Wireless security still lax

More than a third of businesses using wireless networks in the City of London are overlooking basic security, leaving themselves exposed to drive-by hackers.

The fourth annual Wireless Security Survey of London shows the number of wireless local area networks (WLans) increased by 62 per cent in 2004, with access points rising from 1,078 to 1,751.

But the research, conducted by security specialist netSurity on behalf of RSA Security, reveals that in the same period wireless security in London's business district worsened, leaving 36 per cent of firms open to potential attack, compared with 25 per cent in 2003.

'Given the awareness around wireless security, I thought the problem would have been solved by now,' said Tim Pickard, area vice president of international marketing at RSA Security.

The report warns this increase in unsecured wireless networks could lead to a rise in corporate information theft, sabotage and criminals using compromised networks to send spam and launch denial of service attacks.

'The golden chalice for criminals is anonymity and they can use insecure corporate networks knowing crimes won't be tracked back to them, but to the business instead,' said Phil Cracknell, chief technology officer at netSurity.

Basic security precautions are being overlooked, with 43 per cent of firms failing to switch on default wired equivalent privacy (WEP) encryption standards found in most wireless products, the report says.

'Wireless growth is inevitable as business users are demanding IT departments install it,' said Pickard. 'If simple steps such as scanning and changing default settings are taken, wireless can deliver great value to businesses.'

Seamus Reilly, senior manager at Ernst & Young's information security assurance and advisory practice, which has audited usage in London, says financial service firms are using wireless less, due to increasingly perceived risks.

'Incidents of fraud and identity theft are rising, but what makes it more worrying is that wireless security doesn't seem to be improving,' he said.

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