Brazilian companies with annual revenue above US$1 million (R$5.6 million) may have lost at least US$100,000 — over R$565,000 — to virtual criminals, according to the Brazil Fraud Industry Pulse Survey 2025 conducted by Veriff, an Estonian unicorn specializing in digital fraud prevention and cybersecurity. The study reveals that online fraud impacted the revenue of more than 80% of Brazilian companies.
The financial impact of digital fraud on Brazilian businesses is significant: over one-fifth (20.5%) of Brazilian professionals surveyed reported losing at least 10% of revenue due to fraudulent activities. This number puts Brazil ahead of countries like the United States (13.5%) and the United Kingdom (9%), highlighting the seriousness of the local scenario — a loss that often compromises investments, operations, and growth.
This scenario underscores the urgent need for companies to implement stronger digital security measures. In fact, 79.5% of Brazilian experts state that their clients are demanding more effective fraud prevention strategies, signaling a shift in behavior and a growing awareness of online risks. As a result, consumer trust has become a strategic asset, and meeting expectations regarding security is now a clear competitive advantage.
AI: a double-edged sword
Artificial intelligence (AI) has played an increasingly ambiguous role in the digital security landscape, being used by both criminals and companies. Although intelligent and ethical use of AI can be crucial to safeguarding data, reputation, and revenue, Veriff’s research shows that 69% of experts have seen an increase in fraudsters’ technology use. At the same time, 69.5% of companies are also adopting AI to enhance their digital security.
The most common types of fraud in Brazil
Veriff’s research identified the three main types of fraud affecting Brazilian companies. The most frequent is malware (53%), which uses malicious software to infiltrate systems, steal data, and spy on operations—often without being detected. In second place is document fraud (40%), involving the use of forged or altered documents to simulate legitimate identities and access financial services. Lastly, authorized fraud (36%) occurs when the customer is deceived—usually through phishing—to approve a fraudulent transaction, making this type of scam particularly difficult to identify and reverse.
The data underscores the urgent need for more robust identity verification solutions and better digital education among users to prevent financial losses.
Web Summit Rio 2025: Fraud prevention is not just a technology but a culture
The participation of Veriff in Web Summit Rio 2025 further reinforces the alert raised by the company’s latest research. Kaarel Kotkas, founder and CEO of Veriff, participated in the panel Scamdemic: How fintechs are fighting back (How fintechs are reacting), alongside Rodrigo Tognini (Conta Simples) and Lucas Vargas (Nomad), moderated by Kimberley Waldron (Started PR). They emphasized how every fraudster has something in common: a bank account, thus the need to think like a fraudster. ‘They share information quickly and attack on a large scale. Just as criminals act in an organized way, the financial and technological sector also needs to evolve in collaboration and information sharing to protect the ecosystem as a whole,’ highlighted Kaarel.
The CEO of Veriff explained that fraud prevention should not only be seen as a technology or business strategy issue but as part of the companies’ culture. He stated that ignoring this need could put a significant portion of the companies’ revenue at risk. This impact also falls on the end consumer, who ends up bearing higher costs to cover the losses generated by fraud: ‘Honest users end up paying a kind of ‘trust tax’ to cover the actions of bad actors,’ he assessed.
Kotkas also drew attention to the effects of digital trust loss: ‘If a person falls victim to a financial scam, they tend to avoid the entire sector for a good amount of time. Therefore, preserving trust in the online environment is crucial to ensure that innovation continues to bring benefits to society.’
When addressing the new challenges in the sector, Kaarel also pointed out that the solutions that worked in the past are no longer sufficient in the face of the rapid evolution of fraudsters. “Frauds evolve very fast and criminals have access to the most modern tools, and they use them.”
According to him, Brazil is a clear example of these transformations and challenges. He highlighted the innovation in the country’s financial system, such as the advancement of Pix and the use of biometric databases for identity verification. However, he warned that relying solely on one technology, such as biometrics, can be risky: “No isolated solution is sufficient, so it is essential to combine biometrics with behavior analysis, contextual data, and multiple verification points to strengthen security, as falsification techniques are very advanced,” he explained.
The specialist warned about the rapid pace of new payment methods and the risks they bring. “Instant payments mean instant frauds. If payments are fast, responses to fraud also need to be even faster,” he concluded.
On the last day of the event (April 30), Kaarel will also participate in the panel “Can we trust a fully digital government?”. The session will bring together experts in cybersecurity and AI ethics to analyze the opportunities and challenges of building fully digital government infrastructures, as well as discussing whether these systems can indeed be secure or if they open the way to potential cyber threats.
Opening of a technological hub in Sao Paulo reinforces Veriff’s commitment to Latin America
As part of its global expansion strategy and increasing focus on the Latin American market, Veriff’s participation in Web Summit Rio 2025 was marked by the inauguration of its first technological hub in Brazil. The new headquarters, which had an investment of R$ 17 million (US$ 3 million), is strategically located on Avenida Paulista, in São Paulo — one of the world’s main economic hubs, known for its mature ecosystem of talents, technology hubs, infrastructure, and investments.
The opening event brought together business leaders and authorities from Estonia and Brazil. Kaarel Kotkas, along with Roberta Guedes, Head of Regulatory Compliance and Privacy Manager at iBetta, and Diego Perez, president of ABFintechs, participated in the panel “Unlocking business growth with real people in the AI era”, moderated by Maurício Guidi, partner at Pinheiro Neto law firm.
This strategic move comes after a significant period of growth in the region, with Veriff seeing over a 2.5-fold increase in business volume in Latin America in the past year. The company’s arrival in Brazil is part of a strategic plan to get closer to local customers, understand the specific needs of the Latin American market, and expand its presence with regional roots.
