Iran-Israel conflict spreads to hacks on banks, crypto
The attacks tied to Israel herald a new front in the escalating Middle East conflict – but the countries' cyber rivalry spans two decades. PHOTO: ARASH KHAMOOSHI/NYTIMES
The conflict between Israel and Iran is spilling over into the digital world, inflaming a decades-long campaign of hacks and espionage between two nations renowned for their cyber prowess.
On June 17, a pro-Israel hacking group claimed responsibility for a disruptive cyberattack against a major Iranian bank, and Iran's state-run IRIB News reported that Israel had launched a full-scale cyberattack on the country's critical infrastructure.
Then on June 18, the pro-Israel hackers announced a new breach targeting an Iranian crypto exchange.
Iran's Fars News Agency, affiliated with the Islamic Revolutionary Guard Corps, reported that the country has endured more than 6,700 distributed denial-of-service attacks over the past three days.
It said temporary internet restrictions were implemented as a measure to blunt the impact of large-scale cyberattacks. DDoS attacks overwhelm servers with artificial traffic, disrupting access to websites and online services.
Iranians were reporting widespread issues accessing the internet on the night of June 17, with many virtual private networks, or VPNs, rendered unusable.
Customers also reported problems with banking services, including banking machines and online systems. It is not clear if the problems were the result of cyberattacks or efforts by the government to minimise their impact.
The attacks tied to Israel herald a new front in the escalating Middle East conflict – but the countries' cyber rivalry spans two decades.
Iran and its regional proxies, such as Hamas, have attempted a wide variety of cyberattacks against Israel in recent years – including information operations, data destruction attacks and phishing campaigns – with mixed results, according to data compiled by Google's Threat Analysis Group.
Israel is widely considered one of the world's most advanced and capable countries in launching cyberattacks.
An operation called Stuxnet, uncovered in 2010 and tied to the US and Israel, sabotaged hardware believed to be responsible for Iran's nuclear weapons development.
One of the most advanced and impactful hacking operations in history, Stuxnet demonstrates the longstanding centrality of cyber to the Israel-Iran conflict.
Predatory Sparrow's claims that it hacked Iran's Bank Sepah and Iranian crypto exchange Nobitex are the latest manifestation of that digital tit-for-tat.
The group is known for launching significant cyberattacks against Iran over the last five years, while maintaining the image of a 'hacktivist' organisation.
Many cybersecurity experts within the private industry have suggested Predatory Sparrow is linked to the Israeli government.
Israel's Ministry for Foreign Affairs did not respond to a request for comment. Predatory Sparrow could not be reached for comment.
'Most disruptive and destructive cyberattacks are about influence and psychological impact rather than practical impact,' said Mr John Hultquist, chief analyst at Google's Threat Intelligence Group.
'That's why a lot of them involve an effort to publicize the incidents, which oftentimes includes a fictitious hacktivist front.'
Predatory Sparrow posted on Telegram and X at 4am on June 17 New York time (4pm Singapore time) that it had successfully 'destroyed the data' of Bank Sepah, claiming that the institution was used to circumvent international sanctions.
On June 18, the group said it had also targeted Nobitex in a separate attack. Prominent crypto sleuth ZachXBT noted in a post on Telegram that he had observed 'suspicious outflows' from Nobitex and said that an attacker appeared to have stolen more than US$81 million (S$104 million) in cryptocurrencies from the Tehran-based exchange.
Bank Sepah could not be reached for comment.
Nobitex said in a statement posted on X that it had detected signs of unauthorised access 'specifically affecting internal communication systems and a segment of the hot wallet environment'.
The platform said users' wallet balances would be restored 'with no loss or discrepancy'.
Predatory Sparrow has been active since 2021. The group appeared in public when they took credit for destroying data in Iran's national railway system, resulting in delays around the country.
Iran's Ministry of Roads and Urban Development were hit by hackers around the same time with the same tool designed to destroy computer files.
In other attacks, Predatory Sparrow was blamed for targeting point-of-sale systems at Iranian gas stations, causing a malfunction at Iran's Khouzestan steel mill that caused molten steel to spill onto the steel plant's floor, and publicising the alleged phone number of Iranian Supreme Leader Ali Khamenei.
The attackers are unique in that there is relatively little technical information about their hacks compared to similar campaigns, according to security experts.
Predatory Sparrow's efforts tend to destroy the technical forensic evidence that analysts need to understand it.
Often, the group has used social media to promote its activity, a tactic that experts say is proof that Predatory Sparrow aims to have a psychological impact.
The hack against Bank Sepah came with its own publicity push, with Predatory Sparrow warning that 'this is what happens to institutions dedicated to maintaining the dictator's terrorist fantasies'. BLOOMBERG
Join ST's Telegram channel and get the latest breaking news delivered to you.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Straits Times
43 minutes ago
- Straits Times
Putin says Russia has told Israel there's no evidence Iran wants nuclear weapons: Sky News Arabia
Russia is ready to support Iran in developing a peaceful nuclear programme Russia's President Vladimir Putin says. PHOTO: REUTERS Putin says Russia has told Israel there's no evidence Iran wants nuclear weapons: Sky News Arabia - Russia has repeatedly told Israel that there is no evidence Iran is aiming to get nuclear weapons, Sky News Arabia on June 21 quoted Russian President Vladimir Putin as saying in an interview. 'Russia, as well as the IAEA (International Atomic Energy Agency), has never had any evidence that Iran is preparing to obtain nuclear weapons, as we have repeatedly put the Israeli leadership on notice,' Sky News Arabia quoted Mr Putin as saying. Russia is ready to support Iran in developing a peaceful nuclear programme, Mr Putin was quoted as saying, adding that Iran has the right to do so. Speaking at an economic forum in St. Petersburg on June 2 0, Mr Putin said Russia was sharing its ideas on how to stop the bloodshed in the Iran-Israel conflict with both sides. He did not give details of those ideas. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
an hour ago
- Straits Times
Putin says Russia has told Israel there's no evidence Iran wants nuclear weapons, Sky News Arabia reports
FILE PHOTO: Russia's President Vladimir Putin applauds during a plenary session of the St. Petersburg International Economic Forum (SPIEF) in Saint Petersburg, Russia, June 20, 2025. REUTERS/Anton Vaganov/File Photo Putin says Russia has told Israel there's no evidence Iran wants nuclear weapons, Sky News Arabia reports MOSCOW - Russia has repeatedly told Israel that there is no evidence Iran is aiming to get nuclear weapons, Sky News Arabia on Saturday quoted Russian President Vladimir Putin as saying in an interview. "Russia, as well as the IAEA (International Atomic Energy Agency), has never had any evidence that Iran is preparing to obtain nuclear weapons, as we have repeatedly put the Israeli leadership on notice," Sky News Arabia quoted Putin as saying. Russia is ready to support Iran in developing a peaceful nuclear programme, Putin was quoted as saying, adding that Iran has the right to do so. Speaking at an economic forum in St. Petersburg on Friday, Putin said Russia was sharing its ideas on how to stop the bloodshed in the Iran-Israel conflict with both sides. He did not give details of those ideas. REUTERS Join ST's Telegram channel and get the latest breaking news delivered to you.
Straits Times
3 hours ago
- Straits Times
22 arrested over links to Israeli spy services since start of conflict: Iranian media
22 arrested over links to Israeli spy services since start of conflict: Iranian media TEHRAN - Police in Iran's Qom province said on June 21 that 22 people 'linked to Israeli spy services' had been arrested since June 13, Fars news agency reported. '22 people were identified and arrested on charges of being linked to the Zionist regime's spy services, disturbing public opinion and supporting the criminal regime,' the agency said, citing the head of police intelligence in Iran's Qom province. It came after Iranian police announced the arrest on June 19 of 24 people accused of spying for Israel and of seeking to tarnish the country's image, according to a statement carried by Tasnim news agency. A European national was also arrested for spying, Tasnim reported on June 20 , without giving their nationality or the date of the arrest. Iran regularly announces arrests of suspected spies. Several have been executed in recent weeks. Norway-based NGO Iran Human Rights said at least 223 people have been arrested nationwide on charges related to collaboration with Israel, cautioning that the actual figure was likely higher. AFP Join ST's Telegram channel and get the latest breaking news delivered to you.
