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In this example, the default gateway uses the IP address 192.168.4.1, which is resolved into a MAC address with ARP in the usual way. The destination IP address remains 192.168.12.3, but the next-hop MAC address is that of the gateway, rather than of the ultimate destination.
This also means an attacker can silently capture and decrypt others' packets if a WPA-protected access point is provided free of charge at a public place, because its password is usually shared to anyone in that place. In other words, WPA only protects from attackers who do not have access to the password.