What could a bogus WPAD server do?
A bogus WPAD server could provide arbitrary proxy server settings to web clients. In the simplest case, it could simply feed invalid ones to the clients, as a denial of service attack. However, in a more sophisticated attack, a bogus WPAD server could establish itself as a gateway for the network, thereby causing the network to route outgoing traffic through the hostile user’s site. This could allow the hostile user to eavesdrop on the network’s web browser traffic.
