WiFi, short for Wireless Fidelity, is the term commonly used for the different technologies and standards used for wireless networking. It is primarily used for wireless Internet, but it can also be used to describe point-to-point communication between devices.
Most laptops and PDAs and some smart phones come equipped with WiFi cards. The WiFi card on your device connects it to another device, known as an access point, that provides access to the Internet. The card can also connect directly to another laptop/PDA, in which case there is no need for an access point. WiFi technologies are radio protocols that work in unregulated frequency bands, which means that anyone who has Internet access at home can set up a wireless network using an access point.
Access points are commonly set up in public areas like airports, hospitals, cafeterias, hotels and other such public places.WiFi is commonly used in organizations, homes and businesses to allow people to wirelessly access the Internet. E-commerce involves the passing of sensitive information, like credit card numbers or bank account numbers, over the Internet, and the risk of losing the privacy of this information is high in public places. You should be very careful while using WiFi in public places, also known as WiFi "hotspots," because your mobile device or laptop is more vulnerable to attacks on such networks.
Theft of unencrypted wireless data can easily occur in public areas because WiFi hotspots do not provide encryption, such as WEP, WPA, or WPA2, in order to simplify the connection process and minimize the management workload. Because data is explosed in clear-text format in these areas, hackers can use wireless hacking tools to capture the data from thin air. Even when a WEP or WPA encryption key is required to connect in a WiFi hotspot, a hacker can easily get this key and capture data after connecting to the network.
An additional security threat related to WiFi is the "evil twin hotspot." These are hot spots set up by a hacker and made available to the public. Unknowing users who connect to the Internet using these access points are then exposing their sensitive information to the hacker. To avoid being tricked by this set up, check to see if the login to a WiFi hotspot is SSL encrypted, and look for a valid security certificate.
Finally, if you are a user of WiFi, it is all the more important to keep your security tools and firewall up-to-date. Maintain your computer's security regularly by downloading patches and updates for its tools and software. If the patch for a security feature is not applied or a firewall is outdated, then the computer becomes a favorite intruding point for hackers when it connects to WiFi.
References
- Wi-Fi Alliance

- How WiFi Works
(HowStuffWorks.com)
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