DistantNews
Hackers Target 'City of Billionaires' in Santa Catarina, Divert R$ 12 Million

Hackers Target 'City of Billionaires' in Santa Catarina, Divert R$ 12 Million

From Estadão · (20m ago) Portuguese Critical tone

Translated from Portuguese, summarized and contextualized by DistantNews.

TLDR

  • Hackers targeted the municipality of Jaraguá do Sul in Santa Catarina, Brazil, attempting to defraud R$ 40 million.
  • Approximately R$ 12 million was successfully diverted before authorities could block the remaining funds.
  • Investigations by civil and federal police are underway to recover the stolen money.

Jaraguá do Sul, a city renowned as Brazil's 'city of billionaires' for its strong industrial base, including giants like WEG and Malwee, has fallen victim to a sophisticated cyberattack. Hackers attempted to siphon off R$ 40 million from municipal accounts, managing to divert R$ 12 million before the swift action of the city's technical team and financial institutions could block the rest. This brazen attack highlights the vulnerabilities even well-established economic hubs face in the digital age.

The incident unfolded when the municipal accounting department detected irregular transactions on Thursday morning. A thorough internal investigation by the city's technology department has ruled out internal failures or compromised server credentials, strongly indicating an external breach targeting the banking software responsible for processing payments. The municipality has acted decisively, registering a formal complaint with the Civil Police and alerting the Federal Police to commence investigations into the sophisticated cyber fraud.

Conseguimos um bloqueio manual de cerca de 95%, a partir do momento em que identificamos a situação, porém, algumas outras movimentações já tinham sido feitas anteriormente

— João BertiChief of Staff of Jaraguá do Sul, explaining the partial success in blocking the fraudulent transactions.

While the city administration, through its Chief of Staff João Berti, expressed confidence in recovering the diverted funds, the event serves as a stark reminder of the persistent threats posed by cybercrime. The successful diversion of R$ 12 million, despite blocking 95% of the attempted fraud, underscores the need for continuous vigilance and robust security measures in both public and private sectors. As investigations proceed, Jaraguá do Sul, a symbol of Brazilian industrial prowess, now also faces the challenge of fortifying its digital defenses against such sophisticated external threats.

Portanto, ficou claro que houve um acesso externo no software da instituição bancária, responsável por fazer pagamentos

— João BertiChief of Staff of Jaraguá do Sul, concluding that the breach originated from an external access to the bank's software.
DistantNews Editorial

Originally published by Estadão in Portuguese. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.