At the height of the pandemic, a police detective in Rio De Janeiro, Brazil discovered a different kind of outbreak. Reuters reported that while investigating service outages in a low-income, urban neighborhood, detective Gabriel Ferrando found that a new service provider, funded by an accused drug and arms trafficker with ties to a Brazilian crime syndicate, was now in charge.
Ferrando uncovered that the new ISP on the block was up and running using stolen equipment, including some from broadband provider TIM SA. According to Ferrando, residents could sign up for the service or do without the internet.
Reuters reported that Fernando asked state prosecutors to pursue charges against the alleged pirates in February. To date, no charges have been filed.
Ferrando’s case is not an isolated one in Brazil. According to Reuters investigations, “people and documents described an audacious takeover of internet service in dozens of neighborhoods in Brazil’s major cities by companies associated with alleged criminals.” These bad actors use force and intimidation to push out rivals and generate millions of dollars by providing second-rate broadband networks to tens of thousands of residents. Bootleg providers can be unresponsive regarding service issues while pressuring customers to pay fees by knocking on doors.
According to Brazilian authorities and telecom executives, theft and destruction of telecommunications equipment and infrastructure increased by 34 percent from 2019 to 2020, representing $194 million in losses. Reuters reported that in the first half of 2021, that number increased by another 16 percent.
How does the ISP takeover occur in low-income, urban neighborhoods? Thieves steal or vandalize equipment belonging to legitimate broadband operators, according to the account. When repair technicians arrive to investigate issues, they are chased away by armed men. Then, fraudulent telecom companies, consisting of drug and weapons trafficking gangs and shady businesspeople, use the existing infrastructure to set up shop.
According to Oi SA, one of the country’s largest ISPs, “no-go” zones for technicians in Rio now total 105 locations. In addition, Rio state prosecutor Antonio Pessanha said there are ongoing investigations regarding “crooked employees of major providers” who assist the criminal element. “The new gold for the criminal underworld,” he said, “is the internet.”
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