Retailers' wireless LANs still full of security flaws

Retailers’ wireless LAN networks are riddles with vulnerabilities according to a global survey by Motorola's AirDefense group.

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Retailers’ wireless LAN networks are riddles with vulnerabilities according to a global survey by Motorola's AirDefense group.

The scan of WLANs in big city shopping centres found about 44% of some 3,900 client devices detected, including barcode scanners, notebooks PCs and mobile computers, could be compromised, according to Motorola AirDefense CTO Amit Sinha.

That is a significant improvement on last year's survey, which found 85% of the detected client devices were exposed in various ways.

Retailer access points were better protected: 68% of just over 7,900 access points were using some kind of encryption. Of those that were encrypted, 25% in the new survey were using Wireless Equivalent Privacy (WEP), a flawed encryption scheme that can be cracked in minutes by a knowledgeable attacker, according to Sinha.

The cost of data breaches to business is mounting. In its most recent study of 43 companies that suffered a data breach in 2008, the Ponemon Institute found the total cost of coping with the consequences rose to $6.6 million per breach, up from $6.3 million in 2007 and $4.7 million in 2006. For 84% of these companies the 2008 breach was at least their second.

Not all of these are due to wireless weaknesses, but many are, including the now-notorious TJX breach.

The AirDefense scan was the company's second annual survey of wireless security in the retail market. Sinah and other AirDefense staff used the company's flagship monitoring software and Wi-Fi card, AirDefense Mobile, to scan, but not penetrate, some 4,000 retail locations in North America, Europe, and this year, also in Australia and Korea, during the latter half of 2008.

Twelve percent of the scanned access points were using Wi-Fi Protected Access, an industry specification based on the then-draft IEEE 802.11i security standard, which was intended to strengthen wireless LAN security. The follow-on WPA2 is based on the final IEEE standard (and adds pre-authentication and pairwise master key caching).

Both WPA and WPA2 can be configured with different authentication options, which confirm two communicating devices can be trusted, and with different encryption schemes (TKIP and the stronger AES), which scramble the data over the WLAN. The choices affect the overall security of the WLAN.

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