Cybercrime and Financial Institutions in Paraguay: A Growing Concern

Paraguay’s lack of specific legislation to combat cybercrime poses a significant challenge for financial institutions, which are increasingly vulnerable to online threats. In this article, we will explore the current state of cybercrime laws in Paraguay, the challenges faced by financial institutions, and recommendations for addressing these concerns.

Cybercrime Laws in Paraguay

Paraguay’s Criminal Code (Law No. 1160/98) and other laws nationwide govern most crimes committed through technology and information systems. However, a breakthrough was achieved with the enactment of Law No. 4439/11, which introduced some crimes related to technology into the criminal law.

Key Offenses Under the Criminal Code

• Illicit access to computer systems (Art. 174 b): unauthorized access to computer systems is punishable under the law.
• Illicit data access (Art. 146 b): accessing or attempting to access personal data without authorization is a crime.
• Illicit interception (Article 146c): intercepting or attempting to intercept electronic communications is punishable.
• Interference and modification of data: interfering with or modifying data, system sabotage, and manipulation of data processing are also punishable offenses.

Computer Crimes

The Criminal Code punishes computer crimes such as forgery and fraud under Article 248. Child pornography is a serious concern in Paraguay, with the legislation being quite broad and punishing its production, exhibition, distribution, import, export, and promotion.

International Treaties and Laws

Paraguay has ratified international treaties related to intellectual property and copyright, including the Budapest Convention. The Law on Copyright and Related Rights (Law No. 1328/1998) and laws on trademarks, designs, and industrial models are in place to protect these rights.

Challenges and Recommendations

• Lack of clear definition of “child pornography material”: Section 2 of Art. 9 of the Budapest Convention lacks a clear definition of child pornography material.
• Corporate liability: Paraguay’s legislation includes some hypotheses related to representation of legal persons, companies, or representatives of individuals.
• Financial institutions’ vulnerability to cyber threats: Financial institutions in Paraguay are increasingly vulnerable to cyber threats due to the lack of specific legislation to combat cybercrime.

Recommendations for Addressing Cybercrime Concerns

To address these growing concerns, the government should consider enacting a comprehensive law on cybercrime that includes provisions related to corporate liability and intellectual property rights. Financial institutions in Paraguay should take proactive measures to protect themselves against cyber threats, such as:

• Implementing robust security protocols: Regularly update and implement security protocols to prevent cyberattacks.
• Conducting regular risk assessments: Identify potential vulnerabilities and risks to improve cybersecurity.
• Providing cybersecurity training to employees: Educate employees on cybersecurity best practices to prevent human error.