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What is SQL injection?

Can someone explain SQL injection? How does it cause vulnerabilities? Where exactly is the point where SQL is injected?

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SQL injection is a code injection technique that exploits a security vulnerability occurring in the database layer of an application (like queries). The vulnerability is present when user input is either incorrectly filtered for string literal escape characters embedded in SQL statements or user input is not strongly typed and thereby unexpectedly executed. It happens from using poorly designed query language interpreters.

http://en.wikipedia.org/wiki/SQL_Injection