Error conditions and other exceptional circumstances.
Confusion over which part of the program is responsible for freeing the memory.
In this scenario, the memory in question is allocated to another pointer validly at some point after it has been freed. The original pointer to the freed memory is used again and points to somewhere within the new allocation. As the data is changed, it corrupts the validly used memory; this induces undefined behavior in the process.
If the newly allocated data happens to hold a class, in C++ for example, various function pointers may be scattered within the heap data. If one of these function pointers is overwritten with an address to valid shellcode, execution of arbitrary code can be achieved.