Israeli Hacker Group Cripples Iran’s National Bank, Causes Total Collapse of Online Financial System

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2025-06-19

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Iran’s state-owned Sepah Bank was recently hit by a devastating cyberattack, causing widespread system failures. Online banking services, digital platforms, and ATMs were all shut down. The hacker group behind the attack claimed to have completely destroyed internal data, resulting in wiped customer accounts and non-functional debit cards.

The group, known as Predatory Sparrow, is suspected to have ties to the Israeli government. It launched a large-scale cyber offensive targeting Sepah Bank, triggering major disruptions across Iran’s financial and communication infrastructure. In a statement posted on social media on the 17th, the group said it specifically targeted Sepah Bank due to its close connections with Iran’s Islamic Revolutionary Guard Corps (IRGC), accusing the bank of helping the government evade international sanctions and funding terrorism and nuclear development programs. The hackers framed the operation as an act of justice.

While Israel has not officially acknowledged any connection to Predatory Sparrow, local media widely believe the group is affiliated with Israeli intelligence. Cybersecurity experts have also linked the group to previous incidents, including the 2021 cyberattack that crippled gas stations across Iran and the 2022 hacking of an Iranian steel plant, which led to fires and physical damage. Experts argue that the sophistication of these attacks suggests state-level capabilities.

Following the most recent breach, widespread internet disruptions were reported across Iran. Connectivity issues plagued much of the country, and Cloudflare data showed near-total outages at two major mobile internet providers, effectively plunging Iran into a state of "internet lockdown." While Iranian authorities claimed the issues were due to "technical problems," the complete shutdown of multiple banking services and reports from the public about inoperative ATMs and inaccessible financial services painted a different picture.

Several major banks, including Melli, Pasargad, and Eghtesad-e Novin, also experienced outages and card malfunctions. Fars News Agency confirmed that the cyberattack crippled Sepah Bank’s remote services and warned that gas stations supported by the bank’s infrastructure might also face disruptions.