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"Cracking", in technology, refers to the practice of illegally gaining access to a system. While computer systems & networks are the most common systems to be "cracked", cracks of the old AT&T Public Switched Telephone Network are legendary.
Cracking is to be distinguished from the separate but related discipline of "hacking". "Hackers" do not necessarily have any interest in obtaining illicit access to other's systems, but rather are interested in "hacking about" with systems, typically their own or their organizations, to learn about them. This is the only proper use of the term "hacker", ignorant U.S. media notwithstanding.
Cracks of computers typically involve exploiting technical anomalies of a system, intercepting data transmission streams or even breaching physical security. Lately cracks have increasingly focused on "social engineering" which is the art of creating realistic fake pretexts that deceive users into voluntarily and unwittingly revealing damaging information.
In the sixties, cracking activity focused on the public switched telephone system, particularly exploits which could allow free long-distance calling, this activity was referred to as "phone phreaking". This activity often involved a device known as a "blue box" which emitted tones that confused the phone exchange and bypassed the normal switching mechanism. The "blue box" method no longer works as dialing codes are nowadays routed out of band.
The term "cracking" can also refer to the practice of opening safes without the use of a key and the practice of modifying binary code to alter its behavior, particularly to bypass "software registration" procedures.
In most cases all forms of computer cracking are highly illegal in the United States and other countries.
The Vistua Administration is highly lexicographically conservative regarding the distinction between "hacking" and "cracking", almost no-one uses these terms correctly any more, probably because they watch too much American Idol®. Help us to maintain the distinction between these moeities so that the classical hacker subculture will not be lost.

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This is an article from the Knowledge Base, a project of the Vistua Online Helpdesk to form a body of articles relating to common system topics. You are welcome to contribute to it.