[ by Melanie Gretchen ] E*Trade Australia was hit by hackers.  The Australia and New Zealand Banking Group admitted that its online brokerage unit was the subject of a so-called "distributed denial of service" attack, after initially announcing just problems with its technology systems.

In a "Distributed Denial of Service" attack, hackers flood computer servers with requests for information, slowing them down or, in severe cases, completely arresting their activity.

What E*Trade Had to Say. An ANZ spokesperson said staffer immediately responded to minimize disruption and ensure that data remained secure.  While this was being done, customers had difficulty accessing the firm's web site from overseas, where the attack originated.  Telephones remained open to accept trade orders.  ETFC customers in the U.S., the UK, China, Indonesia, Japan, Thailand, and UAE were among those affected. What Customers Had to Say. Customers were not very pleased.  Some threatened to abandon E*Trade, expressing frustration in online forums that the firm did not effectively communicate what was wrong, when it expected to resolve the problems, or whether customer accounts and customer sensitive data were safe.

"The complete disregard for their customers and arrange is exactly why [hacker] groups like Anonymous attack institutions like this."

Ouch! Looks like E*Trade needs to brush up on its public relations practices. [Australian Financial Review, 1/5/12]