Iran Pays Millions in Ransom to End Cyberattack on Banks

Iranians at a bank branch in Tehran (IRNA)
Iranians at a bank branch in Tehran (IRNA)
TT

Iran Pays Millions in Ransom to End Cyberattack on Banks

Iranians at a bank branch in Tehran (IRNA)
Iranians at a bank branch in Tehran (IRNA)

A massive cyberattack that hit Iran last month threatened the stability of its banking system and forced the country's regime to agree to a ransom deal of millions of dollars, POLITICO reported on Thursday.

The newspaper said an Iranian firm paid at least $3 million in ransom last month to stop an anonymous group of hackers from releasing individual account data from as many as 20 domestic banks in what appears to be the worst cyberattack the country has seen, quoting industry analysts and western officials briefed on the matter.

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 cryptocurrency, but later settled on a smaller sum.

Iran’s authoritarian regime pushed for a deal, fearing that word of the data theft would destabilize the country’s already-wobbly financial system, which is under intense strain amid the international sanctions the country faces, the officials said.

Iran never acknowledged the mid-August breach, which forced banks to shut down cash machines across the country.

IRleaks entered the banks’ servers via a company called Tosan, which provides data and other digital services to Iran’s financial sector, the officials said.

Using Tosan, the hackers appear to have siphoned data from both private banks and Iran’s central bank. Of Iran’s 29 active credit institutions, as many as 20 were hit, including the Bank of Industry and Mines and the Post Bank of Iran.

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 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.

Despite the growing tensions between Iran and both the US and Israel, people familiar with the Iranian banking hack told POLITICO that IRLeaks is affiliated with neither the US nor Israel.



Larijani Calls Trump, Netanyahu ‘Main Killers of People of Iran’ as Russia Slams Threats

Protesters participate in a demonstration supporting protesters in Iran, in front of the US Consulate, Milan, Italy, Tuesday, Jan. 13, 2026. (AP)
Protesters participate in a demonstration supporting protesters in Iran, in front of the US Consulate, Milan, Italy, Tuesday, Jan. 13, 2026. (AP)
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Larijani Calls Trump, Netanyahu ‘Main Killers of People of Iran’ as Russia Slams Threats

Protesters participate in a demonstration supporting protesters in Iran, in front of the US Consulate, Milan, Italy, Tuesday, Jan. 13, 2026. (AP)
Protesters participate in a demonstration supporting protesters in Iran, in front of the US Consulate, Milan, Italy, Tuesday, Jan. 13, 2026. (AP)

A senior Iranian official responded Tuesday to US President Donald Trump’s latest threat to intervene in deadly protests, saying that the US and Israel will be the ones responsible for the death of Iranian civilians.

Shortly after Trump’s social media post urging Iranians to “take over” government institutions, Ali Larijani, a former parliament speaker who serves as the secretary of Iran’s Supreme National Security Council, posted on X: “We declare the names of the main killers of the people of Iran: 1- Trump 2- Netanyahu.”

Russia’s Foreign Ministry called Trump's threats “categorically unacceptable.”

The ministry warned in a statement that any such strikes would have “disastrous consequences” for the situation in the Middle East and global security.

It also criticized what it called “brazen attempts to blackmail Iran’s foreign partners by raising trade tariffs.”

The statement noted that the protests in Iran had been triggered by social and economic problems resulting from Western sanctions.

It also denounced “hostile external forces” for trying to “exploit the resulting growing social tension to destabilize and destroy the Iranian state” and charged that “specially trained and armed provocateurs acting on instructions from abroad” sought to provoke violence.

The ministry voiced hope that the situation in Iran will gradually stabilize and advised Russian citizens in the country not to visit crowded places.


Satellite Internet Provider Starlink Now Offering Free Service Inside Iran

Protesters participate in a demonstration supporting protesters in Iran, in front of the US Consulate, Milan, Italy, Tuesday, Jan. 13, 2026. (AP)
Protesters participate in a demonstration supporting protesters in Iran, in front of the US Consulate, Milan, Italy, Tuesday, Jan. 13, 2026. (AP)
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Satellite Internet Provider Starlink Now Offering Free Service Inside Iran

Protesters participate in a demonstration supporting protesters in Iran, in front of the US Consulate, Milan, Italy, Tuesday, Jan. 13, 2026. (AP)
Protesters participate in a demonstration supporting protesters in Iran, in front of the US Consulate, Milan, Italy, Tuesday, Jan. 13, 2026. (AP)

The satellite internet provider Starlink now offers free service in Iran, activists said Wednesday.

Mehdi Yahyanejad, a Los Angeles-based activist who has helped get the units into Iran, told The Associated Press that the free service had started. Other activists also confirmed in messages online that the service was free.

Starlink has been the only way for Iranians to communicate with the outside world since authorities shut down the internet Thursday night as nationwide protests swelled and they began a bloody crackdown against demonstrators.

Starlink itself did not immediately acknowledge the decision.


Trump Warns of ‘Very Strong Action’ if Iran Hangs Protesters

 In this photo obtained by The Associated Press, Iranians attend an anti-government protest in Tehran, Iran, Friday, Jan. 9, 2026. (UGC via AP)
In this photo obtained by The Associated Press, Iranians attend an anti-government protest in Tehran, Iran, Friday, Jan. 9, 2026. (UGC via AP)
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Trump Warns of ‘Very Strong Action’ if Iran Hangs Protesters

 In this photo obtained by The Associated Press, Iranians attend an anti-government protest in Tehran, Iran, Friday, Jan. 9, 2026. (UGC via AP)
In this photo obtained by The Associated Press, Iranians attend an anti-government protest in Tehran, Iran, Friday, Jan. 9, 2026. (UGC via AP)

US President Donald Trump warned of unspecified "very strong action" if Iranian authorities go ahead with threatened hangings of some protesters, with Tehran calling American warnings a "pretext for military intervention".

International outrage has built over the crackdown that a rights group said has likely killed thousands during protests posing one of the biggest challenges yet to Iran's clerical leadership.

Iran's UN mission posted a statement on X, vowing that Washington's "playbook" would "fail again".

"US fantasies and policy toward Iran are rooted in regime change, with sanctions, threats, engineered unrest, and chaos serving as the modus operandi to manufacture a pretext for military intervention," the post said.

Iranian authorities have insisted they had regained control of the country after successive nights of mass protests nationwide since.

Rights groups accuse the government of fatally shooting protesters and masking the scale of the crackdown with an internet blackout that has now surpassed the five-day mark.

New videos on social media, with locations verified by AFP, showed bodies lined up in the Kahrizak morgue just south of the Iranian capital, with the corpses wrapped in black bags and distraught relatives searching for loved ones.

Trump -- who earlier told the protesters in Iran that "help is on its way" -- said Tuesday in a CBS News interview that the United States would act if Iran began hanging protesters.

Tehran prosecutors have said Iranian authorities would press capital charges of "moharebeh", or "waging war against God", against some suspects arrested over recent demonstrations.

"We will take very strong action if they do such a thing," said the American leader, who has repeatedly threatened Iran with military intervention.

"When they start killing thousands of people -- and now you're telling me about hanging. We'll see how that's going to work out for them," Trump said.

The US State Department on its Farsi language X account said 26-year-old protestor Erfan Soltani had been sentenced to be executed on Wednesday.

"Erfan is the first protester to be sentenced to death, but he won't be the last," the State Department said, adding more than 10,600 Iranians had been arrested.

Rights group Amnesty International called on Iran to immediately halt all executions, including Soltani's.

Trump urged on his Truth Social platform for Iranians to "KEEP PROTESTING", adding: "I have cancelled all meetings with Iranian Officials until the senseless killing of protesters STOPS. HELP IS ON ITS WAY."

It was not immediately clear what meetings he was referring to or what the nature of the help would be.

- 'Rising casualties' -

European nations also signaled their anger over the crackdown, with France, Germany and the United Kingdom among the countries that summoned their Iranian ambassadors, as did the European Union.

"The rising number of casualties in Iran is horrifying," said EU chief Ursula von der Leyen, vowing further sanctions against those responsible.

Norway-based NGO Iran Human Rights said it had confirmed 734 people killed during the protests, including nine minors, but warned the death toll was likely far higher.

"The real number of those killed is likely in the thousands," IHR's director Mahmood Amiry-Moghaddam said.

Iranian state media has said dozens of members of the security forces have been killed, with their funerals turning into large pro-government rallies.

Authorities in Tehran have announced a mass funeral ceremony in the capital on Wednesday for the "martyrs" of recent days.

Amir, an Iraqi computer scientist, returned to Baghdad on Monday and described dramatic scenes in Tehran.

"On Thursday night, my friends and I saw protesters in Tehran's Sarsabz neighborhood amid a heavy military presence. The police were firing rubber bullets," he told AFP in Iraq.

Reza Pahlavi, the US-based son of Iran's ousted shah, called on the military to stop suppressing protests.

"You are the national military of Iran, not the military of the Islamic Republic," he said in a statement.

- 'Serious challenge -

The government on Monday sought to regain control of the streets with mass nationwide rallies that supreme leader Ali Khamenei hailed as proof that the protest movement was defeated, calling them a "warning" to the United States.

In power since 1989 and now aged 86, Khamenei has faced significant challenges, most recently the 12-day war in June against Israel, which forced him to go into hiding.

Analysts have cautioned that it is premature to predict the immediate demise of the theocratic system, pointing to the repressive levers the leadership controls, including the Revolutionary Guard Corps, which is charged with safeguarding the revolution.

Nicole Grajewski, professor at the Sciences Po Center for International Studies, told AFP the protests represented a "serious challenge" to the country, but it was unclear if they would unseat the leadership, pointing to "the sheer depth and resilience of Iran's repressive apparatus".