Oct 23 (Reuters) - An Iranian hacking group is actively

scouting U.S. election-related websites and American media

outlets as Election Day nears, with activity suggesting

preparations for more "direct influence operations," according

to a Microsoft ( MSFT ) blog published on Wednesday.

The hackers - dubbed Cotton Sandstorm by Microsoft ( MSFT ) and

linked to Iran's Islamic Revolutionary Guard Corps - performed

reconnaissance and limited probing of multiple "election-related

websites" in several unnamed battleground states, the report

said. In May, they also scanned an unidentified U.S. news outlet

to understand its vulnerabilities.

U.S. Vice President Kamala Harris, the Democratic candidate,

faces Republican rival Donald Trump in the Nov. 5 presidential

election, which polls suggest is an extremely tight race.

"Cotton Sandstorm will increase its activity as the election

nears given the group's operational tempo and history of

election interference," researchers wrote. The development is

particularly concerning because of the group's past efforts,

they said.

A spokesperson for Iran's mission to the United Nations said

that "such allegations are fundamentally unfounded, and wholly

inadmissible."

"Iran neither has any motive nor intent to interfere in the

U.S. election," the spokesperson said.

In 2020, Cotton Sandstorm launched a different cyber-enabled

influence operation shortly before the last presidential

election, according to U.S. officials. Posing as the right-wing

"Proud Boys," the hackers sent thousands of emails to Florida

residents, threatening them to "vote for Trump or else!"

The group also released a video on social media, purporting

to come from activist hackers, where they showed them probing an

election system. While that operation never affected individual

voting systems, the goal was to cause chaos, confusion and

doubt, senior U.S. officials said at the time.

Following the 2020 election, Cotton Sandstorm also ran a

separate operation that encouraged violence against U.S.

election officials who had denied claims of widespread voter

fraud, Microsoft ( MSFT ) said.

The Office of the Director of National Intelligence, which

is coordinating the U.S. federal effort to protect the election

from foreign influence, referred Reuters to a past statement

that said: "Foreign actors - particularly Russia, Iran, and

China - remain intent on fanning divisive narratives to divide

Americans and undermine Americans' confidence in the U.S.

democratic system."