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.



Le Pen Makes New Threat to Withdraw Support for French Government

French far-right leader and member of parliament Marine Le Pen, President of the French far-right National Rally (Rassemblement National - RN) party parliamentary group, talks to journalists as she leaves after a meeting with the French Prime Minister to discuss the 2025 budget bill (PLF) at the Hotel Matignon in Paris, France, November 25, 2024. (Reuters)
French far-right leader and member of parliament Marine Le Pen, President of the French far-right National Rally (Rassemblement National - RN) party parliamentary group, talks to journalists as she leaves after a meeting with the French Prime Minister to discuss the 2025 budget bill (PLF) at the Hotel Matignon in Paris, France, November 25, 2024. (Reuters)
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Le Pen Makes New Threat to Withdraw Support for French Government

French far-right leader and member of parliament Marine Le Pen, President of the French far-right National Rally (Rassemblement National - RN) party parliamentary group, talks to journalists as she leaves after a meeting with the French Prime Minister to discuss the 2025 budget bill (PLF) at the Hotel Matignon in Paris, France, November 25, 2024. (Reuters)
French far-right leader and member of parliament Marine Le Pen, President of the French far-right National Rally (Rassemblement National - RN) party parliamentary group, talks to journalists as she leaves after a meeting with the French Prime Minister to discuss the 2025 budget bill (PLF) at the Hotel Matignon in Paris, France, November 25, 2024. (Reuters)

Far-right leader Marine Le Pen issued a new threat on Monday to withdraw support for France's coalition government in a no-confidence vote, after talks with Prime Minister Michel Barnier failed to satisfy her party's demands for budget concessions.

Le Pen said nothing had changed following the discussions, and that she was not optimistic a compromise on the belt-tightening 2025 budget bill could be reached.

"Nothing appears less certain," she told reporters.

The Senate was set to debate on Monday following its rejection by lawmakers in the National Assembly after revisions by lawmakers in the lower house.

Opposition parties are threatening to topple Barnier's government as it seeks approval for the budget, and his fragile coalition relies on her National Rally (RN) party for its survival.

The government is seeking to squeeze 60 billion euros ($62.85 billion) in savings through tax increases and spending cuts to reduce the deficit to 5% of economic output next year from over 6% this year.

National Rally has said it will support the efforts to oust the government if certain demands are not met. Le Pen said last week that the RN opposes increasing the tax burden on households, entrepreneurs or pensioners, and that so far these demands were not reflected in the budget bill.

LEGAL PROBLEMS

Le Pen's own political future is also under threat, with prosecutors seeking a mandatory five-year ban from politics for her alleged role in an embezzlement scheme. Le Pen denies the allegations.

Some analysts have suggested her legal problems may accelerate her plans to bring down the government,

Barnier's struggles to secure approval for the budget have fueled speculation he will invoke article 49.3 of the constitution, which allows the text to be adopted without a vote. Such a move could trigger a no-confidence motion against the government.

"It is true that we find very little quality in this budget and very little time for the government to try to increase its qualities and reduce its defects," Le Pen said.

Barnier was also due to meet other political leaders on Monday to seek a compromise on the budget bill. A final vote on the overall budget is scheduled for Dec. 12.