Electric power systems have evolved over the past century to the largest and most complex cyber‐physical systems. With the development of smart grid, tighter integration of communication and information technologies makes this vital critical infrastructure more vulnerable to cyber‐security attacks. As a key technology in smart grid, state estimation plays an important role in maintaining reliable system operation and control. False data injection attack, one type of cyber‐attacks against state estimation through a Supervisory Control and Data Acquisition (SCADA) system, has recently attracted intensive research interests. This article reviews the impact of false data injection attacks on both the physical power system operation and the power market operation. This article also reviews three popular protection strategies against false data injection attacks.