Brazilian companies with annual revenue above $1 million (R$5.6 million) may have lost at least $100,000 — over R$565,000 — to cybercriminals, according to the research 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 over 80% of Brazilian companies.
The financial impact of digital fraud on Brazilian businesses is significant: more than one-fifth (20.5%) of surveyed Brazilian professionals reported losing at least 10% of revenue due to fraudulent activities. This places Brazil ahead of countries like the United States (13.5%) and the United Kingdom (9%), highlighting the severity of the local scenario — a loss that often compromises investments, operations, and growth.
This scenario underscores the urgent need for companies to implement more robust digital security measures. Indeed, 79.5% of Brazilian experts state that their clients are demanding more effective fraud prevention strategies, signaling a behavioral shift and growing awareness of online risks. As a result, consumer trust has become a strategic asset, and meeting security expectations is now a clear competitive advantage.
AI: A double-edged sword
Artificial intelligence (AI) has played an increasingly ambiguous role in digital security, being used by both criminals and businesses. While the intelligent and ethical use of AI can be crucial for protecting data, reputation, and revenue, Veriff’s research shows that 69% of experts observed an increase in the technology’s use by fraudsters. At the same time, 69.5% of companies are also adopting AI to strengthen 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 undetected. Second is document fraud (40%), which involves using forged or altered documents to simulate legitimate identities and access financial services. Finally, authorized fraud (36%) occurs when customers are deceived — typically through phishing — into approving fraudulent transactions, making this type of scam particularly difficult to identify and reverse.
The data reinforces 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 technology, but a culture
Veriff’s participation in Web Summit Rio 2025 further highlights the warning 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 responding), alongside Rodrigo Tognini (Conta Simples) and Lucas Vargas (Nomad), moderated by Kimberley Waldron (Started PR). They emphasized how all fraudsters have one thing in common: a bank account, hence the need to think like a fraudster. “They share information quickly and attack at scale. Just as criminals act in an organized manner, the financial and tech sectors must also evolve in collaboration and information sharing to protect the ecosystem as a whole,” Kaarel stressed.
Veriff’s CEO explained that fraud prevention should be seen not just as a technology or business strategy issue, but as part of company culture. According to him, ignoring this need could jeopardize a significant portion of companies’ revenue. This impact also falls on end consumers, who end up bearing higher costs to compensate for fraud losses: “Honest users end up paying a kind of ‘trust tax’ to cover the actions of bad actors,” he noted.
Kotkas also drew attention to the effects of losing digital trust: “If someone suffers a financial scam, they tend to avoid the entire sector for a long time. That’s why preserving trust in the online environment is crucial to ensure innovation continues to benefit society.”
Addressing the sector’s new challenges, Kaarel also pointed out that solutions that worked in the past are no longer sufficient given fraudsters’ rapid evolution. “Fraud evolves very quickly, 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 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, like biometrics, can be risky: “No single solution is enough, so it’s essential to combine biometrics with behavior analysis, contextual data, and multiple verification points to strengthen security, as forgery techniques are very advanced,” he explained.
The expert warned about the rapid pace of new payment methods and the risks they bring. “Instant payments mean instant fraud. If payments are fast, fraud responses must be even faster,” he concluded.
On the event’s last day (April 30), Kaarel will also participate in the panel “Can we trust a fully digital government?” (Can we trust a fully digital government?). The session will bring together cybersecurity and AI ethics experts to analyze the opportunities and challenges of building fully digital government infrastructures, as well as discuss whether these systems can truly be secure or if they open the door to potential cyber threats.
Opening a tech hub in São Paulo reinforces Veriff’s commitment to Latin America
As part of its global expansion strategy and growing focus on the Latin American market, Veriff’s participation in Web Summit Rio 2025 was marked by the inauguration of its first tech hub in Brazil. The new headquarters, with an investment of R$17 million ($3 million), is strategically located on Avenida Paulista in São Paulo — one of the world’s leading economic hubs, known for its mature ecosystem of talent, tech hubs, infrastructure, and investments.
The inauguration event brought together business leaders and authorities from Estonia and Brazil. Kaarel Kotkas, alongside 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.
This strategic move follows a period of significant growth in the region, with Veriff recording a more than 2.5-fold increase in business volume in Latin America over the past year. The company’s arrival in Brazil is part of a strategic plan to get closer to local clients, understand the specific needs of the Latin American market, and expand its presence with regional roots.
