How can I prevent my website from being hacked?

It's a dangerous world out there. Tens of thousands of websites are hacked daily. There are measures you can take and practices employed to prevent yours from being hacked.

Generally speaking, most websites are hacked because of one of the following:
Running older, out of date, exploitable software.
Full write permissions on the wrong areas (777), which are rarely needed. 755 for executables and 644 for all others is suggested.
Using passwords that are not secure, easy to crack.
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