Here's How Israeli Cyberattacks Crippled Iran During Recent War

The Wall Street Journal reported that a 12-day cyber campaign, attributed to Israel, targeted Iran’s financial infrastructure, specifically aiming to undermine the Islamic Revolutionary Guard Corps (IRGC). The hacker group Predatory Sparrow, which the report links to the Israeli government, claimed responsibility for attacking Bank Saderat (referred to as Bank Seraph in some contexts), Iran’s oldest and largest state-owned bank and a central financial institution for the IRGC. The cyberattack deleted critical banking data, halted military payroll systems, and disrupted both online and in-branch services, causing ATMs to go offline and stopping salary and pension payments across the country.

The operation extended to Nobitex, Iran’s dominant cryptocurrency exchange, where hackers extracted $90 million in digital assets tied to the IRGC. Predatory Sparrow reportedly transferred these funds to blockchain addresses where they could not be recovered, effectively “burning” the assets and removing them from circulation. This loss significantly weakened the IRGC’s financial operations.

The cyberattacks triggered widespread economic disruption in Iran. The Iranian rial plummeted by over 12% in value, and trading on the Tehran Stock Exchange was suspended as panic spread. Although Bank Melli, Iran’s largest commercial bank, was not directly targeted, it faced overwhelming cash withdrawal demands, exacerbating the crisis. The Journal noted that the attacks disrupted the IRGC’s ability to maintain loyalty among officials and security personnel, as many were unable to access personal funds.

At a NATO summit, President Trump stated, “We want [Iranians] to be prosperous, we want them to do well, but they can’t have nuclear weapons,” signaling to Iran’s Supreme Leader that continued pursuit of nuclear capabilities could lead to further economic devastation. The U.S. is reportedly collaborating with Israel on cyber operations, capitalizing on Western sanctions that have pushed Iran toward vulnerable financial channels like cryptocurrency and informal banking networks. The Journal also emphasized that such cyber warfare strengthens the U.S.-Israel alliance, noting, “The more Washington and Jerusalem operate together in combat, the stronger their alliance grows.”