Experts note that this legislation could cause headaches for both ISPs and Wi-Fi users, as customers can claim that other people have been illegally piggybacking on their Internet service. Last November, a Sophos poll of 560 computer users revealed that 54 percent have stolen Wi-Fi Internet access in the past.
"Pressure is being put on ISPs to take action, but an open Wi-Fi hotspot may mean that it is you who ends up disconnected from the net while your next door neighbor is happily watching the Hollywood blockbuster they stole via your Internet connection," said Graham Cluley, senior technology consultant at Sophos. "People who illegally download from the net material they haven't paid for aren't going to have any qualms about stealing someone else's Internet connection. The widespread scale of the problem not only means that there are likely to be innocent victims, but it also gives those people who have been making illegal downloads a plausible defense."
Under a 'three-strikes' regime, customers making illegal downloads will first receive an e-mail warning, then a suspension of their account, and finally termination of their contract. According to reports, ISPs that fail to enforce the rules could be prosecuted and details of suspected customers passed onto the courts.
"The ISPs are finding themselves between a rock and a hard place - they are being leaned on by the movie and music industry to block pirate downloads, but at the same time they don't want to alienate their customers by accusing them of something they didn't do," explained Cluley. "There is no 100 percent solution for blocking illegal downloads which doesn't also inconvenience the innocent."
Sophos recommends that home owners and businesses alike set up their wireless networks with security in mind, ensuring that strong encryption is in place to prevent neighbors from illegally using their Internet connection, and crucially to also defend against the risks of hackers eavesdropping on communications and potentially stealing usernames, passwords and other confidential information.
"If you're not encrypting your wireless communications, anyone close by can easily use your connection and while the intention may not always be malicious, the consequences can be severe," continued Cluley. "All Internet users need to wake up to the threats and ISPs must take greater steps to educate customers about the risks and how to overcome them."
Tips for preventing strangers from stealing your Wi-Fi connection
1. Use encryption
Wi-Fi Protected Access (WPA and WPA2) is a stronger encryption system than WEP, and can be used to reduce the chances of hackers intercepting your communications.
2. Use a password
Choose a strong password that has to be used to access your wireless access point. Don't use the default password that came with your Wi-Fi equipment or a dictionary word that is easy to guess or crack. (You may wish to read our article on sensible password use for help with this).
3. Don't broadcast the name of your wireless network
The name of your wireless network, known as the SSID, should not be broadcast to passers-by. In addition, choose an obscure hard-to-guess SSID name to make life harder for hackers. SSIDs such as "home", "wireless" or "Internet" are not good choices.
4. Use MAC address filtering
Wi-Fi routers and access points normally have the ability to prevent unknown
wireless devices from connecting. This works by comparing the MAC address of the device trying to connect with a list held by the router. Unfortunately, this feature is normally turned off when the router is shipped because it requires some effort to set up properly. By enabling this feature, and only telling the router the MAC address of wireless devices in your household you can reduce the chances of strangers' computers piggybacking your Internet connection.
Unfortunately it is possible for a determined hacker to clone MAC addresses, but this measure should still be taken to reduce the risks.
5. Restrict Internet access to certain hours
Some wireless routers allow you to configure Internet access to certain times of the day. For instance, if you know you will not need to access the Internet from home between 9-5, Monday to Friday, then schedule your router to disable access between those hours.
6. Make sure your computers are properly secured
Make sure all of your computers are properly secured with up-to-date anti-virus, security patches, and client firewall software.