The long-standing conflict between Israel and Iran has intensified in the digital realm, marked by a surge in cyberattacks targeting financial institutions and critical infrastructure. The escalation reflects a decades-old rivalry between the two nations, both known for advanced cyber capabilities, a Bloomberg report noted.
On Tuesday, a group calling itself “Predatory Sparrow,” claiming to be pro-Israel, said it had launched a major cyberattack on an Iranian bank. Iran’s state-run IRIB News also reported a “full-scale cyberattack” on the country’s infrastructure. By Wednesday, Predatory Sparrow claimed another breach, this time targeting Iranian cryptocurrency exchange Nobitex.
Iran’s Fars News Agency, affiliated with the Islamic Revolutionary Guard Corps, reported over 6,700 distributed denial-of-service (DDoS) attacks in three days. These attacks, which flood servers with traffic to disable online services, led to temporary internet restrictions. Iranian citizens reported major connectivity problems and ATM outages. It remains unclear if the issues stemmed from attacks or government countermeasures.
The incidents signal a broader cyber war. Israel and Iran have clashed digitally for over 20 years. Google’s Threat Analysis Group attributes numerous cyberattacks on Israel to Iran and its allies, including Hamas. These include phishing, data theft, and information operations.
Israel has been linked to some of the most sophisticated cyberattacks. A key example is “Stuxnet,” discovered in 2010 and attributed to the US and Israel, which sabotaged Iranian nuclear infrastructure.
Predatory Sparrow, active since at least 2021, has previously attacked Iran’s railway system, fuel stations, a steel mill, and leaked the alleged phone number of Supreme Leader Ali Khamenei. The group presents itself as a hacktivist entity, but private-sector analysts suggest possible ties to the Israeli government. Neither Israel’s Ministry of Foreign Affairs nor the group has commented on the matter.
Cybersecurity experts say these attacks are often psychological in nature. John Hultquist of Google’s Threat Intelligence Group noted, “Most disruptive and destructive cyberattacks are about influence and psychological impact rather than practical impact.”
Predatory Sparrow claimed on social media it had “destroyed the data” of Bank Sepah, accusing it of bypassing sanctions. A day later, it said Nobitex was breached. Blockchain researcher ZachXBT cited suspicious outflows exceeding $81 million. Nobitex confirmed “unauthorized access” but assured users that funds would be restored.
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