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US Intensifies Reaction To Iran's Cyber Threats Amid Nuclear Talks

Maryam Sinaiee
Maryam Sinaiee

Iran International

Sep 15, 2022, 09:10 GMT+1Updated: 17:39 GMT+1

The United States Wednesday slapped new sanctions on individuals and entities linked to Iran's Revolutionary Guards for Tehran's "malicious" cyber activities.

The US Department of the Treasury’s Office of Foreign Assets Control (OFAC) sanctioned ten individuals and two companies, Najee Technology and Afkar System, over their roles in conducting malicious cyber acts including ransomware activity, the Treasury said in a press release.The Treasury Department had also sanctioned Iran’s intelligence ministry for “cyber operations” against the US and its allies on Friday.

“We will continue to take coordination action with our global partners to combat and deter ransomware threats, including those associated with the IRGC,” said Brian E. Nelson, under secretary of the Treasury for terrorism and financial intelligence.

The United States and its European allies have intensified warnings over the activitiesof hackers and cyber-espionage threat actors believed to be sponsored by the Islamic Republic of Iran following reported Iranian cyber operations against Albania, a NATO member.

The Western warnings and US sanctions come as 18-month-long negotiations to revive the 2015 nuclear deal with Iran have hit a snag, with Tehran hardening its position.

Tirana cut diplomatic ties with Tehran due to a cyberattack in July that temporarily disrupted government websites and services.

The US Treasury Department on September 9 sanctioned Iran’s intelligence ministry for “cyber operations” against the US and its allies, a day after White House and NATO allies condemned the July attack which happened around the time of a conference of the exiled Iranian Albania-based opposition group Mujahideen-e Khalq (MEK).

Three alleged cyber criminals named by the US
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Three alleged cyber criminals named by the US

In early August, cybersecurity firm Mandiant expressed “moderate confidence” the attackers were acting in support of Tehran’s efforts to disrupt the MEK conference, which had to be cancelled as well due to a terror threat.

Microsoft also announced Monday that it has been tracking hacking activities by an Iran-linked group, known as DEV-0343, that targeted US and Israeli defense and other key companies. ““DEV-0343 continues to evolve their techniques to refine its attacks,” the report said.

Iran’s foreign ministry Thursday rejected accusations about the alleged cyberattack. Relations between Tehran and Tirana have been tense since 2014, when Albania accepted some 3,000 members of the MEK.

Albania’s interior ministry on Saturday accused Tehran of another attack on its government computer systems on Friday that forced Tirana to temporarily take its Total Information Management System (TIMS) offline. Albanian Prime Minister Edi Rama said on Twitter the cyberattack was carried out by the “same aggressors” behind the July hack.

Hackers and cyber spies allegedly working for Iran have also been accused of targeting those specializing in Middle Eastern affairs or nuclear security including academics, policymakers, diplomats, journalists, as well as human rights activists who focus on Iran.

These threat actors have improved and polished their technics over the years. According to a Wednesday report by Security firm Proofpoint in mid-2022, the Iran-aligned threat actor known as TA453 deployed a new social engineering impersonation technique informally called ‘Multi-Persona Impersonation’ (MPI) by Proofpoint.

MPIis based on the psychology principle of social proof and involves using at least two personas on a single email thread to convince phishing targets of the legitimacy of the threat actor’s emails.

According to Proofpoint researchers, in a standard TA453 campaign, the threat actor masquerades as an individual such as a journalist working to collaborate with the intended target. TA453 has targeted academics, policymakers, diplomats, journalists, and human rights workers, they said.

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US Sanctions More Iranians Over Cybercrimes

Sep 14, 2022, 20:48 GMT+1

The US Justice Department charged Wednesday three more Iranian citizens with cyberattacks that targeted power companies, local governments and small businesses and nonprofits. 

According to the prosecutors, the suspects targeted hundreds of victims in the US and other countries, encrypting and stealing data from victims’ networks and threatening to release it unless exorbitant ransom payments were made. In some cases, the victims made those payments.

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A senior Justice Department official said that the hackers are not believed to have been working on behalf of the Iranian government but instead for their own financial gain, and some of the victims were even in Iran. 

The case was filed in federal court in New Jersey, where a municipality in Union County was hacked last year. One of the victims was a domestic violence shelter in Pennsylvania, which – according to the indictment -- was extorted out of $13,000 to recover its hacked data.

In the latest actions as part of the US government’s response to the malicious cyber activities by Iranian actors, the Department of the Treasury’s Office of Foreign Assets Control (OFAC) also sanctioned ten individuals and two entities Wednesday for their roles in malicious cyber acts, including ransomware activity. 

The OFAC said all the individuals and entities designated Wednesday are affiliated with Iran’s Revolutionary Guard (IRGC).  

Under Secretary of the Treasury for Terrorism and Financial Intelligence Brian E. Nelson said, “We will continue to take coordination action with our global partners to combat and deter ransomware threats, including those associated with the IRGC.”

Iran’s Currency Drops 10 Percent As Hopes For A Nuclear Deal Dim

Sep 13, 2022, 08:59 GMT+1

The US dollar has risen by more than 10 percent Since August 19 against the Iranian rial as optimism about a nuclear deal with the United States has turned into pessimism.

The dollar was trading above 310,000 rials on Tuesday, up from just above 280,000 in mid-August when observers and diplomats saw a real chance for a deal after 16 months of talks to limit Iran’s nuclear program in exchange for lifting key US sanctions.

In recent weeks, Iran has hardened its position, with US and European officials now saying that a quick agreement is unlikely.

Rials decline has accelerated in the past week, as diplomats have expressed more pessimistic views about the prospects for a deal.

The Iranian currency has lost value more than ninefold since early 2018 when former US President Donald Trump withdrew from the 2015 nuclear agreement, the JCPOA and imposed crippling oil export and banking sanctions on Iran. In 2017 the rial was trading at around 33,000-34,000 to the US dollar.

The currency has been extremely sensitive to developments surrounding the nuclear dispute, with positive news reinforcing hopes for lifting of sanctions and negative news leading to economic uncertainty.

With the practical devaluation of the rial annual inflation has soared close to 50 percent and tens of millions of working Iranians have sunk into relative poverty. Food prices have risen by at least 100 percent in the past year.

US Sanctions Iran Intelligence Ministry Following Albania Hacking

Sep 9, 2022, 17:36 GMT+1

With talks paused on the 2015 Iran nuclear deal, the United States has sanctioned Iran’s intelligence ministry for “cyber operations” against the US and allies.

The US Treasury Department announced the move Friday, two days after Albania, a member of Nato since 2009, broke off diplomatic relations with Tehran after Albanian government computer systems were disrupted, apparently deliberately, in July. The US Treasury statement said the responsible “cyber threat actors” were “assessed to be sponsored” by Iran. Tehran has denied involvement.

Brian Nelson, the Under Secretary of the Treasury for Terrorism and Financial Intelligence, said that “Iran’s cyber attack against Albania disregards norms of responsible peacetime State behavior in cyberspace, which includes a norm on refraining from damaging critical infrastructure that provides services to the public.” Nelson vowed the US would not tolerate “Iran’s increasingly aggressive cyber activities.” Esmail Khatib, intelligence minister since August 2021, was also sanctioned.

The Treasury statement made clear that not only US citizens and entities were barred from dealings with Iran’s intelligence ministry and minister but that non-US persons and financial institutions dealing with them could face punitive US actions.

The action was taken under Executive Order 13694, signed by President Barack Obama in 2015 to deal with cyber threats. Given Iran’s intelligence ministry is already under a range of US sanctions, largely over links to regional allies the US deems ‘terrorists,’ the practical effect of the new designation is unclear.

Talks to revive the 2015 nuclear deal, the JCPOA (Joint Comprehensive Plan of Action), have already faced challenges in identifying which US sanctions, imposed since Washington left the agreement in 2018, contravene its terms. Tehran has argued that measures introduced under rubrics like ‘terrorism’ and ‘human rights’ potentially impede it ability to access world markets as required under the JCPOA.

Virtual warfare

Talks to revive the JCPOA under President Joe Biden, who took office January 2021, have not abated a long-running cyber ‘warfare’ between the US and Iran, and between Israel and Iran. Stuxnet, a malicious computer worm first uncovered in 2010 and reportedly developed jointly by the US and Israel, damaged Iranian nuclear facilities.

The US in 2019 refused to comment on reports it had carried out a cyber attack on Iran in the wake of missiles damaging Saudi oil facilities, an action claimed by Ansar Allah, the Iran-backed Yemeni group widely known as the Houthis.

Iran has also suffered hacks of television channels, railway systems, fuel distribution, and prison security cameras, generally claimed by shadowy groups of unknown provenance. The television hacking including the appearance of supportive images of the exiled opposition group the Mujahideen-e Khalq (MEK).

The MEK was moved by the US after 2013 to Albania from Iraq, where it had been allied with Saddam Hussein until the 2003 US-led invasion. The group operates an extensive social media operation from its heavily fortified compound, discourages visitors, and claims to have given up violence.

Iran Losing Steel Export Markets, Industry Insider Says

Sep 7, 2022, 22:14 GMT+1
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Maryam Sinaiee

A member of the Iranian Steel Producers Association has warned that the country may lose its foreign steel markets if a recent plunge in exports continues.

Reza Shahrestani told Etemad Online Wednesday that in the first four months of the Iranian calendar year (started March 21), Iran’s steel exports dropped by 900,000 tons in comparison with the same four months in the previous year. During March 2021-March 2022 Iran exported a total of 4.2 million tons of various types of steel. The drop has reduced export revenues by $700 million, he said.

“We will lose our markets if this trend continues in the coming months,” he warmed while predicting a total loss of $2.5 billion in export revenues for the whole year if the trend continues.

Shahrestani blamed the government for imposing heavy export duties after steel prices rose in international markets due to the Russia-Ukraine conflict. “They didn't heed our advice no matter how strongly we objected to their decision arguing that Russia was dumping its steel products in international markets by offering huge discount.”

Shahrestani told Shargh newspaper in Tehran in May that Iran’s biggest customers --China, Afghanistan, Thailand and South Korea -- had shifted their orders to Russia as it was offering discounts of 15-20 percent on its steel and the impact on Iran’s traditional markets was already noticeable.

Reza Shahrestani a member of Iran's steel producers association
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Reza Shahrestani a member of Iran's steel producers association

According to a report by the World Steel Association in June, Iran's crude steel production had dropped 17.6% year-on-year in May to 2.3 million tons following a plunge of 20.7 percent to 2.2 million tons in April.

The decline in Iran’s crude steel production in April and May impacted its overall number for 2022. While its production level was normal until end of March, the reduction in that month turned its balance sheet negative for 2022. It produced 11.4 million tons of raw steel in January-May 2022, about 10.8% less than the same period in 2021. Iran is the tenth largest producer of crude steel in the world

Shahrestani also pointed out that few international companies trade with Iran's steelmakers due to US sanctions and the need to circumvent them. “Many European, Japanese, and Korean companies will not trade with us. [On the other hand,] Russia stole our markets with huge discounts when it was sanctioned, and we lost our opportunities.”

He refused to disclose the names of the countries that import steel from Iran despite the sanctions. “Due to the sanctions such statistics better not be published. But many neighbouring countries and countries in the Far East trade with us,” he added.

Shahrestani told Etemad Online that revival of the 2015 nuclear deal (JCPOA) with world powers, can have a positive impact on reviving steel exports.

Domestic demand for steel is currently sluggish because the market is waiting for a nuclear agreement and there is uncertainty about foreign exchange rates, he said. Without a deal the exchange rate the US dollar can jump by as much as 50 percent which can harm the steel industry.

Amid United States' sanctions on Iran's oil exports, steel is one of the main exports earning foreign currency for the government, which faces a serious financial crunch.

Iran has tried to compensate for loss of oil revenue by boosting non-crude exports of petrochemicals and steel in the four years since former US President Donald Trump withdrew from the 2015 deal and imposed oil export sanctions.

Trump Rebukes Biden For Paying Iran Billions To Restore Nuclear Deal

Sep 4, 2022, 13:27 GMT+1

Former US president Donald Trump has once again rebuked Joe Biden’s administration for the apparently imminent agreement to revive the 2015 nuclear deal with Iran.

In a Saturday rally among his supporters in Wilkes-Barre, Pennsylvania, Trump said, “Iran was dying to make a deal with me. I would have had a deal done with Iran one week after the election.”

Criticizing the possible financial benefits of such a deal for the Islamic Republic, he said that “now we’re going to pay them hundreds of billions of dollars, and they’re going to have nuclear weapons within a short period of time. Honestly, they can’t be stupid; they must hate our country.”

He also denounced Biden’s policies that are "allowing Iran to build a massive nuclear weapon.”

Moreover, Trump praised China’s President Xi Jinping for ruling the Chinese people with an iron fist, remarks that prompted Mohammad Marandi, an advisor-cum-spokesman for Iranian negotiators, to respond. “Your regime has bloodied much of the world with an iron fist,” he tweeted on Sunday. 

Trump concluded by repeating his chorus, saying “Iran, China, Russia and North Korea weren't going to do a thing against us just two years ago,” but now “we're a nation that is no longer respected or listened to around the world.” 

Hassan Rouhani, the only Iranian president who has ever spoken to a US president, was quoted as saying that he had a chance to talk with Trump when he was in New York in 2019. Rouhani talked with Barack Obama over the phone in September 2013. 

On Thursday, September 1, a bipartisan group of 50 US lawmakers sounded the alarm on a looming agreement with Iran,urging the administration to immediately consult with Congress.