Understanding CPF and CNPJ in Brazil: Protecting Against Fraud with SERPRO’s Unique Solutions KYC KYB AML

Brazil stands as a leader in digital innovation, yet faces significant challenges when it comes to identity verification. The CPF (Cadastro de Pessoas Físicas) and CNPJ (Cadastro Nacional da Pessoa Jurídica) play crucial roles in the daily life of Brazilians, but their widespread use makes them common targets for fraud. Understanding how these identifiers work and the risks involved is key to combating fraud in Brazil’s dynamic digital landscape.

What is the CPF?

The CPF is a unique identification number issued to every Brazilian resident by the Federal Revenue Bureau, similar to the Social Security Number (SSN) in the U.S. This number is necessary for everything from opening a bank account and filing taxes to online shopping and renting cars. However, unlike the SSN, the CPF is not confidential. In Brazil, you may be asked to provide your CPF for routine transactions, like buying groceries or using public Wi-Fi. This widespread use exposes CPF numbers to fraudsters.

CPF fraud is rampant, with scammers frequently stealing CPF numbers through phishing or malware attacks. A particularly troubling fraud involves using the CPF numbers of deceased individuals. Criminals exploit the time gap between a person’s death and when fraudulent systems are updated with this information. During this window, scammers may use a deceased person’s CPF to obtain loans or make unauthorized purchases.

However, SERPRO’s "Consulta CPF" API significantly minimizes this risk. Our solution has access to the most updated information from the Federal Revenue, allowing businesses to verify if a CPF is active or if the holder has passed away. With near real-time updates of death records, the vulnerability window for this type of fraud is drastically reduced, offering enhanced security for businesses relying on accurate and timely data. The "Consulta CPF" API returns crucial information, including CPF number, name, date of birth, registration status (active, canceled, or suspended), and whether the individual is a minor, providing a comprehensive view of the person's identity.

What is the CNPJ?

In addition to CPF, businesses in Brazil are identified by their CNPJ, the national registry for legal entities. Much like the Employer Identification Number (EIN) used in the U.S., the CNPJ is required for all business activities, including opening bank accounts, registering with government agencies, and hiring employees. The CNPJ not only serves as an identifier but also provides essential data for business verification.

SERPRO’s "Consulta CNPJ" API enables businesses to access comprehensive information about a company, including its name, shareholder information, registered address, phone numbers, registration status, important dates, etc. This information is vital for Know Your Business (KYB) processes, ensuring that businesses are legitimate and in good standing before engaging in financial or contractual transactions.

Static vs. Dynamic Data in Identity Verification

One key challenge in identity verification is the reliance on static data, like CPF or CNPJ numbers, which are fixed and do not change. Static data, while important, is vulnerable to theft or misuse because it is easily replicated or stolen. In contrast, dynamic data—such as email addresses, phone numbers, or IP addresses—changes over time and can be used to detect fraudulent activities more effectively. By evaluating dynamic data elements, companies can more accurately assess the risk of fraud and ensure that identities are being used by legitimate individuals.

SERPRO’s Datavalid Solution: Biometric Validation

To go beyond static data, SERPRO offers Datavalid, a robust tool that adds an extra layer of security through biometric validation. Datavalid allows companies to verify individuals not only by their documents but also through facial recognition and fingerprint authentication. By comparing the individual’s biometric data with official government databases, Datavalid ensures that the person is who they claim to be, drastically reducing the risk of identity theft or fraud.

Combating Fraud in Brazil with SERPRO - KYC KYB AML

Fraud is a persistent issue in Brazil. From January to November 2022, Brazilians faced over 3.6 million identity fraud attempts, or one every eight seconds. This highlights the urgent need for robust identity verification solutions. SERPRO is uniquely positioned to address this challenge because, as a government entity, we have direct access to official databases and can provide real-time verification. Our services, used in over 37 countries by more than 26,000 clients—including global companies like Uber—are designed to meet Know Your Customer (KYC), KYB, and Anti-Money Laundering (AML) compliance requirements.

In Conclusion

While CPF and CNPJ are essential tools for identity verification in Brazil, relying solely on static data cannot effectively combat fraud. SERPRO’s innovative solutions—Consulta CPF, Consulta CNPJ, and Datavalid—provide access to the most up-to-date information and leverage advanced biometric technologies, ensuring that businesses can securely and accurately validate their customers and partners. By combining real-time data with dynamic elements like biometrics, SERPRO drastically reduces the risk of fraud in Brazil’s digital economy.