Vulnerability to Denial of Service
By using a spoofed IP address and repeatedly sending SYN packets attackers can cause the server to consume large amounts of resources keeping track of the bogus connections. This is known as a SYN flood attack. Proposed solutions to this problem include SYN cookies and Cryptographic puzzles.
Connection hijacking
An attacker who is able to eavesdrop a TCP session and redirect packets can hijack a TCP connection. To do so, the attacker learns the sequence number from the ongoing communication and forges a false packet that looks like the next packet in the stream. Such a simple hijack can result in one packet being erroneously accepted at one end. When the receiving host acknowledges the extra packet to the other side of the connection, synchronization is lost. Hijacking might be combined with ARP or routing attacks that allow taking control of the packet flow, so as to get permanent control of the hijacked TCP connection.
Impersonating a different IP address was possible prior to RFC 1948, when the initial sequence number was easily guessable. That allowed an attacker to blindly send a sequence of packets that the receiver would believe to come from a different IP address, without the need to deploy ARP or routing attacks: it is enough to ensure that the legitimate host of the impersonated IP address is down, or bring it to that condition using denial of service attacks.
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