Federal Reserve On 'Alert' Amid Potential Iranian Cyberattack Threats, Says Jerome Powell: 'It's A Big Issue'

The U.S. Federal Reserve is bracing for potential Iranian cyberattacks following recent military actions, with Chair Jerome Powell confirming the central bank’s vigilance.

What Happened: The Fed is on high alert for potential retaliatory cyberattacks from Iran, Powell revealed during a congressional hearing on Tuesday. The U.S. military’s bombing of three Iranian nuclear facilities has raised concerns about possible cyber strikes, reported Fortune.

“We’re on the alert because we’re a target as well,” Powell stated. “So you’re right to raise it. It’s a big issue.”

He assured that the Fed is well-equipped to fend off any potential cyber threats. Powell expressed confidence in the government’s ability to fend off a potential cyberattack, but warned against complacency, given the evolving nature of cyber threats.

“…you can never, ever be comfortable in this area because the bad guys are always getting better," cautioned Powell.

Experts and government agencies have warned businesses, especially those in the financial sector, about the possibility of Iranian cyberattacks in response to the U.S. military actions.

Why It Matters: Iranian cyberattacks have spanned multiple U.S. administrations. In 2016, the FBI charged seven Iranians linked to the Iranian government for cyberattacks targeting about 50 financial institutions and a New York dam between 2011 and 2013, using botnets and malicious code.

The recent U.S. involvement in Israel’s conflict with Iran has led to a fragile geopolitical environment. Cybersecurity firms like CrowdStrike Holdings Inc CRWD are gaining relevance as potential retaliatory cyberattacks from Iran are anticipated. This has led to an incentive among government and private institutions to strengthen their digital defenses.

Earlier, in June, an Israel-linked group claimed responsibility for a cyberattack on Iranian cryptocurrency exchange, Nobitex, draining nearly $90 million. This incident further underscores the potential for cyber retaliation.

Despite the rising tensions, a ceasefire was announced by President Donald Trump early Tuesday morning, which was later accused of being violated by both Iran and Israel. However, the President later stated via Truth Social that Israel would not attack Iran again.