Cyberattack cripples Iran's financial infrastructure amid escalating conflict

During the recent conflict between Israel and Iran, Israel-linked cyber operatives executed a significant cyberattack on the financial infrastructure of Iran. The attack specifically targeted Bank Sepah, which is the oldest state-owned bank in Iran and closely linked to the Islamic Revolutionary Guard Corps. The pro-Israel hacker group known as Predatory Sparrow was responsible for this unprecedented breach, which resulted in the complete loss of data from the banking institution. This led to widespread disruptions in ATM services, online banking, and fuel distribution across the country, ultimately halting salary and pension payments for military personnel associated with the IRGC. As a consequence, bank branches were forced to close, and customers found themselves locked out of their accounts, creating chaos within the banking sector. Simultaneously, the Iranian rial experienced a sharp decline in value, losing approximately 12% post-attack, and the Tehran Stock Exchange suffered a significant crash. In response, Iran’s cyber directorate took measures to limit the social media capabilities of government officials, indicating the severity of the attack's ramifications. Analysts suggest that this cyber offensive represents a shift in strategy for the Israeli Defense Forces, moving from classic cyber espionage towards a more destructive form of economic warfare aimed at destabilizing Iran's economy and military logistics in conjunction with airstrikes on Tehran. The attack is seen as a crucial aspect of a multi-domain military operation underscoring the intricate connections between cyber warfare and traditional military strategies.