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I understand that 777 gives full rights to everyone, but how does it let people hack into your system? How can we make sure the file or folder is secure?
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The way they will do is that they may connect to your webserver through the openings port probably *I never done it* (this is just my assumption) and then they use whatever editor on their shell program to open the file that you chmod 777. Because when you chmod a file to 777, that means the rights to the user is even be able to write, read, and execute.