Brazil Plans Stricter Rules After Cyberattack Surge

Central bank outlines tougher oversight for financial system security

Brazil’s central bank has announced plans to tighten regulations following a sharp rise in cyberattacks targeting the country’s financial system. Supervision director Ailton Aquino said at a press conference in São Paulo that 68 incidents had been reported through October, including 37 cases of fraud. This marks the highest number since the bank began tracking such data in 2018 and already exceeds the 59 cases recorded in all of last year. The findings were detailed in the Financial Stability Report released earlier the same day.

Rising Threats to Financial Stability

Aquino emphasized the need for stronger oversight of third-party services and Application Programming Interfaces (APIs). These tools, which enable secure communication between different software systems, have become critical points of vulnerability. The central bank is finalizing rules for direct connections to the financial system’s network and expects to release them soon. Aquino noted that the agenda for strengthening security remains a priority.

The surge in cyber incidents highlights the growing risks faced by financial institutions in Brazil. Fraud cases represent more than half of the reported incidents this year. Regulators believe that improved monitoring of external service providers will help reduce exposure to attacks. Enhanced oversight is also expected to improve resilience against increasingly sophisticated threats.

Recent Regulatory Measures

In September, the central bank introduced new rules aimed at bolstering the security of the financial system. Earlier this week, it also regulated the crypto assets market to curb money laundering and fraud. These steps reflect a broader effort to modernize oversight in response to evolving digital risks. Aquino said the measures are part of a continuous agenda to safeguard financial stability.

The regulation of crypto assets marks a significant development, given the sector’s rapid growth in Brazil. Authorities hope stricter rules will prevent misuse while supporting innovation. The central bank’s actions align with global trends as regulators worldwide grapple with the challenges posed by digital finance. Brazil’s approach underscores the importance of proactive measures in maintaining trust in the financial system.

Outlook for Financial Security

The central bank’s upcoming rules are expected to set clearer standards for direct system connections. Stronger requirements for APIs and third-party services will likely shape how financial institutions manage digital infrastructure. Industry observers anticipate that compliance costs may rise, but resilience against cyber threats should improve. Aquino reiterated that the agenda remains strong and will continue to evolve.