The attacker used cipher to cache out

According to local media, this may be the biggest hack ever made against the Brazilian banking system. The attackers used instant payment systems such as PIX to utilize USDT and Bitcoin through exchanges and cryptocurrencies to cash out.

Brazilian banking system was leveraged: Attackers use crypto to cash out

The Brazilian banking system faces what could be the biggest attack ever made against several institutions. On Tuesday, local media reported that C&M, a company that provides financial software to several large financial institutions in Brazil, including Bradesco, the country’s second largest bank.

Unidentified parties have exploited a vulnerability in C&M’s software to allow control over several accounts linked as banks as a service. This allowed millions of Reai to be taken from other institutions that provide credit card services, such as Bradesco and Credsystem.

The Brazilian Central Bank has admitted that the attack took place and has cut off access to C&M’s system, but there have been no official reports detailing the actual losses caused by this exploit.

Sources report that losses could reach up to 1 billion Reais (over $180 million) as hackers took swift action to move these funds out of the system using PIX, a Brazilian instant payments system.

To this end, the attackers exploited the popularity of this payment system and laundered the funds to several cryptocurrency exchanges that support this feature. A portion of the money was exchanged for Bitcoin and Tether USDT through these Brazilian platforms.

SmartPay CEO Rocelo Lopes criticized the vulnerability of the Brazilian banking system.

In a statement provided to the Brazilian Journal, he emphasized:

The heart of the problem lies in messaging. If they don’t change this, it will happen again and other institutions are in trouble. It really hits me that there are no security protocols in place to stop this.

Read more: Brazilian government opens contracts to monitor cryptocurrency transactions