18 September 2014

Brazilian scammers score $3.75 billion in malware bank fraud

03 July 2014  |  5291 views  |  3 Brazilina flag 2

Brazilian criminal gangs have netted $3.75 billion in a micro-transaction fraud that compromises transactions made using the popular Boleto payment method.

RSA Research has discovered a Boleto malware or 'Bolware' fraud ring that may have compromised 495,753 Boleto transactions over a two-year period. The malware uses Man-in-the Browser attack vectors to intercept and modify Boleto information so that payments are redirected to a fraudster's account.

The Boleto system - in which consumers use merchant-generated invoices for B2B and retail purchases - is regulated by Banco Central do Brasil and has become the second most popular payment method (behind credit cards) in Brazil, accounting for an estimated 18% of all spending in the country during 2012.

Boletos can be generated both offline (printed copies) and mailed to customers, or online (by online stores for example) for electronic payments. Their popularity has risen because of the convenience for consumers who don't require a personal bank account to make payments using Boletos. Importantly, for the scammers, payments made via this method are not subject to chargebacks and can only be reverted by bank transfer.

To date, RSA Research has discovered the total value of all Boletos that were harvested by the Bolware C&C server amount to a total of US$3.75 billion. While the scammers behind this operation may have had the potential to cash out these modified Boletos, it is not known exactly whether all the funds were successfully redirected to fraudster-controlled bank accounts.

Up to 34 banks are believed to have lost money to the operation. RSA has turned over its research to both US and Brazilian law enforcement and has been in direct contact with the banks in question.

Comments: (3)

Stephen Bowen - IRIS Analytics GmbH - Neu-Isenburg | 04 July, 2014, 10:33

Surely this is $3.75m not $3.75billion? If it were billion, then each payment would be worth $7,500 - not exactly "micro".

Gerard Hergenroeder - IBM - New York | 07 July, 2014, 14:34

I agree it must be $ millions, not $ bilions. But, the fact still remains the systems was compromised which hurts its future growth.

Stephen Bowen - IRIS Analytics GmbH - Neu-Isenburg | 08 July, 2014, 12:44

I have just seen a copy of the RSA report on this fraud, and it does seem that the losses could amount to US$3.75bn. Unbelievable.

Comment on this story (membership required)
Log in to receive notifications when someone posts a comment

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board, sign up now.

Related blogs

Create a blog about this story (membership required)

Related stories

27 June, 2014
17 June, 2014
27 February, 2014
11 December, 2013
27 June, 2013
24 April, 2012
21 March, 2012

Related company news

 

Featured job

Competitive (including base, OTE, benefits)
London, UK

Find your next job