Wi-Fi
Security
Kathleen was my employee many years ago. She graduated from Caltech with a master
degree in computer science. She sent an email to me regarding Wi-Fi wireless Security
issue. I believe it is important to know.


Saturday, March 19, 2005
How are you? I visited your website lately – looks like you are doing really well on the
stock trading business, lots of new students?

I just read this article about Wi-Fi security. It says that Starbucks are secured, but be
careful when you go to hotels , other coffee shops or public area that you can login
wirelessly (or if you have set up one at home, make sure it is secured) without a secured
network, your username and password to stock trading could be stolen. Thought this
article might be helpful to you.

Kathleen

________________________________________

If you want to read the details, you need to sign up New York Times webpages.

Growth of Wireless Internet Opens New Path for Thieves
By SETH SCHIESEL

Published: March 19, 2005

he spread of the wireless data technology known as Wi-Fi has reshaped the way millions
of Americans go online, letting them tap into high-speed Internet connections effortlessly
at home and in many public places.

But every convenience has its cost. Federal and state law enforcement officials say
sophisticated criminals have begun to use the unsecured Wi-Fi networks of unsuspecting
consumers and businesses to help cover their tracks in cyberspace.

In the wired world, it was often difficult for lawbreakers to make themselves untraceable on
the Internet. In the wireless world, with scores of open Wi-Fi networks in some
neighborhoods, it could hardly be easier.

Law enforcement officials warn that such connections are being commandeered for child
pornography, fraud, death threats and identity and credit card theft.

"We have known for a long time that the criminal use of the Internet was progressing at a
greater rate than law enforcement had the knowledge or ability to catch up," said Jan H.
Gilhooly, who retired last month as special agent in charge of the Secret Service field
office in Newark and now helps coordinate New Jersey operations for the Department of
Homeland Security. "Now it's the same with the wireless technologies."

In 2003, the Secret Service office in Newark began an investigation that infiltrated the
Web sites and computer networks of suspected professional data thieves. Since October,
more than 30 people around the world have been arrested in connection with the
operation and accused of trafficking in hundreds of thousands of stolen credit card
numbers online.

Of those suspects, half regularly used the open Wi-Fi connections of unsuspecting
neighbors. Four suspects, in Canada, California and Florida, were logged in to neighbors'
Wi-Fi networks at the moment law enforcement agents, having tracked them by other
means, entered their homes and arrested them, Secret Service agents involved in the
case said.

More than 10 million homes in the United States now have a Wi-Fi base station providing
a wireless Internet connection, according to ABI, a technology research firm in Oyster
Bay, N.Y. There were essentially none as recently as 2000, the firm said. Those base
stations, or routers, allow several computers to share a high-speed Internet connection
and let users maintain that connection as they move about with laptops or other mobile
devices. The routers are also used to connect computers with printers and other devices.

Experts say most of those households never turn on any of the features, available in
almost all Wi-Fi routers, that change the system's default settings, conceal the connection
from others and encrypt the data sent over it. Failure to secure the network in those ways
can allow anyone with a Wi-Fi-enabled computer within about 200 feet to tap into the
base station's Internet connection, typically a digital subscriber line or a cable modem.

Wi-Fi connections are also popping up in retail locations across the country. But while
national chains like Starbucks take steps to protect their networks, independent coffee
shops that offer Wi-Fi often leave their connections wide open, law enforcement officials
say.

In addition, many universities are now blanketing campuses with open Wi-Fi networks,
and dozens of cities and towns are creating wireless grids. While some locations charge a
fee or otherwise force users to register, others leave the network open. All that is needed
to tap in is a Wi-Fi card, typically costing $30 or less, for the user's PC or laptop. (Wi-Fi
cards contain an identification code that is potentially traceable, but that information is not
retained by most consumer routers, and the cards can in any case be readily removed
and thrown away.)

When criminals operate online through a Wi-Fi network, law enforcement agents can
track their activity to the numeric Internet Protocol address corresponding to that
connection. But from there the trail may go cold, in the case of a public network, or lead to
an innocent owner of a wireless home network.

"We had this whole network set up to identify these guys, but the one thing we had to take
into consideration was Wi-Fi," Mr. Gilhooly said. "If I get to an Internet address and I send
a subpoena to the Internet provider and it gets me a name and physical address, how do I
know that that person isn't actually bouncing in from next door?"

Mr. Gilhooly said the possibility of crashing into an innocent person's home forced his
team to spend additional time conducting in-person surveillance before making arrests.
He said the suspects tracked in his investigation would regularly advise one another on
the best ways to gain access to unsecured Wi-Fi systems.

"We intercepted their private conversations, and they would talk and brag about, 'Oh
yeah, I just got a new amplifier and a new antenna and I can reach a quarter of a mile,' "
he said. "Hotels are wide open. Universities, wide open."

Sometimes, suspected criminals using Wi-Fi do not get out of their car. At 5 a.m. one day
in November 2003, the Toronto police spotted a wrong-way driver "with a laptop on the
passenger seat showing a child pornography movie that he had downloaded using the
wireless connection in a nearby house," said Detective Sgt. Paul Gillespie, an officer in
the police sex crimes unit.

The suspect was charged with child pornography violations in addition to theft of
telecommunications services; the case is pending. "The No. 1 challenge is that people are
committing all sorts of criminal activity over the Internet using wireless, and it could trace
back to somebody else," Sergeant Gillespie said.

Holly L. Hubert, the supervisory special agent in charge of the Cyber Task Force at the F.
B.I. field office in Buffalo, said the use of Wi-Fi was making it much more difficult to track
down online criminals.

"This happens all the time, and it's definitely a challenge for us," she said. "We'll track
something to a particular Internet Protocol address and it could be an unsuspecting
business or home network that's been invaded. Oftentimes these are a dead end for us."

Ms. Hubert says one group of hackers she has been tracking has regularly frequented a
local chain of Wi-Fi-equipped tea and coffee shops to help cover its tracks.

Many times the suspects can find a choice of unsecured wireless networks right from
home. Special Agent Bob Breeden, supervisor of the computer crime division for the
Florida Department of Law Enforcement, said a fraud investigation led in December to the
arrest of a Tallahassee man who had used two Wi-Fi networks set up by residents in his
apartment complex.

Over those Internet connections, the suspect used the electronic routing information for a
local college's bank account to pay for online pornography and to order sex-related
products, Mr. Breeden said. The man was caught because he had the products delivered
to his actual address, Mr. Breeden said. When officers went to arrest him, they found his
computer set up to connect to a neighbor's wireless network. Mr. Breeden said the
suspect, Abdul G. Wattley, pleaded guilty to charges of theft and unauthorized use of a
communications network and was sentenced to two years' probation.

In another recent case, the principal of a Tallahassee high school had received death
threats by e-mail, Mr. Breeden said. When authorities traced the messages to a certain
Internet Protocol address and went to the household it corresponded to, Mr. Breeden
said, "Dad has his laptop sitting on a table and Mom has another laptop, and of course
they have Wi-Fi, and they clearly didn't know anything about the threats."

Cybercrime has been known to flourish even without Wi-Fi's cloak of anonymity; no such
link has been found, for example, in recent data thefts from ChoicePoint, Lexis/Nexis and
other database companies.

But unsecured wireless networks are nonetheless being looked at by the authorities as a
potential tool for furtive activities of many sorts, including terrorism. Two federal law
enforcement officials said on condition of anonymity that while they were not aware of
specific cases, they believed that sophisticated terrorists might also be starting to exploit
unsecured Wi-Fi connections.

In the end, prevention is largely in the hands of the buyers and sellers of Wi-Fi
equipment. Michael Coe, a spokesman for SBC, the nation's No. 1 provider of digital
subscriber line connections, said the company had provided about one million Wi-Fi
routers to its customers with encryption turned on by default. But experts say most
consumers who spend the $60 to $80 for a Wi-Fi router are just happy to make it work at
all, and never turn on encryption.

"To some degree, most consumers are intimidated by the technology," said Roberta
Wiggins, a wireless analyst at the Yankee Group, a technology research firm in Boston.
"There is a behavior that they don't want to further complicate their options."

That attitude makes life easier for tech-savvy criminals and tougher for those who pursue
them. "The public needs to realize that all they're doing is making it harder on me to go
find the bad guys," said Mr. Gilhooly, the former Secret Service agent. "How would you
feel if you're sitting at home and meanwhile someone is using your Wi-Fi to hack a bank
or hack a company and downloads a million credit card numbers, which happens all the
time? I come to you and knock on your door, and all you can say is, 'Oops.' "
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