Losses from electronic fraud increase 36% in the first half of 2011

Tuesday, August 23, 2011

Losses due to fraud in electronic transactions in Brazil's banking industry increased 36% to 685mn reais (US$427mn) in the first half of 2011 compared to 504mn reais in the same period last year, Brazilian banking association Febraban said in a statement.

The increase was attributed to the increasing use of electronic systems as a form of payment, the lack of a legal framework that inhibits questionable actions through effective punishments, and some users' neglect regarding security, according to Febraban technical director Wilson Gutierrez.

The cloning of magnetic strips in banking cards and phishing to steal passwords and sensitive information, in the case of internet transactions, remain the main causes of banking fraud through electronic systems.

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Febraban has called for a law that specifically punishes online and electronic fraud to keep up with the growth of the national electronic market.