The hacker group has been responsible for cyber attacks on websites across a variety of Israeli sectors in the past couple of months.
The new malware allows hackers to steal data from Telegram and take screenshots and record sound.
The Iranian attacks were likely carried out as retaliation against cyberattacks that targeted ports, trains and gas stations in Iran.
Israeli institutions have been the victims of a slew of hacking attacks in recent weeks.
A report was able to identify a handful of victims whose iPhones had been hacked using surveillance software developed by Israeli company QuaDream.
Ukrainian hackers claimed they have hacked into the emails of a senior Russian military spy who was accused of hacking the Hillary Clinton campaign in 2016.
The scale of the attacks over the past couple of days is causing concern as the country faces increasing threats from cybercriminals.