Cyberattack Disrupts Brazilian Financial Infrastructure, Central Bank Investigates

Brazilian technology services provider C&M Software, which supports smaller financial institutions lacking proprietary connectivity infrastructure, was targeted by a cyberattack involving fraudulent client credentials. The breach prompted Brazil's central bank to order C&M to suspend access for financial institutions to its systems temporarily, although C&M's critical infrastructure remained operational throughout. Several financial entities, including Banco Modal Partners, reported unauthorized access to their reserve accounts used for interbank settlements at the central bank, but client accounts and internal balances were not compromised. Authorities, including the central bank and São Paulo state police, are investigating the incident, and C&M has activated all necessary security protocols. Despite the disruption, the financial impact is expected to be limited, as C&M serves around two dozen smaller institutions, and no losses have been reported by clients. C&M has since resumed operations after receiving clearance from the central bank.