Man in the Middle
A hacker can exploit ARP Cache Poisoning to intercept network traffic between two devices in your network. For instance, let's say the hacker wants to see all the traffic between your computer, 192.168.0.12, and your Internet router, 192.168.0.1. The hacker begins by sending a malicious ARP "reply" (for which there was no previous request) to your router, associating his computer's MAC address with 192.168.0.12 (see Diagram 3).
Now your router thinks the hacker's computer is your computer.
Next, the hacker sends a malicious ARP reply to your computer, associating his MAC Address with 192.168.0.1 (see Diagram 4).
Now your machine thinks the hacker's computer is your router.
Finally, the hacker turns on an operating system feature called IP forwarding. This feature enables the hacker's machine to forward any network traffic it receives from your computer to the router (shown in Diagram 5).
Now, whenever you try to go to the Internet, your computer sends the network traffic to the hacker's machine, which it then forwards to the real router. Since the hacker is still forwarding your traffic to the Internet router, you remain unaware that he is intercepting all your network traffic and perhaps also sniffing your clear text passwords or hijacking your secured Internet sessions.