Security for devices

Hacking is quite common nowadays. Hackers are highly skillful in hacking all sorts of computer data. I have a security system which is quite old. So I guess it is not hack-proof. Yesterday one of my colleague's system was hacked. All the data in it was leaked. Now I am a little bit tensed and is planning on changing it. Recently I went through an article security alarm installation. It advises one to make the wifi password protected and to ensure encrypted signal for a wireless security system. Actually, can it reduce hacking? Any tips on installing a hack-proof security system? Any drawbacks? Anyone who has experience using them? Please share your valuable suggestion.
Thanks in advance

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