Security Concerns Slow Wi-Fi Adoption.(INTERNET & TECHNOLOGY)

Byline: SARAH Z. SLEEPER

In May, Best Buy Inc. stopped use of its wireless cash registers after anonymous hackers said they could access customer data.

The firm denied the breach, says John Pescatore, analyst at Gartner Inc. But analysts believe it happened. Best Buy was using a super-fast wireless technology known as Wi-Fi, for Wireless Fidelity.

The problem may have happened when Best Buy failed to follow even the simplest safety step: activate Wi-Fi's default security. "For wireless cash registers they could roll around to different spots in the store, they didn't even turn security on," said Pescatore.

That high-profile story has helped stymie a potentially useful wireless technology. Wi-Fi is touted as an inexpensive way to send large data files back and forth, but some companies won't try it because it's perceived as easy to hack, say analysts. Executives fear for the security of sensitive data, such as employment and financial histories.

"The security problem has caused a lot of companies to say, "Wait a minute. Do we really want to use wireless?' " said Pescatore. Even though traveling salespeople, warehouse workers and others could benefit from the ability to access key data on the run, some companies are reluctant to add Wi-Fi.

Still, many employees use Wi-Fi anyway. Pescatore estimates that one in five companies has a Wi-Fi user, unknown to the firm and without security in place.