Brasil’s Fintech Boom: A Haven for Cyber Criminals and Financial Threats
Brasil’s fintech sector has experienced remarkable growth, making it a global leader in digital banking adoption. According to EY and Accenture surveys, around 50% of Brazilians use online banking regularly, and 44% hold digital-only accounts. The launch of the central bank’s instant-payments platform, Pix, in 2020 further fueled this trend, processing a staggering 3 billion transactions monthly.
The Fintech Boom: Opportunities and Challenges
- Approximately half of Brazilians use online banking regularly.
- 44% of customers hold digital-only accounts.
- Central bank’s instant-payments platform, Pix, processes 3 billion transactions monthly.
Brazil’s Attraction for Cybercriminals
However, the fintech boom has not gone unnoticed by cybercriminals. According to a Kaspersky Lab report, Brazil had the highest number of attempted banking trojan infections globally between June 2022 and July 2023, with 1.8 million instances. Eight out of the 13 most popular types of trojans originated in Brazil.
Key Point The financial landscape shift attracted cybercriminals, making Brazil a top target for cyberattacks.
The Evolution of Cyberattacks
Initially, cybercriminals used simple banking trojans due to their minimal skill requirement. As banks strengthened their defenses, crooks turned to advanced point-of-sale (POS) malware like Prilex. Prilex intercepts card details from card readers and blocks contactless transactions, authorizing fraudulent transactions based on stolen credentials.
The Rise of Banking Trojans
- Minimal skill requirement for cybercriminals.
- Banks strengthened their defenses, leading crooks to more sophisticated attacks.
The Emergence of Prilex: Advanced POS Malware
- Intercepts card details from card readers.
- Blocks contactless transactions.
- Authenticates fraudulent transactions based on stolen credentials.
The Expansion of Cyberattacks
Beyond banking trojans, cybercriminals are now deploying ransomware, which encrypts computers and demands payment to restore access. Moreover, Brazil’s legislators discussed the growing use of artificial intelligence in cybercrime in October 2023.
Financial Consequences and Mitigation Efforts
The financial repercussions of cybercrime in Brazil are significant, with annual costs amounting to roughly $20 billion––approximately 0.9% of the country’s GDP. Although Brazil implemented a stringent data protection law in 2022 and banks increased their cybersecurity spending, consumers remain the biggest concern.
- Brazil ranks among the top five countries in terms of the cost of cybercrime.
- Annual cost of cybercrime amounts to roughly $20 billion.
- Brazilian banks increased their cybersecurity spending to $9 billion in 2023.
Eduardo Mônaco, ClearSale Until consumers are fully aware of the risks, the waters will continue to teem with phishing scams.