Brazil’s Central Bank Announces New Tool to Prevent Fraud

In a significant move to combat financial fraud and identity theft, the Brazilian Central Bank has announced a new tool within its Meu BC platform that will allow individuals and legal entities to block unauthorized bank account activity.

Formalized under Resolution 475, the initiative introduces a “profile lock” mechanism, similar to a credit freeze in the United States. Starting in December, users will be able to proactively indicate whether they authorize new account activities. They can prevent new accounts from being opened in their name, control whether someone can be added as a joint account holder, and specify whether new representatives can be appointed to their company’s accounts.

The new feature also provides flexibility and transparency. Users can unlock their profiles at any time, with changes taking effect immediately. For example, someone could temporarily disable the block to open a new account, then reactivate it afterward. In addition, individuals will have access to a log of all authorization checks made by banks or other institutions.

Meanwhile, financial institutions will be required to consult the database to verify a person’s profile status before opening new accounts or making changes. This added step ensures that no account activity occurs without the explicit authorization from the account holder.

The Central Bank’s initiative marks a major step forward in protecting personal and business financial accounts in Brazil. As fraud tactics grow more sophisticated, this measure offers a practical and effective way to strengthen account security. One might only wonder why it took so long.