Last Friday, hackers tried to steal about 420 million reais (about $77 million) through Brazil’s fast-growing Pix payment system. The attack hit Sinqia, a financial technology provider owned by Evertec (EVTC), a transaction processing business in Latin America that runs systems for several banks. According to reports, approximately 380 million reais were allocated to HSBC Holdings Plc (HSBC), and around 40 million reais to fintech Artta.
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The Brazilian central bank stepped in quickly and blocked roughly 350 million reais before transfers were processed. HSBC later said that no customer accounts or funds were harmed. Sinqia noted that the breach was limited to Pix and that no personal data was leaked. The company took Pix offline and is now rebuilding the system with stronger controls. It will only go live again once regulators review and approve it.
Growing Concerns Over Instant Payments
The case comes amid numerous attacks on the financial and technological industries, and just two months after hackers hit another Pix provider, C&M Software, in July. That event also involved hundreds of millions of reais. Now, this new breach highlights that banks and fintechs in Brazil continue to face ongoing risks when integrating with instant payment networks.
Evertec bought Sinqia in late 2023 and remains a key supplier for Brazil’s digital banking framework. The company is working with experts and the federal police to investigate the event. For now, losses appear contained, but investors may note that repeated strikes on Pix providers could weigh on trust in one of the country’s most important financial tools.
Is EVTC Stock a Buy?
On the Street, Evertec boasts a Moderate Buy consensus, based on the ratings of five analysts covering the stock. The average EVTC stock price target stands at $39, implying a 9.30% upside from the current price.
