Cham hack
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Cham hacks, or chams for short, are a very common form of cheating in multiplayer first-person shooter, which generally replace player models with brightly colored skins, often in neon red/yellow and blue/green colors. Chams are nearly always coupled with wallhacks, giving the user a very large advantage over non-hack users, especially in games in which camouflage on player models is negated by the extremely bright colors or when the hack user comes to walls through which he or she may shoot.
Battlefield 2 is one of the more popular games to use chamhacks in, as at long distances even non-camouflaged models may be very difficult to see, and stationary camouflaged snipers are nearly invisible, meaning that most players will have difficulty seeing them and returning fire. However, with chams this camouflage is made completely useless, and a stationary sniper actually becomes one of the easiest targets for the hack user. The only defense against cham users is to take a PunkBuster screenshot of the offender, and look for signs of the hack.
[edit] Acceptability
In games such as Quake, Cham hacks are known as brightskins, or brights for short, however unlike the above mentioned games, they are generally well known and accepted within the games, especially Quake 2 and TDM, of course - wallhacks are still strictly prohibited, as are model hacks, aimbots and other such cheats.
In Quake III CPMA, there are even commands to force enemy models with bright colours, and in Quake IV, a patch supplies "Pro" skins, which are simply brightskins.