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First my sincerest apologies for my question if it is stupid and/or not a topic to be addressed here. My knowledge of anything beyond the use of a computer is fairly limited. I set up our WiFi Modem ...
Ok, you have nothing to worry about as far as security is concerned. Despite what you might think, you don't have exclusive use of a Wi-Fi channel. Multiple, neighboring Wi-Fi networks can use the same channel. They simply have to share airtime. It's best to find an unused channel, but if your neighborhood is crowded, then the next best choice is to pick the least congested channel.
Do you have a Wi-Fi password set for your network? If not, you should add one right away. Make sure to use WPA2-AES security, if at all possible.
Yes, I do have password in place and currently set to WPA2-PSK. Is it an issue that someone is doing this? What other steps do I need to take if any?