create a tiny change in the charge of certain areas of our brain.  This can be measured by an electroencephalogram (EEG).  One study looked at the EEG of subjects while in a driving simulation.  They found that a concentrated driver had high activity in their frontal cortex compared to lower frontal cortex activity by a distracted driver (2).  This tells us that it is possible to determine if a person is distracted or not by using EEG.  The one used in this study probably had dozens of electrodes, required a saline solution for better conductivity, and cost thousands of dollars.  The mindset headphones only have five electrodes, they apparently need no saline and costs much less. Can they still detect distraction?  

Since the Mindset product is still in development, nobody other than the Mindset company has done research to see if it really works. A study tested a similar consumer EEG device.  This device with seven dry electrodes was used to test the brain waves of a meditating monk.  The team concluded that the much simpler and cheaper device effectively recorded a signal and could potentially be used in research applications (1).  So, maybe a set of headphones with five dry electrodes could accurately record EEG data.  

If products like this work, is it something we should be worried about?  If EEG can vaguely infer our thoughts, would it be dangerous if the collected data got into the wrong hands?  Ad companies could use it to determine if we are interested in a product or not! Hopefully, the companies developing consumer EEG are creating these devices to benefit the buyer's mental health instead of using it to manipulate them for money (Justice and beneficence!)

Comment what you think! Do these headphones look like they could work? Even if they do, what steps should be taken to protect our thoughts from being "hacked" ?

References:

1. D. Surangsrirat and A. Intarapanich, "Analysis of the meditation brainwave from consumer EEG device," SoutheastCon 2015, Fort Lauderdale, FL, 2015, pp. 1-6.
doi: 10.1109/SECON.2015.7133005

2. C. T. Lin, S. A. Chen, L. W. Ko and Y. K. Wang, "EEG-based brain dynamics of driving distraction," The 2011 International Joint Conference on Neural Networks, San Jose, CA, 2011, pp. 1497-1500.

doi: 10.1109/IJCNN.2011.6033401