The 12-day war between Israel and Iran featured an unprecedented cyber campaign against the Islamic Republic’s financial system. Previous state-sponsored hacks aimed to steal data, ransom assets or disrupt operations. Israel did something far more radical: It destroyed digital assets and banking records to undermine the regime. Israel’s success offers the Trump administration new tools for confronting the Iranian threat.
Israel first struck Bank Sepah, Iran’s oldest and largest state-owned bank. The central financial institution of the Islamic Revolutionary Guard Corps, Bank Sepah serves Iran’s military and security forces, processing everything from salaries and pensions to sanctions-evading missile funds. Predatory Sparrow, a hacker group linked to the Israeli government, claimed credit for erasing Bank Sepah’s banking data and rendering its systems inoperable. Automated teller machines went dark, and online and in-branch services shut down. Salary and pension payments halted.