July 8, 2010 12:53 PM

Dangers of Free Public Wifi

By
CBSNews
(CBS)  Free wifi -- it's everywhere, from the coffee shop to the airport. It's convenient, but you may be putting your personal information at risk.

Experts warn that free Internet connections could lead to identity theft, "Early Show" Consumer Correspondent Susan Koeppen points out.

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She notes that nine million people fall victim to identity theft every year. And now, with thousands of wifi hot spots across the country, thieves are finding a new and easy way to steal your information.

Everywhere you look -- there's wifi. But web surfers beware: Hackers are out there and trying to use wifi to rob you blind.

Tim Pierson, an ethical hacker, told CBS News, "Information you'd send to and from your bank, information coming off of your credit card -- any of those types of information you'd rather people not have, goes over wifi."

Security experts estimate hackers can easily take in $1,000 worth of data from just one hacked computer.

Pierson explained, "I can basically do anything you would do on your computer and the best part about it, from the perspective of the hacker is, you're never going to know I've done it."

Pierson is a consultant who points out security flaws.

"The Early Show" asked Pierson and a fellow ethical hacker -- whose name was given only as Dino -- to show how easy it is to follow someone's every move online, using just a laptop and some hacking software.

In a New York coffee shop, Koeppen started a Google search on wifi. She didn't tell the hackers what she was looking up.

The hacker knew instantly that she searched for her name in the search engine.

Koeppen said all that hackers need to do is set up their own bogus wifi access point, such as one called "free public wifi." Then they just have to wait for unsuspecting computer users to log in.

Pierson said hackers can even access bank accounts and change the value of an account.

"That's scary," Koeppen said.

There are more than 220,000 public wifi hotspots in the U.S. The ethical hackers featured on the broadcast say you can't always trust the security measures you might think are in place to keep your info safe.

When the hackers seen on "The Early Show" set up their own wifi access point at a Manhattan hotel, which they called "Best Free Public Wifi," it wasn't long before dozens of wireless devices tried to log on, including, as part of this demonstration, an "Early Show" producer using an iPhone. When someone is given access, the hacker can then communicate with your device and attack it using the network.

Pierson said, "Basically, we're fishing. We basically got our bait like a fisherman would be casting his bait into the water and see who bites."

The hackers lured in nine users in their test within 30 minutes.

The bottom line, experts say, is to avoid public wifi altogether if you're using confidential accounts and information.

Pierson said, "The safest bet is not to use wifi for your confidential information. Just don't do it."

Tips for Safe Wifi Use:

1. Use a passcode or login -- Koeppen said it's a good sign if you have to use a password to access a wifi account.
2. Use a Virtual Private Network or VPN -- Download a free or low-cost copy for your computer and it will protect your information.

Copyright 2010 CBS. All rights reserved.
Add a Comment
by barbaram99 July 12, 2010 2:09 AM EDT
My friend bought 2 Notebook computers running the same OS. He gave me one for my birthday. We would use them at the same time. I turnt the wireless off as I was using it wired. His machine tornt my wireless back on. I watched it. So he bought a Vista to Windows 7 upgrade and install it..After that his machine could not turn mine on. It could be the OS. Have wi-fi at home.
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by ss433 July 8, 2010 4:53 PM EDT
wireless communication is inherently unsecure
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by davidhelesic July 8, 2010 5:58 PM EDT
Wired 'secure' networks (CAT5 blue cable) can also be compromised if laptop is connected to the network. 95% of laptops come with WiFi devices which are setup to automatically try and connect to any available WiFi Access Point. This then becomes the weakest link in the chain, through which hackers can then tunnel through and access data on any other system on the network. For a secure solution visit www.securenow.com.au
by ss433 July 8, 2010 6:34 PM EDT
you know what? I realize that most laptops have WiFi that is totally software controlled and it SUCKS!!! HP's laptops USED to have a hardward-based switch to turn off wireless so that you could have a stand alone machine if you needed/wanted to. Do HP's laptops still have this? Another bad thing is that the wireless cards usually can't be removed if you want. I have a MacBook, and I really like it, but I'm amazed at Apple's arrogance in thinking that there is never going to be a situation where their OS will be hacked and the wireless will not become an open door. Just put a d.arn hardware-based switch in there, for goodness!
by bobnjersey July 8, 2010 1:06 PM EDT
[Use a Virtual Private Network or VPN -- Download a free or low-cost copy for your computer and it will protect your information. ]

and everything just outlined above about the ability to exploit someones use of 'free wifi' could apply w/ your 'free vpn software' as well.
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by Breanna_Carroll July 8, 2010 12:53 PM EDT
I don't use any free WIFI. When I'm at school your logged into the WIFI through your network credentials and at home I use WPA2.
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by davidhelesic July 8, 2010 5:30 PM EDT
WPA2 alone is also unsecure.. There are more sophisticated methods to hack WIFI without attempting to crack the pass phrase. More on that at http://www.securenow.com.au
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