E*Trade Ignores Private Security Warning, But Public Hullaballoo Gets Response
P. Catz - October 27, 2000

Event Summary

In late August computer programmer Jeff Baker discovered scenarios in which cybercriminals could compromise the password security of the users of E*Trade, an online securities trading portal. Mr. Baker reported these scenarios to the Director of System Security, and Manager of Security Threat Analysis at E*Trade in an exchange of e-mails that took place on August 21st, 22nd, and 23rd. The E*Trade management team acknowledged the vulnerabilities, but were unable to offer a timely solution. E*Trade's Security Director Clifford Reeser later called the problem 'minor,' and indeed there were no reports of any customer's security having actually been violated...