If your wireless network is unsecured then you are highly susceptible to:

 

Fraudulent charges on your credit card
Loans, apartment rentals, and other white collar crimes in your name
Wireless network viruses that destroy your computer and attack your cell phone
 

Hackers can easily decrypt wireless signals that contain much of the network's information, such as the network's SSID (Service Set Identifier).

However, there are some simple steps you can take to help reduce the chances of being the next victim of identity theft.

1. Change the administrator's password regularly:  If a hacker gets a hold of the administrator's password, he, too, can change those settings. So, make it harder for a hacker to get that information. Change the administrator's password regularly.

2. Limited signal coverage:  Limit the strength of your wireless network so it cannot be detected outside the bounds of your home or office.

3. Turn off SSID broadcasting:  When SSID broadcasting is enabled on a wireless network, this network can be identified by all wireless clients within range. Conversely when SSID broadcasting is disabled, the wireless network is not visible (to casual users) unless this code is entered in advance into the client's network setting.

4. Don’t rely on WEP Encryption:  Wired Equivalent Privacy (WEP) is often looked upon as a cure-all for wireless security concerns. This is overstating WEP's ability. Again, this can only provide enough security to make a hacker's job more difficult.

5. MAC Addresses:  Enable MAC Address filtering. MAC Address filtering will allow you to provide access to only those wireless nodes with certain MAC Addresses. This makes it harder for a hacker to access your network with a random MAC Address.

Additionally, there are several ways that WEP can be maximized:

 

1. Use the highest level of encryption possible

2. Use "Shared Key" authentication

3. Change your WEP key regularly

 

WPA
Wi-Fi Protected Access (WPA) is the newest and best available standard in Wi-Fi security. Two modes are available: Pre-Shared Key and RADIUS. Pre-Shared Key gives you a choice of two encryption methods: TKIP (Temporal Key Integrity Protocol), which utilizes a stronger encryption method and incorporates Message Integrity Code (MIC) to provide protection against hackers, and AES (Advanced Encryption System), which utilizes a symmetric 128-Bit block data encryption. RADIUS (Remote Authentication Dial-In User Service) utilizes a RADIUS server for authentication and the use of dynamic TKIP, AES, or WEP.

WPA Pre-Shared Key
If you do not have a RADIUS server, Select the type of algorithm, TKIP or AES, enter a password in the Pre-Shared key field of 8-64 characters, and enter a Group Key Renewal period time between 0 and 99,999 seconds, which instructs the Router or other device how often it should change the encryption keys.

WPA RADIUS
WPA used in coordination with a RADIUS server. (This should only be used when a RADIUS server is connected to the Router or other device.) First, select the type of WPA algorithm, TKIP or AES. Enter the RADIUS server's IP Address and port number, along with a key shared between the device and the server. Last, enter a Group Key Renewal period, which instructs the device how often it should change the encryption keys.

RADIUS
WEP used in coordination with a RADIUS server. (This should only be used when a RADIUS server is connected to the Router or other device.) First, enter the RADIUS server's IP Address and port number, along with a key shared between the device and the server. Then, select a WEP key and a level of WEP encryption, and either generate a WEP key through the Passphrase or enter the WEP key manually.

Implementing encryption may have a negative impact on your network's performance, but if you are transmitting sensitive data over your network, encryption should be used.

These security recommendations should help keep your mind at ease while you are enjoying the flexibility and convenience of wireless technology.