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a white hat hacker is a white hat because he/she doesnt destroy/exploit systems he/she has broken into. and instead somehow notifies the admin of the cracked systems security holes and flaws.

the black hat on the other hand is a hacking into systems (usually) only to destroy something or to steal information like bank information.

and the grey hat is just in between them in some way maybe not always leaving a note to the admin telling about the flaws in the system or the loop hole he/she used. or maybe just peeking abit in the logs.

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