Iran Pays $Mulitmillion Ransom To Protect Its Banks

A massive cyber attack that hit Iran recently threatened the stability of its banking system and forced the country's regime to agree to a ransom deal of millions of dollars, according to official sources. Analysis say this attack becomes one of the largest breaches that the country has faced in its cyber history.

A group known as IRLeaks, which has a history of hacking Iranian companies, was likely behind the breach, the officials said. 

The hackers are said to have initially threatened to sell the data they collected, which included the personal account and credit card data of millions of Iranians, on the Dark Web unless they received $10 million in crypto-currency, but later settled on a smaller sum.  

Iran’s highly centralised religious regime is understood to have pushed for the ransom to be paid, fearing that word of the data theft would destabilise the country’s weak financial system, which is under intense strain amid the international sanctions the country faces.

Iran has not acknowledged the breach, which forced banks to shut down cash machines across the country in August.Though the attack was reported at the time by Iran International, an opposition news outlet, neither the suspected hackers nor the ransom demands were disclosed.  Iran’s supreme leader, Ayatollah Ali Khamenei, delivered a cryptic message in the wake of the attack, blaming the US and Israel for “spreading fear among our people,” without acknowledging the country’s banks were under assault. 

“The enemy’s goal is to spread psychological warfare to push us into political and economic retreat and achieve its objectives,” the Ayatollah said.

That accusation seemed plausible given the broader tensions between Israel, the US and Iran. While Tehran blames Israel for the recent assassination of a senior Hamas leader in Iran, Washington accuses Iran of trying to influence the US election by hacking into Donald Trump’s campaign operation. 

Online extortion in Iran is nothing new.  In December, IRLeaks claimed to have stolen the customer data of nearly two dozen Iranian insurance companies, and of hacking into Snapp Food, a delivery service. Though the companies agreed to pay ransom to IRLeaks, it was far less than the group received from the banking hack.

IRleaks entered the banks’ servers via a company called Tosan, which provides data and other digital services to Iran’s financial sector. Using Tosan as a Trojan horse, the hackers appear to have exfiltratd data from both private banks and Iran’s central bank. Of Iran’s 29 active credit institutions, as many as 20 were hit, said the officials, who requested anonymity in order to reveal sensitive information. Among the affected banks were the Bank of Industry and Mines, Mehr Interest-Free Bank, Post Bank of Iran, Iran Zamin Bank, Sarmayeh Bank, Iran-Venezuela Bi-National Bank, Bank Day, Bank-e Shahr, Eghtesad Novin Bank, and Saman, which also has branches in Italy and Germany.

The government ultimately insisted that Tosan to pay the IRLeaks ransom, a personal familiar with the events said.  What isn’t clear is whether the hackers used Tosan to hit other targets in Iran. The firm has a wide customer base, including government entities beyond the central bank.

Iran’s financial sector has long been the country’s Achilles heel and its banks are undercapitalised and overburdened with  by loans they are forced to make to the government, which counts as the sector’s biggest borrower. In February, Iran’s central bank chief said that eight of the country’s banks were facing severe difficulties and would either be merged or dissolved.

 Iranian citizens have little choice but to continue to keep their money in their local banks and rely on them to handle their daily transactions in cash, and  with an inflation rate of nearly 40 percent, Iranians have shown little appetite for  digital payments.

The banking system’s overall fragility leaves individual lenders exposed to sudden bank runs. That danger might explain why the regime refused to publicly acknowledge the attack and pressured Tosan to pay the hackers.

AAAwsat   |    Iran International  |    Politico   |   Scope24   |   Cybersecurity-Insiders    |   Niksun / LinkedIn

Image: Ideogram

You Might Also Read: 

Combatting Zero-Day Exploits In Financial Services:


If you like this website and use the comprehensive 6,500-plus service supplier Directory, you can get unrestricted access, including the exclusive in-depth Directors Report series, by signing up for a Premium Subscription.

  • Individual £5 per month or £50 per year. Sign Up
  • Multi-User, Corporate & Library Accounts Available on Request

Cyber Security Intelligence: Captured Organised & Accessible


 

 

 

« US Healthcare Firm Loses 22GB of Data
New Exploits & Examples Of Online Fraud »

CyberSecurity Jobsite
Perimeter 81

Directory of Suppliers

CSI Consulting Services

CSI Consulting Services

Get Advice From The Experts: * Training * Penetration Testing * Data Governance * GDPR Compliance. Connecting you to the best in the business.

ON-DEMAND WEBINAR: What Is A Next-Generation Firewall (and why does it matter)?

ON-DEMAND WEBINAR: What Is A Next-Generation Firewall (and why does it matter)?

Watch this webinar to hear security experts from Amazon Web Services (AWS) and SANS break down the myths and realities of what an NGFW is, how to use one, and what it can do for your security posture.

Alvacomm

Alvacomm

Alvacomm offers holistic VIP cybersecurity services, providing comprehensive protection against cyber threats. Our solutions include risk assessment, threat detection, incident response.

North Infosec Testing (North IT)

North Infosec Testing (North IT)

North IT (North Infosec Testing) are an award-winning provider of web, software, and application penetration testing.

Cyber Security Supplier Directory

Cyber Security Supplier Directory

Our Supplier Directory lists 6,000+ specialist cyber security service providers in 128 countries worldwide. IS YOUR ORGANISATION LISTED?

Veeam

Veeam

Veeam is the leader in intelligent data management for the Hyper-Available Enterprise.

Secusmart

Secusmart

Secusmart provide highly secure and encrypted speech and data communication solutions.

Muninn

Muninn

At Muninn (aka Wehowsky), we specialize in mitigating potential risks within your network, providing one of the leading network detection and response (NDR) solutions on the market.

Secret Double Octopus

Secret Double Octopus

Secret Double Octopus offers the world’s only keyless multi-shield authentication technology for users and things.

AAROH

AAROH

AAROH helps customers in Government, Law Enforcement, and Enterprises to identify, prevent, detect, resolve and protect from threats, crimes, breaches & fraud.

Mitre

Mitre

At Mitre we work across government to tackle challenges to the safety, stability, and well-being of our nation. Areas of expertise include Cybersecurity.

EUROCONTROL

EUROCONTROL

EUROCONTROL is a pan-European, civil-military organisation dedicated to supporting European aviation. We help our stakeholders protect themselves against cyber threats.

Hut Six Security

Hut Six Security

Train, test and track your Information Security culture through information security awareness training and customised phishing simulation campaigns.

ISA Global Cybersecurity Alliance (ISAGCA)

ISA Global Cybersecurity Alliance (ISAGCA)

Objectives of the ISA Global Cybersecurity Alliance include the acceleration and expansion of standards, certification, education programs, advocacy efforts, and thought leadership.

Rhino Security Labs

Rhino Security Labs

Rhino Security Labs is a top penetration testing and security assessment firm, with a focus on cloud pentesting, network pentesting, web application pentesting, and phishing.

Cutting Edge Technologies (CE Tech)

Cutting Edge Technologies (CE Tech)

CE Tech is a Next Generation Technology Partner providing advanced technology infrastructure solutions through partnerships with leading technology providers.

Falcongaze

Falcongaze

Falcongaze SecureTower is a comprehensive DLP solution for the protection of business against internal threats.

PA Consulting

PA Consulting

PA Consulting Group is a consultancy that specialises in strategy, technology and innovation. Our cyber security experts work with you to spot digital and technology security risks and reduce them.

RMRF Tech

RMRF Tech

RMRF is a team of cybersecurity engineers and penetration testers which specializes in the development of solutions for early cyber threat detection and prevention.

ThreatDefence

ThreatDefence

ThreatDefence provides innovative SIEM, SOC-as-a-Service, and proactive cyber defence solutions to MSP’s and Enterprises.

Lightpath

Lightpath

Lightpath is revolutionizing how organizations connect to their digital destinations by combining our next-generation network with our next-generation customer service.