US banks on high alert for cyberattacks as Iran war escalates

The US financial services industry is on heightened alert for potential cyberattacks amid the unfolding war in Iran, with firms stepping up monitoring for threats that often rise during periods of geopolitical conflict, say executives and analysts.

The conflict has stoked concerns over the potential for Iran-linked cyberattacks on US financial services operations.

Cybersecurity has long been a top priority for the financial services industry, which operates critical US infrastructure, including payments, clearing and settlement systems, as well as trading platforms and Treasury markets, making it a top target of cyberattacks, according to industry data.

According to a US intelligence assessment that Reuters reported yesterday, Iran-aligned “hacktivists” could conduct low-level cyberattacks against US networks, such as distributed ​denial-of-service attacks (DDoS), whereby hostile actors overwhelm a targeted server with a flood of internet traffic.

Credit rating agency Morningstar DBRS says the most significant risks to global banks and asset managers are likely to be indirect, including sustained higher oil prices and shocks to borrowers, but warns that cyber risks may also rise.

“Iran could increase its cyberattacks against Western entities, including banks,” the credit rating agency says.

US investment bank Lazard’s geopolitical advisory team also this week flags cyber risks, noting that Iran has demonstrated a willingness to deploy cyber capabilities against commercial targets, including financial systems.