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What the hacker does with their knowledge of systems within the definition of
the law is what defines them as a hacker vs a cracker. It's then safe to say
that all crackers are hackers, but not all hackers are crackers. This is an
important distinction.
The term cracker and hacker are used interchangeably (albeit incorrectly)
largely due to the ignorance of the general populace, especially the media.
In Short
A hacker is a person who is very proficient and experienced in how computers
work.
Cracking is hacking with criminal intent.
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