US banks on high alert for cyberattacks

U.S. banks have been placed on high alert for cyberattacks following a U.S. intelligence assessment that warns Iran is preparing strikes as the war escalates.

The assessment specifically flags Iran-aligned hacktivists as likely to launch low-level operations, including distributed denial-of-service attacks that flood targeted servers with overwhelming internet traffic.

The financial services sector operates critical U.S. infrastructure — payments, clearing and settlement systems, trading platforms and Treasury markets — making it a prime target during geopolitical conflict.

Industry group SIFMA confirmed the sector “remains vigilant and ready to respond to cyber threats at all times, and especially when global cybersecurity risks are heightened.”

Major lenders are ramping up monitoring and operational resilience measures. Credit rating agency Morningstar DBRS and investment bank Lazard both warned that cyber risks to Western financial entities could rise sharply.

Iran has previously demonstrated willingness to hit commercial and financial targets with cyber tools.

The financial services sector was the top target for DDoS attacks in 2024, fueled by Middle East and Ukraine conflicts. Smaller-scale incidents and ransomware have already disrupted pockets of the market.

The trigger is last weekend’s killing of Iranian Supreme Leader Ali Khamenei in a U.S.-Israeli airstrike.