Sure, you might think you're being clever, connecting to that unsecured wifi hotspot. Hey, just checking email, right? They should have secured their wifi if they didn't want me connecting, right?
Beware! The other end of that connection just might be a Karma hotspot, setup by a malcious person, to gather your data and your passwords. Maybe much, much more.
Karma is a wireless sniffer that looks for probe requests from wireless clients. Once it receives a request (which your wireless client sends out all the time), Karma pretends to be the access point that the client is seeking. Karma is fully configurable - it might be a coffee shop name like "Starbuck wireless" or "T-mobile". Looks fine, right? Think again.
Once you join this rogue hotspot, Karma provides all sorts of services. DHCP, DNS, POP3 (mail), HTTP, File sharing, etc. If your internet just broke, that would be good for us. We'd just disconnect, and Karma wouldn't get any of our info. But Karma HAS an active connection to the net, usually, so all your requests eventually make it to the net - after being proxied and collected by Karma, unfortunately.
Karma can even present an SSL certificate to you, masquerading as a secured site. But the certificate will break, and you'll receive an error about an invalid cert. But, studies show that 80% of users just hit OK through SSL certificate errors. Yikes!
(More info about certificate errors here: http://windows.microsoft.com/en-US/windows-vista/About-certificate-errors)
The moral? Ensure you're connecting to the hotspot you're expecting. Check with the barista at coffee shops for the actual SSID of the hotspot.
And never, ever, every click through an SSL certificate error unless you KNOW it's OK. Because it usually aint.