A newly identified malware, IOCONTROL, is causing widespread alarm as it targets critical infrastructure in Israel and the United States. Developed by Iranian hackers, IOCONTROL is specifically designed to attack Internet of Things (IoT) devices and operational technology (OT) systems, posing a severe risk to essential services.
This highly sophisticated and adaptive malware can infect a wide range of industrial devices, including routers, programmable logic controllers, human-machine interfaces, IP cameras, firewalls, and systems for managing fuel operations. These devices often serve as the backbone of critical infrastructure, such as fuel supply chains and water treatment facilities.
The malware’s modular design allows it to adapt its behavior based on the targeted manufacturer. Security researchers from Claroty’s Team82 uncovered IOCONTROL and classified it as a nation-state cyberweapon capable of causing large-scale disruptions. Among the manufacturers affected are D-Link, Hikvision, Unitronics, and Phoenix Contact.
IOCONTROL boasts several advanced features that make it exceptionally dangerous:
IOCONTROL is designed to perform a variety of malicious tasks, making it one of the most dangerous malware targeting critical infrastructure. Its key functions include:
These capabilities allow IOCONTROL to destroy systems, steal sensitive information, and propagate to other devices within a network.
Claroty’s analysis reveals that IOCONTROL has been used to breach 200 fuel stations in the United States and Israel. In one attack, hackers infiltrated Gasboy fuel systems and point-of-sale terminals, potentially giving them control over fuel pumps and connected devices.
The hacking group CyberAv3ngers, linked to these attacks, has previously claimed responsibility for targeting water treatment facilities. These incidents underscore the malware’s ability to disrupt vital services, such as fuel and water supply, which are critical to daily life and economic stability.
The IOCONTROL malware appears to be part of a larger effort by Iranian hackers to exploit vulnerabilities in industrial systems, particularly in nations perceived as adversaries. These attacks align with escalating geopolitical tensions and the growing prevalence of cyber conflicts between nations.
The malware’s modular structure makes it especially threatening, as it can be customized to target devices from multiple manufacturers. Its combination of stealth, persistence, and adaptability poses a significant challenge to global cybersecurity efforts.
To mitigate the risks posed by IOCONTROL, Claroty’s report recommends the following measures for organizations managing critical infrastructure:
The rising number of attacks on critical infrastructure highlights the urgent need for vigilance and proactive defense measures. Organizations must take immediate steps to secure their systems against the evolving threat posed by IOCONTROL, which has already demonstrated its potential for widespread disruption.
The threat actors tried to bait targets into downloading infected apps that would give them access to victim devices and leak personal data like location history and residential addresses.
The targeted senior officials include academicians, politicians, media professionals, and others
ShinBet said the stolen information would be used by Iran to launch attacks against Israeli nationals “through Israeli cells they have recruited within the country.” The targets were reached out with an “individually tailored cover story for each victim according to their area of work, so the approach doesn’t seem suspicious.”
In one case, the attacker disguised as a Cabinet Secretary lured the target saying he wanted to coordinate with PM Benjamin Netanyahu. Shin Bet has tracked the targets involved in the campaign and informed them about the phishing attempts.
“This is another significant threat in the campaign Iran is waging against Israel, aimed at carrying out assassination attacks. We request heightened awareness, as cyberattacks of this type can be avoided before they happen through awareness, caution, suspicion, and proper preventative behavior online,” said a Shin Bet official.
Shin Bet “will continue to act to identify Iranian activity and thwart it in advance.” It believes the motive behind the attacks was to manage future attacks on Israeli nationals using information given by Israeli cells recruited by Iran. The campaign is a sign of an escalation between Iran and Israel, the end goal being assassination attempts.
The recent discovery of phishing campaigns is part of larger targeted campaigns against Israel. In September 2024, 7 Jewish Israelis were arrested for allegedly spying on IDF and Israeli security figures for Iran.
The Times of Israel reports, “Also in September, a man from the southern city of Ashkelon was arrested on allegations that he was smuggled into Iran twice, received payment to carry out missions on behalf of Tehran, and was recruited to assassinate either Israel’s prime minister, defense minister, or the head of the Shin Bet.”
In the year 2022, we witnessed a number of state-sponsored cyber activities originating from different countries wherein the tactics employed by the threat actors varied. Apparently, this will continue into 2023, since government uses its cyber capabilities as a means of achieving its economic and political objectives.
It can be anticipated that more conflict-related cyber activities will eventually increase since there is no immediate prospect of an end to the conflict in Ukraine. These activities will be aimed at degrading Ukraine's vital infrastructure and government services and gathering foreign intelligence, useful to the Russian government, from entities involved in the war effort.
Additionally, organizations linked to the Russian intelligence services will keep focusing their disinformation campaigns, intelligence gathering, and potentially low-intensity disruptive attacks on their geographical neighbors.
Although Russia too will keep working toward its longer-term, more comprehensive intelligence goals. The traditional targets of espionage will still be a priority. For instance, in August 2022, Russian intelligence services used spear phishing emails to target employees of the US's Argonne and Brookhaven national laboratories, which conduct cutting-edge energy research.
It is further expected that new information regarding the large-scale covert intelligence gathering by Russian state-sponsored threat actors, enabled by their use of cloud environments, internet backbone technology, or pervasive identity management systems, will come to light.
It has also been anticipated that the economic and political objectives will continue to drive the operation of China’s intelligence-gathering activities.
The newly re-elected president Xi Jinping and his Chinese Communist Party will continue to employ its intelligence infrastructure to assist in achieving more general economic and social goals. It will also continue to target international NGOs in order to look over dissident organizations and individuals opposing the Chinese government in any way.
China-based threat actors will also be targeting high-tech company giants that operate in or supply industries like energy, manufacturing, housing, and natural resources as it looks forward to upgrading the industries internally.
The way in which the Iranian intelligence services outsource operations to security firms in Iran has resulted in the muddled difference between state-sponsored activity and cybercrime.
We have witnessed a recent incident regarding the same with the IRGC-affiliated COBALT MIRAGE threat group, which performs cyber espionage but also financially supports ransomware attacks. Because cybercrime is inherently opportunistic, it has affected and will continue to affect enterprises of all types and sizes around the world.
Moreover, low-intensity conflicts between Iran and its adversaries in the area, mainly Israel, will persist. Operations carried out under the guise of hacktivism and cybercrime will be designed to interfere with crucial infrastructure, disclose private data, and reveal agents of foreign intelligence.
The recent global cyber activities indicate that opportunistic cybercrime threats will continue to pose a challenge to organizational operations.
Organizations are also working on defending themselves from these activities by prioritizing security measures, since incidents as such generally occur due to a failure or lack of security controls.
We have listed below some of the security measures organizations may follow in order to combat opportunistic cybercrime against nations, states, and cybercrime groups :