Iran pays ransom to halt cyberattack on banks

A significant cyberattack targeted Iran's banking system last month, leading to a ransom payment of at least $3 million to halt the breach. The attack, attributed to a group known as IRLeaks, threatened to expose sensitive personal account and credit card information from up to 20 banks, raising alarms about the stability of Iran's financial sector. The hackers initially demanded $10 million in cryptocurrency but settled for a lower amount after negotiations. The Iranian regime, concerned about the potential fallout from the data theft, pressured an Iranian firm to pay the ransom to prevent the release of the data on the dark web. This incident highlights the vulnerabilities within Iran's banking infrastructure, which is already strained by international sanctions and economic challenges. The central bank had previously indicated that several banks were facing severe difficulties, with some potentially facing mergers or closures. Despite the regime's attempts to downplay the situation, the attack has raised questions about the security of financial institutions in Iran. The hackers gained access through Tosan, a company providing digital services to the banking sector, indicating a sophisticated method of infiltration. The incident underscores the ongoing threat of cyberattacks in the region, particularly as tensions between Iran, the U.S., and Israel continue to escalate. In the aftermath, the Iranian public remains reliant on digital banking despite high inflation rates, which have reached nearly 40 percent. The incident serves as a reminder of the precarious state of Iran's economy and the potential for further cyber threats that could destabilize the already fragile financial system.