We are seeing the issue described here - http://archives.neohapsis.com/archives/bugtraq/2002-10/0266.html
In brief, we need to drop bogus packets, such as with SYN+FIN flags set. I can drop this particular packet by adding rule-
iptables -A INPUT -p tcp --tcp-flags SYN,FIN SYN,FIN -j DROP
Now there could be many more combination of flags. So should I add all of them or is there a better way to do it?