I found a great article that describes how email works in pretty simple terms:
http://www.howtogeek.com/56002/htg-exp
Here are a few of the email attack methods hackers can use to obtain information:
Browsing- When an attacker is looking for important data but does not know what format it is in.
Sniffing - Also known as a network analyzer. When used in the wrong way, they can capture user names and passwords, but the good guy usually uses them to diagnose network problems.
Session Hijacking - Using a different IP address from their own in order to take over a session between two computers. They then spy on the connection to see if it is worthwhile to place themselves in the middle of communication between the two machines.
Loki- Utilizes ICMP to enable an attacker to to covertly communicate with another system.
Password Cracking - Using software to guess static passwords, and gain access to confidential information.
Backdoor- program that allows attackers to login, and then come back at a later date without having to supply the appropriate credentials to gain access again.
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