Merchants Guide To Fraud In Brazil – Part II

This is Part II of our Merchants Guide To Fraud In Brazil. You can access Part I by clicking here.

We previously covered in Part I of this guide the most common types of online fraud in Brazil and how fraudsters exploit people with specific payment methods. 

In this article, we will cover the nuances of online fraud in Brazil and how your business can protect itself. The sections of this article include: 

• The Role Of CPFs in Online Fraud In Brazil 
• Fraud Prevention In Brazil: How To Protect Your Business

Let’s get started! 

The Role Of CPFs in Online Fraud in Brazil

In Brazil, the CPF (Cadastro de Pessoas Físicas) serves as a unique taxpayer identification number, similar to a Social Security number in the United States. 

Read Also: 

• Payment Regulations In Brazil: Requirements You Need To Meet For Payment Processing In Brazil

Due to its importance in identity verification, CPFs are a target for fraudsters. Fraudsters may use stolen or forged CPFs to create synthetic identities or conduct unauthorized transactions. A CPF’s misuse can lead to long-term fraud issues, as it allows fraudsters to access services and commit crimes that are difficult to trace, such as money laundering.

Fraud Prevention In Brazil: How To Protect Your Business 

Like in most countries, suspicious transactions carried out with credit cards can be blocked by financial institutions to protect users from being victims of fraud. 

But where does fraud prevention stand when it comes to local payment methods, like Pix? 

The Central Bank of Brazil has introduced some measures to help shield Pix users from fraud, like the Special Return Mechanism. In addition, local payment processors also offer tailored solutions that add an extra layer of protection in Pix transactions. 

Let’s dive deeper into these aspects. 

Pix Fraud Prevention: Understanding the Special Return Mechanism

To counter the increasing fraud associated with Pix, the Central Bank of Brazil has introduced MED (Mecanismo Especial de Devolução), or Special Return Mechanism. 

Read Also: 

• Central Bank of Brazil And Febraban To Change Pix Refund Mechanism For Fraud Victims

This policy aims to facilitate the reversal of funds in cases where fraud is detected. MED provides consumers an alternative in the event of fraudulent transactions, allowing Pix transactions to be reversed under specific conditions. 

For merchants, this mechanism adds an extra layer of security when handling Pix payments, helping to reduce losses from fraud and increase user confidence.

Tailored Anti-Fraud Solutions For The Brazilian Market

Working with anti-fraud solutions tailored for the Brazilian market can help your business grow fasterin Brazil. With the advance of Pix, companies can also consider embedding solutions like AML Pix. 

What Is AML Pix?

AML PIX is CommerceGate’s unique solution that enables merchants to create QR codes for specific CPFs, ensuring control over payments and guaranteeing that they come from individuals verified by your team while providing full flexibility in its use.

This significantly reduces the risk of money laundering by preventing the use of anonymous or illicit funds for betting activities.

Furthermore, the solution integrates seamlessly with existing payment infrastructure, streamlining compliance efforts and enhancing transparency in financial transactions.

Read Also: 

• How Your Business Can Tackle Fraud In Brazil With CommerceGate’s AML PIX Solution

The Importance of Choosing a Trusted Payment Partner

For cross-border merchants entering Brazil, selecting a reliable payment partner is crucial to ensure secure transactions and compliance with local regulations. 

CommerceGate’s experience in the high-risk industry, coupled with its localized knowledge of payment methods and fraud trends, positions it as a trusted advisor for international merchants. 

By offering solutions tailored to Brazilian consumers—especially the integration of Pix payments—CommerceGate helps merchants minimize fraud risk while improving payment acceptance rates.

Meet CommerceGate, Your Payment Advisor In Brazil

CommerceGate is your payment adviser in Brazil. We specialize in providing local, robust, and secure payment solutions that support online businesses in Brazil and LATAM. Our services are designed to streamline consumer experience and increase your authorization rates, ensuring speed, security, and transparency.

With CommerceGate, your businesses benefit from:

• Full access to Brazil’s most popular local payment methods, including Pix, Boleto Bancario, and local cards.
• Customized payment solutions catering to operators in Brazil.
• Dedicated Customer Success Managers to get your local solution to the other level of expertise.
• Licensed operations to minimize disruptions, like account blocks.
• Static Pix QR code for repeat payments and an increase of CLTV of up to 7%.

Contact CommerceGate today to learn more about how we can support your success in Brazil or book a call with an Expert in LATAM payments here.