The Cybercrime Carnival in Brazil: Loose Cyberlaws Make for Loose Cybercriminals

Brazil loses over $8 billion a year to Internet crime, making it the second-largest cybercrime generator in the world.

Just about a decade ago, bringing up Brazil would make most people draw up an associative mental image of colorful festivities in a city where Christ the Redeemer spreads his arms over densely populated favelas and beaches.

Today, Brazil also happens to be the second-largest cybercrime generator in the world, ranking No. 1 in Latin America and the Caribbean as both a source and target of online attacks. Malware and online fraud patterns in Brazil are developed and used by local cybercriminals and gangs who specialize in targeting its payment and services schemes.

In numbers, Brazil loses over $8 billion a year to Internet crime, which is the No. 1 economic crime in the country, compared to the rest of the world, where cybercrime is ranked fourth.

With about 54% of the country's 200 million citizens already using the Internet, cybercrime is a lucrative endeavor for small-timers, nouveau cybergangs and mafia bosses diversifying their portfolio.

One indication for cybercrime success rates comes from Febraban, the Brazilian Banking Federation, which says cybercrime causes 95% of losses for Brazilian banks. The facilitator of this crime is the unique Brazilian underground black market, which surpasses the Russian-speaking underground in both size and activity. Criminals in this bustling Wild West aren't considered sophisticated in technical terms, not versed in the art of online stealth, and apparently not even trying to hide in underground venues. As a matter of fact, their favorite is social networking sites.

It makes one wonder – what’s going on in Brazil that's different from the rest of the world? What makes cybercriminals in this one country be so brazen and successful all while using use very basic malware and stealth capabilities?

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