Jerome Powell says Fed is ‘on alert’ for possible Iranian cyberattacks because ‘we’re a target as well’

During a congressional hearing, Powell was asked about the cybersecurity protections of financial institutions, including the central bank. 

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

Powell said the Fed had been “in touch” with other regulators and government agencies that protect against foreign cyberattacks. The central bank also warned banks to “be on alert for things like that to happen,” Powell said, referring to cybersecurity breaches. 

The Fed has the necessary resources to stave off a possible cyberattack, according to Powell. 

“The government generally spends a lot on these things,” he said. “That said, you can never, ever be comfortable in this area because the bad guys are always getting better.” 

Concerns about possible cyber strikes from Iran or its proxy groups grew after the U.S. attacks on the country’s nuclear enrichment sites over the weekend. Businesses and the financial sector in particular have already been warned by experts and government agencies, including the Department of Homeland Security, that Iran might respond to the U.S.’s air strikes by trying to hack critical digital infrastructure. 

As yet there have been no known cyberattacks in retaliation for the weekend’s raid. However, on Monday, Iran did fire a barrage of missiles at a U.S. military base in Qatar. U.S. defense systems successfully intercepted those missiles. 

Despite the rising tensions, the U.S., Iran and Israel appear to be reaching a detente. Early Tuesday morning President Donald Trump announced a ceasefire between all three countries that would end any further hostilities. The president immediately accused Israel and Iran of violating the ceasefire shortly after it was struck.

“I’m not happy with Israel,” Trump told reporters. “Not happy with Iran, either.”

Iranian cyberattacks have been a lingering threat for U.S. companies and government agencies. 

Last April the U.S. Treasury Department sanctioned two Iranian companies and four individuals for allegedly working with the Iranian Islamic Revolutionary Guard Corps’ cyber division in a series of phishing and malware attacks against American companies and government entities. The Justice Department indicted the four people involved. In one instance, the group succeeded in compromising upwards of 200,000 employee email accounts, according to the Justice Department. 

Iranian attacks stretch back several presidential administrations. As far back as 2016, the FBI charged a group of seven Iranians connected to the Iranian government for trying to hack into financial institutions and a dam in New York. The group used botnets and malicious computer code against roughly 50 financial institutions between 2011 and 2013.