Extensive Theft at Central Bank of Brazil: A Report Suggests That a Hacker Gained Access to Bank's System After Purchasing Insider's Credentials, Leading to Loss of $100 Million in a Single Night
In a shocking turn of events, hackers targeted Brazil's popular instant payment system, PIX, through a software company called C&M, which facilitates connections between financial institutions and the central bank. The breach, which took place on June 30, resulted in the theft of approximately 800 million Brazilian reais (around $148 million) from reserve accounts of six financial institutions.
The mastermind behind the cyberattack appears to be a former C&M employee, João Nazareno Roque, who was arrested on July 3 and is currently in custody. Roque allegedly sold his security credentials to the hackers for the equivalent of $2,770 and assisted in building a system to facilitate the theft, receiving an additional payment of about $1,800.
Authorities are working diligently to identify other participants in the cyberattack and have blocked about 270 million reais linked to the scheme. Unfortunately, a significant portion of the stolen funds, estimated at $40 million, was laundered through cryptocurrencies such as Bitcoin and Ethereum. The laundering involved LatAm OTC desks, highlighting the use of crypto networks for concealing the origin of illicit funds.
Fortunately, no retail customers suffered direct losses, as the stolen funds were from institutional reserve balances. The Central Bank suspended parts of C&M's access to its systems, and a Brazilian court has frozen accounts suspected of receiving stolen funds.
This incident underscores the risks of insider threats and the use of cryptocurrencies for money laundering. It serves as a reminder for businesses to prioritise cybersecurity and for authorities to remain vigilant against such threats.
In other news, G-Knot has appointed Fintech, Crypto veteran Wes Kaplan as CEO to launch the first Finger Vein Biometric Wallet. Meanwhile, GUNZ has announced the expansion of its GUN Token to Solana. BioMatrix has surpassed five million verified users, setting new standards for real human engagement in Web 3.0.
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[1] Source: Reuters [2] Source: The Wall Street Journal [3] Source: Bloomberg
- The stolen funds, estimated at $40 million, were laundered through cryptocurrencies such as Bitcoin and Ethereum, highlighting the use of crypto networks for concealing the origin of illicit funds.
- G-Knot has appointed Fintech, Crypto veteran Wes Kaplan as CEO to launch the first Finger Vein Biometric Wallet, indicating a continued focus on blockchain technology in finance.
