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)
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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.



Ukraine Gets New Chief Diplomat as War with Russia Enters Critical Phase 

In this photo provided by the Ukrainian Parliament Press Office, Ukraine's newly appointed Foreign Minister Andrii Sybiha speaks in parliament in Kyiv, Ukraine, Thursday, Sept. 5, 2024. (Andrii Nesterewnko/Ukrainian Parliament Press Office via AP)
In this photo provided by the Ukrainian Parliament Press Office, Ukraine's newly appointed Foreign Minister Andrii Sybiha speaks in parliament in Kyiv, Ukraine, Thursday, Sept. 5, 2024. (Andrii Nesterewnko/Ukrainian Parliament Press Office via AP)
TT

Ukraine Gets New Chief Diplomat as War with Russia Enters Critical Phase 

In this photo provided by the Ukrainian Parliament Press Office, Ukraine's newly appointed Foreign Minister Andrii Sybiha speaks in parliament in Kyiv, Ukraine, Thursday, Sept. 5, 2024. (Andrii Nesterewnko/Ukrainian Parliament Press Office via AP)
In this photo provided by the Ukrainian Parliament Press Office, Ukraine's newly appointed Foreign Minister Andrii Sybiha speaks in parliament in Kyiv, Ukraine, Thursday, Sept. 5, 2024. (Andrii Nesterewnko/Ukrainian Parliament Press Office via AP)

Ukraine’s parliament approved the appointment of a new foreign minister Thursday, two lawmakers said, as President Volodymyr Zelenskyy sought to breathe fresh life into his administration with the war against Russia poised for what could be a pivotal phase.

Andrii Sybiha, a former ambassador to Türkiye, is the country’s new chief diplomat. He replaced Dmytro Kuleba, who became one of Ukraine’s most recognizable faces on the international stage as he petitioned and pleaded with Western countries to support Ukraine’s war effort.

Sybiha, 49, has been working as Kuleba’s deputy since April.

Zelenskyy wants to replace almost a dozen top officials in his biggest government shake-up since Russia’s full-scale invasion started on Feb. 24, 2022. Other changes included the heads of strategic industries, justice, natural resources and farming.

Parliament’s approval is required for the changes. Ukrainian lawmakers Yaroslav Zhelezniak and Oleksii Honcharenko confirmed the vote to The Associated Press.

Zelenskyy said Wednesday of the reshuffle that Ukraine needs “new energy.”

The war, more than 900 days long, is on the cusp of what could be a key period.

A likely hard winter lies ahead, testing the country’s resolve. Ukraine’s power grid is under severe strain after Russian missiles and drones knocked out around 70% of the country’s generation capacity. That could mean going without heat and water.

On the battlefield, Ukraine is waiting to see whether the military’s gamble with its surprise thrust into Russia’s Kursk border region a month ago pays dividends. Meanwhile, outgunned Ukrainian soldiers are gradually being pushed backward by Russia’s monthslong drive deeper into eastern Ukraine, and Ukrainian civilians are at the mercy of Russia’s deadly long-range aerial strikes.

The casualty list from a Russian missile strike Tuesday on a military training school in the Ukrainian city of Poltava grew to 55 dead and 328 wounded, Ukraine’s Interior Ministry said Thursday. A search and rescue operation was continuing.

No major policy changes were expected under the new administration. Zelenskyy’s five-year mandate expired in May, but he remains in power under the provisions of martial law, and his leadership is largely unchallenged.

Sybiha, the new foreign minister who also previously worked in the president’s office, takes on the role as Ukraine endeavors to prevent war fatigue from eroding the West’s commitment.

Kyiv officials will also have to navigate the result of the US election in November, which could produce important policy shifts in Washington.

Top of Ukraine’s wish list at the moment are more Western air defense systems and permission from its Western partners to let it use their weapons to hit targets on Russian soil. Some Western leaders are reluctant to grant that request, because they fear an escalation that could drag them into the fighting.

Top US military leaders, including Defense Secretary Lloyd Austin and Gen. C.Q. Brown, chairman of the Joint Chiefs of Staff, will meet in Germany on Friday to discuss those issues with European allies.

Zelenskyy hasn’t shrunk from major decisions that risk alienating senior officials and perplexing the public.

In February, he replaced his top general in a shake-up aimed at reigniting battlefield momentum, and the then defense minister Oleksii Reznikov quit a year ago, after Zelenskyy said that he would be replaced and named his successor.