Patrick Walsh, Managing Director at Decoded, reflects on how the speed, scale, and creativity of cybercrime in Latin America is unlike anything we’ve seen before.
I’ve just come off the keynote stage at Mastercard’s Latin America co-brand conference, where I spoke to leaders from airlines, banks, hotels, and travel companies about scams, cybercrime, and the dark web. I want to share a few reflections, because the fraud landscape across Latin America isn’t just evolving, it’s accelerating. And if you’re not having real conversations about what’s happening, you’re going to fall behind.
Latin America is one of the most connected regions on the planet. Internet penetration in the region rose from 43% to 78% in under a decade, surpassing even China. That digital connectivity has unlocked new possibilities but it’s also opened the floodgates to fraudsters.
We’re not just talking about phishing emails anymore. We’re talking about:
– Social engineering via WhatsApp voice notes.
– Deepfakes bypassing facial recognition in banking apps.
– Lightning kidnappings powered by Brazil’s real-time payment system, Pix.
– Ransomware attacks grounding Latin American airlines.
– Loyalty points stolen and resold on dark web marketplaces.
These aren’t fringe cases. They’re systemic issues and they’re profitable. One phishing campaign targeting Mexican citizens defrauded over 4,000 victims out of more than $55 million USD using fake tax receipt emails and IP-based targeting. In Brazil, scams involving Pix now account for 70% of reported fraud losses, with criminals forcing victims to make instant transfers under duress. And loyalty schemes? They’re becoming a second currency. Criminal forums openly sell tens of thousands of stolen points gathered from airline and hotel accounts compromised via phishing or credential stuffing.
What stands out is how hyper-local the tactics are. Voice messages in Spanish, phishing kits designed to mimic Latin American banks, fraud schemes tied to real government programs like Brazil’s “Desenrola” debt relief initiative. But the infrastructure behind these scams is global.
Portuguese and Spanish language dark web forums are thriving. Fraud-as-a-service models are on the rise. One Mexican hacker known as “Neo_Net” ran an SMS phishing subscription service, complete with templates tailored to local banks. In early 2025, 39 million records from Brazil’s social security compensation system were leaked and offered for sale online just days after the breach.
Let’s talk scale:
– Brazil’s financial institutions lost R$10.1 billion to digital fraud in 2024, a 17% increase from the prior year, according to FEBRABAN.
– Mexico now accounts for over 55% of all cyberattacks in the region, due to its growing logistics and industrial profile and proximity to the U.S.
– Latin America’s payment card fraud rate is 97% higher than North America’s, and 222% higher than the Asia-Pacific region, making it the most targeted globally.
– 33% of all fraud cases in 2023 across the region were linked to social engineering, phishing, impersonation, and coercion techniques according to BioCatch.
Fraud is no longer a cost of doing business. It’s a full-blown operational and reputational risk.
Cybersecurity isn’t just a technology issue. It’s a human issue. And Latin America’s current wave of fraud is being driven not just by tools, but by tactics that exploit emotion, urgency, trust, and confusion.
If you do business in the region, your fraud prevention strategy can’t just be reactive. It has to be designed around how real people behave and how fraudsters manipulate that behavior.
That means:
– Teaching employees and customers to spot social engineering red flags.
– Investing in behavioural analytics, not just signature based tools.
– Sharing threat intelligence across sectors.
– And rethinking fraud prevention as part of the customer experience, not just a backend control. This includes investing in fraud prevention training that equips teams to respond to evolving threats in real-world situations.
The good news? We’re seeing action. Argentina’s major banks have launched an interbank anti-fraud network to stop scams in real-time. Brazil’s central bank has issued new rules on anti-scam controls. Governments are stepping up enforcement. But more collaboration is needed and fast.
Because here’s the truth: the fraudsters are innovating together. If you don’t match that energy, you’re always going to be one step behind.
This is just the start of the conversation. If you’re interested in how we’re helping organizations across Latin America and beyond build resilience to scams, cyber threats, and dark web risks let’s connect.
We’re not here to deliver generic cybersecurity training. We offer considered fraud prevention training that helps your teams understand the mindset of a modern fraudster and build strategies that actually work.
Message me directly or get in touch via Decoded.com
If you’d like to learn more about Decoded and how we can help transform your
organisation, we’d love to hear from you.
