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As wireless networks increase in pervasiveness and popularity, it is becoming more important to have an effective intrusion detection and response solution. Wireless ad hoc networks are particularly vulnerable to denial of service attacks (DoS) due to their open decentralized architecture, highly dynamic topology and shared wireless medium in which they exist. One of the primary concerns with respect to ad hoc networks is to provide secure communication among mobile nodes in a hostile environment. In this paper, we propose a novel intrusion detection and response system called Routeguard. Routeguard employs a smart and smooth architecture in order to effectively discover malicious nodes and then proceeds to protect the network. The presented intrusion detection scheme produces a more natural system, which is more capable of dealing with malicious or suspected nodes. Simulation results demonstrate that this scheme improves network throughput by smartly classifying the nodes into different categories depending on their current actions and previous history.