Financial Crime World

Financial Inclusion and Financial Crime: A Growing Concern in Brazil’s Fintech Hub

Brazil has been at the forefront of fintech adoption, with its instant-payments platform Pix achieving unprecedented success. With 3 billion transactions per month, it has become a hub for financial innovation. However, this boom has also attracted cyber-criminals, who have turned their attention to the country’s digital banking system.

A Growing Concern

According to Kaspersky Lab, Brazil is the top country for attacks by banking trojans, with over 1.8 million attempted infections from June 2022 to July 2023. Eight out of the 13 most popular types of trojans globally are made in Brazil.

From Basic to Advanced Malware

Initially, cyber-criminals focused on using banking trojans, which require minimal skill to use. However, as banks improved their defenses, criminals had to adapt and develop more complex and lucrative attacks.

  • The result is the emergence of advanced “point of sale” malware, such as Prilex.
  • This malware is used to steal bank details from card readers by blocking contactless payments and disrupting the short-range connection between a credit card and payment terminal.

A Major Concern for Brazil’s Financial Sector

In 2016, during Rio’s carnival, hackers used a basic version of this software to remotely take over 1,000 ATMs. The ease with which these attacks can be carried out has made Brazil an attractive target for cyber-criminals.

The Need for Robust Cybersecurity Measures

Despite its financial inclusion success story, the country must now confront the challenge of ensuring the security and integrity of its digital banking system. With fintech adoption rates among Brazilians ranking among the highest globally, the need to address this issue is pressing.

  • The country must prioritize the development of robust cybersecurity measures to prevent further attacks and protect its citizens from financial crime.
  • As Brazil continues to drive innovation in the financial sector, it must also ensure that its digital banking system is secure and reliable.