Wireless LANs are everywhere these days from home to large enterprise corporate networks due to the ease of installation, employee convenience, avoiding wiring cost and constant mobility support. However, the greater availability of wireless LANs means increased danger from attacks and increased challenges to an organization, IT staff and IT security professionals. This paper discusses the various security issues and vulnerabilities related to the IEEE 802.11 wireless LAN encryption standard and common threats/attacks pertaining to the home and enterprise wireless LAN system and provide overall guidelines and recommendation to the home users and organizations.