Brazil arrests four over alleged €30M bank fraud tied to service-provider flaw
Summary
Brazil arrested four suspects and European authorities charged three others over an alleged €30M bank fraud linked to a service-provider flaw. Commerzbank confirmed client accounts were affected but said customers suffered no financial losses.
Key points
- Four suspects were arrested in Brazil and three others were identified for prosecution in Spain and Bulgaria.
- Authorities say attackers exploited a software vulnerability introduced by a faulty update at a financial service provider.
- The fraudulent withdrawals from German online banking accounts took place over four days in November 2023; investigators put the associated losses at about €30 million.
- Commerzbank confirmed its clients were affected by unauthorized direct debits but said customers suffered no financial losses.
- Investigators say proceeds were routed through pass-through accounts, companies, payment institutions, virtual-asset platforms and payment cards.
- Operation Klonen involved 21 search-and-seizure warrants across seven Brazilian cities; a court ordered seizures of assets worth up to R$106 million.
Article Details
- Event Type
- Arrests and charges following alleged cyber-enabled bank fraud exploiting a service-provider software flaw
- Impact
- Authorities reported losses of about €30 million from unauthorized withdrawals over four days in November 2023. Commerzbank confirmed that its clients were affected but said customers suffered no financial losses. Brazilian authorities arrested four suspects and ordered the seizure of assets worth up to R$106 million; three additional suspects were identified for prosecution in Spain and Bulgaria.
Countries
BrazilFour cybercriminals were arrested in Brazil and three others were charged in Europe after exploiting a vulnerability at a service provider to withdraw money from Commerzbank customer accounts.BulgariaThree additional suspects were charged in Spain and Bulgaria.GermanyWhile neither the Brazilian Federal Police nor Germany’s BKA named the affected German financial institution, Brazilian media identified it as Commerzbank, a major European financial institution that generates more thanSpainThree additional suspects were charged in Spain and Bulgaria.