International Bank Fraud Ring Dismantled by German and Brazilian Authorities

German and Brazilian police have dismantled an international bank fraud ring responsible for a €30 million cyberattack on a German financial institution. The operation, named "Klonen," resulted in the arrest of four individuals in Brazil, with three more suspects being pursued in Spain and Bulgaria.

The investigation began in late 2023 when attackers exploited a vulnerability in the booking process of a German payment service provider. According to authorities, the attackers took advantage of a flaw caused by a faulty software update, which allowed them to make numerous unauthorized withdrawals within just four days.

The damage from this cybercrime is estimated to be in the millions. Investigators revealed that the group laundered the stolen funds through a complex network, primarily sending the money to Brazil, where it was cashed out after attempts to obscure its origin. A smaller portion of the funds was funneled through similar schemes in four other European countries.

The Brazilian Federal Police reported that the criminals used payment cards issued without the consent of the beneficiaries, as well as pass-through accounts, companies, payment institutions, and virtual asset platforms to move and conceal the funds.

Notably, one of the suspects had run for elected office in 2024, allegedly financing part of the campaign with the stolen money. A Brazilian federal court has ordered the seizure of financial assets, vehicles, and real estate valued at approximately R$106 million (around $20.7 million).

Authorities stated that those under investigation could face charges for aggravated theft through electronic fraud, criminal organization, and money laundering, among other offenses identified during the investigation. The operation was conducted by Brazil's Polícia Federal with support from Germany's Bundeskriminalamt (BKA) and the Frankfurt Public Prosecutor's Office's cybercrime unit, ZIT.