Concerns
If router security is not activated or if the owner deactivates it for convenience, it creates a free hotspot. Since most 21st century laptop PCs have wireless networking built in (cf. Intel 'Centrino' technology), they don't need a third-party adapter such as a PCMCIA Card or USB dongle. Built in wireless networking might be enabled by default, without the owner realizing it, thus broadcasting the laptop's accessibility to any computer nearby.
Modern operating systems such as Mac OS, or Microsoft Windows make it fairly easy to set up a PC as a wireless LAN 'base station' using Internet Connection Sharing, thus allowing all the PCs in the home to access the Internet via the 'base' PC. However, lack of knowledge about the security issues in setting up such systems often means that someone nearby may also use the connection. Such "piggybacking" is usually achieved without the wireless network operators knowledge; it may even be without the knowledge of the intruding user if their computer automatically selects a nearby unsecured wireless network to use as an access point.
Security options
There are three principal ways to secure a wireless network.* For commercial providers, hotspots, and large organizations, the preferred solution is often to have an open and unencrypted, but completely isolated wireless network. The users will at first have no access to the Internet nor to any local network resources. Commercial providers usually forward all web traffic to a captive portal which provides for payment and/or authorization. Another solution is to require the users to connect securely to a privileged network using VPN.
* Wireless networks are less secure than wired ones; in many offices intruders can easily visit and hook up their own computer to the wired network without problems, gaining access to the network, and it's also often possible for remote intruders to gain access to the network through backdoors like Back Orifice. One general solution may be end-to-end encryption, with independent authentication on all resources that shouldn't be available to the public.
Access Control at the Access Point level
Another very simple technique is to have a secret ESSID (id/name of the wireless network), though anyone who studies the method will be able to sniff the ESSID.
Today all (or almost all) access points incorporate Wired Equivalent Privacy (WEP) encryption and most wireless routers are sold with WEP turned on. However, security analysts have criticized WEP's inadequacies, and the U.S. FBI has demonstrated the ability to break WEP protection in only three minutes using tools available to the general public (see aircrack).
The Wi-Fi Protected Access (WPA and WPA2) security protocols were later created to address these problems. If a weak password, such as a dictionary word or short character string is used, WPA and WPA2 can be cracked. Using a long enough random password (e.g. 14 random letters) or passphrase (e.g. 5 randomly chosen words) makes pre-shared key WPA virtually uncrackable. The second generation of the WPA security protocol (WPA2) is based on the final IEEE 802.11i amendment to the 802.11 standard and is eligible for FIPS 140-2 compliance. With all those encryption schemes, any client in the network that knows the keys can read all the traffic.
Restricted access networks
End-to-End encryption
The disadvantage with the end to end method is, it may fail to cover all traffic. With encryption on the router level or VPN, a single switch encrypts all traffic, even UDP and DNS lookups. With end-to-end encryption on the other hand, each service to be secured must have its encryption "turned on," and often every connection must also be "turned on" separately. For sending emails, every recipient must support the encryption method, and must exchange keys correctly. For Web, not all web sites offer https, and even if they do, the browser sends out IP addresses in clear text.
The most prized resource is often access to Internet. An office LAN owner seeking to restrict such access will face the non trivial enforcement task of having each user authenticate himself for the router.
Open Access Points
The density of access points can even be a problem - there are a limited number of channels available, and they partly overlap. Each channel can handle multiple networks, but places with many private wireless networks (for example, apartment complexes), the limited number of Wi-Fi radio channels might cause slowness and other problems.
According to the advocates of Open Access Points, it shouldn't involve any significant risks to open up wireless networks for the public:
* The wireless network is after all confined to a small geographical area. A computer connected to the Internet and having improper configurations or other security problems can be exploited by anyone from anywhere in the world, while only clients in a small geographical range can exploit an open wireless access point. Thus the exposure is low with an open wireless access point, and the risks with having an open wireless network are small. However, one should be aware that an open wireless router will give access to the local network, often including access to file shares and printers.
* The only way to keep communication truly secure is to use end-to-end encryption. For example, when accessing an internet bank, one would almost always use strong encryption from the web browser and all the way to the bank - thus it shouldn't be risky to do banking over an unencrypted wireless network. The argument is that anyone can sniff the traffic applies to wired networks too, where system administrators and possible crackers have access to the links and can read the traffic. Also, anyone knowing the keys for an encrypted wireless network can gain access to the data being transferred over the network.
* If services like file shares, access to printers etc. are available on the local net, it is advisable to have authentication (i.e. by password) for accessing it (one should never assume that the private network is not accessible from the outside). Correctly set up, it should be safe to allow access to the local network to outsiders.
* With the most popular encryption algorithms today, a sniffer will usually be able to compute the network key in a few minutes.
* It is very common to pay a fixed monthly fee for the Internet connection, and not for the traffic - thus extra traffic will not hurt.
* Where Internet connections are plentiful and cheap, freeloaders will seldom be a prominent nuisance.
On the other hand, in some countries including Germany, persons providing an open access point may be made (partially) liable for any illegal activity conducted via this access point.






