WPA Encryption Cracked
The original wireless encryption protocol, WEP (Wired Equivalent Privacy), was quickly found to be flawed and somewhat trivial to break. There are tools out there that can crack WEP encryption in a matter of seconds. Security experts (myself included) have warned that WEP is insecure and prescribed the use of WPA. Enterprises that rely on WPA encryption to secure their wireless networks will have to consider other alternatives such as WPA2, or requiring some sort of VPN tunnel to provide stronger security than what WEP or WPA provide.
What should home users do? Probably nothing. By all means, if you have WPA2 available as an option, you should use it. However, many home users are still not protecting their wireless networks at all, so even WEP or WPA would be an improvement. It is certainly possible that someone could crack the WEP or WPA encryption and compromise a home wireless network, but most attackers aren't going to take the time- even a few minutes- to bother breaking into an encrypted wireless network when there are 3 or 4 unencrypted wireless networks available in the same neighborhood. Enterprises have a more critical concern due to compliance requirements as well as an increased potential for being targeted for attack.


Comments
This blog entry and the NetworkWorld article it references overstate the crack’s seriousness. The blog also implies that WPA2 is synonymous with CCMP/AES, which is misleading.
The crack does not enable anyone to read someone else’s email, steal credit card numbers, etc. It merely allows the key to be recovered for the Message Integrity Code (MIC) on wireless routers that have Quality of Service (QoS) enabled. It’s clever and worrisome, but has no useful application anyone’s pointed out, yet.
Further, using WPA2 won’t solve anything, necessarily. WPA2 is a certification that says the equipment supports the TKIP and CCMP protocols, which use RC4 and AES encryption, respectively. So, WPA2 will help only if TKIP/RC4 is disabled.
http://www.grc.com/sn/sn-170.htm provides a good discussion of the crack and its implications.