In Brazil, Some Internet Providers Suspected of Organized Crime Ties
2022-03-30
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1As the people of Rio de Janeiro sheltered at home last year during Brazil's COVID-19 outbreak, a police official found something unusual about a local internet service.
2The internet was suddenly unavailable across one poor neighborhood.
3Detective Gabriel Ferrando later found that armed men had chased away a technician from internet service provider TIM SA.
4A new internet provider had claimed the area.
5It was a company that officials believe has ties to drug dealers and arms sellers.
6It also is believed to have links to Brazil's criminal organization, the Red Command.
7Those living in the area could get internet from the new company - or do without it.
8TIM later released a statement asking the country's law enforcement to protect established internet companies.
9Ferrando continued to investigate and, in a report after months of work, he asked government lawyers to take action.
10But, so far, officials have done nothing.
11Reuters continued the investigation and found that internet service in many neighborhoods in Brazil's major cities has been taken over by suspected criminals.
12They reportedly are not afraid to use threats and violence to control internet service.
13Now, tens of thousands of Brazilians have poor-quality internet service that makes millions of dollars for suspected criminals.
14Customers report they sometimes face someone at their door with a demand for the monthly payment.
15There's "pressure to pay on the day that they choose with no delay," said one customer, who did not want his name used.
16In 2020, Brazilian households with an internet connection grew by more than 12 percentage points to 83 percent.
17That is the most recent information available from Cetic.br, an information technology organization.
18But criminals, also called pirates, are stealing equipment from real providers to create their internet services.
19Feninfra, an industry group, said robbery and destruction of telecommunications equipment rose 34 percent in 2020 from 2019.
20That is equal to about $194 million in yearly losses.
21Brazil has criminal groups that control water and electricity services, but now they are entering the business of technology.
22This is how they do it.
23First, they steal or damage equipment belonging to traditional internet service providers.
24When repair teams arrive, they are chased away by armed men who warn them not to come back.
25These so-called no-go areas have increased by 300 percent since 2019.
26Without competition, the criminals can charge a lot of money for poor-quality service.
27Often, the criminals will get help from a corrupt worker at one of the big internet companies, said Rio de Janeiro state prosecutor Antonio Pessanha.
28In one recent case, an employee of internet provider Claro, offered to sell company equipment to organized criminals, Pessanha said.
29His office recorded the criminals' telephone discussions by getting a court order.
30In the Morro da Formiga neighborhood, detective Ferrando said he began receiving information in the first half of 2021.
31It was from people who said internet services had stopped working.
32The company that controlled the area, JPConnect, was established in 2019. Reuters examined its public documents.
33Those records show that until late last year JPConnect was part-owned by Paulo Cesar Souza dos Santos Jr.
34Officials said he is a member of Red Command.
35In January, police officers searched JPConnect's headquarters in Morro da Formiga.
36Ferrando said they found stolen equipment belonging to large technology companies.
37Marcos Ferrari is the head of the Brazilian telecommunications trade association Conexis.
38He said the industry in Brazil faces robbery, destruction of property, and threats to employees.
39Officials must "inhibit this type of criminal action," Ferrari said.
40In Rio de Janeiro there are several other internet providers under investigation for links to criminals, officials said.
41The provider Net&Com was raided by police in March 2021. Police have publicly stated that they are investigating the firm.
42They suspect it is paying criminals with the Red Command to help them take over internet services in poor neighborhoods throughout the Rio de Janeiro area.
43Pessanha, the state prosecutor, said the investigation continues.
44"The new gold for the criminal underworld," he said, "is the internet."
45I'm Susan Shand.
1As the people of Rio de Janeiro sheltered at home last year during Brazil's COVID-19 outbreak, a police official found something unusual about a local internet service. 2The internet was suddenly unavailable across one poor neighborhood. Detective Gabriel Ferrando later found that armed men had chased away a technician from internet service provider TIM SA. 3A new internet provider had claimed the area. It was a company that officials believe has ties to drug dealers and arms sellers. It also is believed to have links to Brazil's criminal organization, the Red Command. Those living in the area could get internet from the new company - or do without it. 4TIM later released a statement asking the country's law enforcement to protect established internet companies. 5Ferrando continued to investigate and, in a report after months of work, he asked government lawyers to take action. But, so far, officials have done nothing. 6Reuters continued the investigation and found that internet service in many neighborhoods in Brazil's major cities has been taken over by suspected criminals. They reportedly are not afraid to use threats and violence to control internet service. 7Now, tens of thousands of Brazilians have poor-quality internet service that makes millions of dollars for suspected criminals. Customers report they sometimes face someone at their door with a demand for the monthly payment. 8There's "pressure to pay on the day that they choose with no delay," said one customer, who did not want his name used. 9In 2020, Brazilian households with an internet connection grew by more than 12 percentage points to 83 percent. That is the most recent information available from Cetic.br, an information technology organization. 10But criminals, also called pirates, are stealing equipment from real providers to create their internet services. Feninfra, an industry group, said robbery and destruction of telecommunications equipment rose 34 percent in 2020 from 2019. That is equal to about $194 million in yearly losses. 11Brazil has criminal groups that control water and electricity services, but now they are entering the business of technology. 12This is how they do it. 13First, they steal or damage equipment belonging to traditional internet service providers. When repair teams arrive, they are chased away by armed men who warn them not to come back. These so-called no-go areas have increased by 300 percent since 2019. Without competition, the criminals can charge a lot of money for poor-quality service. 14Often, the criminals will get help from a corrupt worker at one of the big internet companies, said Rio de Janeiro state prosecutor Antonio Pessanha. In one recent case, an employee of internet provider Claro, offered to sell company equipment to organized criminals, Pessanha said. His office recorded the criminals' telephone discussions by getting a court order. 15In the Morro da Formiga neighborhood, detective Ferrando said he began receiving information in the first half of 2021. It was from people who said internet services had stopped working. The company that controlled the area, JPConnect, was established in 2019. Reuters examined its public documents. 16Those records show that until late last year JPConnect was part-owned by Paulo Cesar Souza dos Santos Jr. Officials said he is a member of Red Command. 17In January, police officers searched JPConnect's headquarters in Morro da Formiga. Ferrando said they found stolen equipment belonging to large technology companies. 18Marcos Ferrari is the head of the Brazilian telecommunications trade association Conexis. He said the industry in Brazil faces robbery, destruction of property, and threats to employees. 19Officials must "inhibit this type of criminal action," Ferrari said. 20In Rio de Janeiro there are several other internet providers under investigation for links to criminals, officials said. 21The provider Net&Com was raided by police in March 2021. Police have publicly stated that they are investigating the firm. They suspect it is paying criminals with the Red Command to help them take over internet services in poor neighborhoods throughout the Rio de Janeiro area. 22Pessanha, the state prosecutor, said the investigation continues. 23"The new gold for the criminal underworld," he said, "is the internet." 24I'm Susan Shand. 25The Reuters News Agency reported this story. Susan Shand adapted it for Learning English. 26__________________________________________________________________ 27Words in This Story 28technician -n. a person whose job relates to the practical use of machines or science in industry, medicine 29customer -n. someone who buys goods or services from a business 30household -n. the people in a family or other group that are living together in one house 31inhibit -v. to keep (someone) from doing what he or she wants to do 32We want to hear from you. Write to us in the Comments Section, and visit our Facebook page.