IP spoofing involves modifying packet headers to disguise a hacker's identity by using a spoofed IP address. There are several types of attacks that use IP spoofing, including blind spoofing where the attacker is not on the same subnet and man-in-the-middle attacks where the hacker intercepts communications. While IP spoofing has been discussed since the 1980s, recent studies found over 30,000 spoofing attacks per day. Preventing IP spoofing requires techniques like validating source IP addresses, filtering spoofed addresses, and encrypting trusted network communications.