Hacker

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A hacker is merely someone who is interested in the more technical aspects of computing. The media has made the term closely connected with criminal activity.

Hackers are merely individuals who like to find out how things work. Crackers on the other hand, often use their knowledge for breaking encryption, DRM, etc.

There are many varieties of hacker:

(taken from Wikipedia)

White Hat

A white hat hacker breaks security for non-malicious reasons, for instance testing their own security system. This type of hacker enjoys learning and working with computer systems, and consequently gains a deeper understanding of the subject. Such people normally go on to use their hacking skills in legitimate ways, such as becoming security consultants. The word 'hacker' originally included people like this, although a hacker may not be someone into security.

Grey Hat

A grey hatted hacker is a hacker of ambiguous ethics and/or borderline legality, often frankly admitted.

Blue Hat

A blue hat hacker is someone outside computer security consulting firms that are used to bug test a system prior to its launch, looking for exploits so they can be closed. Microsoft also uses the term BlueHat to represent a series of security briefing events.

Black Hat

A black hat hacker, sometimes called "cracker", is someone who breaks computer security without authorization or uses technology (usually a computer, phone system or network) for vandalism, credit card fraud, identity theft, piracy, or other types of illegal activity.