A simple fix and a way to block unwanted intruders at the IP level BEFORE they get a chance to start banging away at password checks is to edit your /etc/hosts.allow to something like:
sshd:192.168.1. #allows 192.168.1.0-255
sshd:xxx.xxx.xxx.xxx #some other addr
sshd:xxx.xxx.xxx.xxx #another allowed addr
all:all:deny #deny everyone else
That will deny ssh connection attempts from all unwanted IP's (although you will still log that it was blocked which is good)
You also want to add the following line to /etc/hosts.deny
all:all
this blocks all other services:IP addr's not listed in hosts.allow.
There are many other ways to harden your box from outside attempts but this is a quick, easy, and functional one to get you started.
cheers