Hackers help destroy the Amazon rainforest

Feature story - December 12, 2008
High-tech smuggling operations may not be what you'd normally associate with the ongoing clearance of the Amazon rainforest, but logging companies intent on plundering it for timber have been using hackers to break into the Brazilian government's sophisticated tracking system and fiddle the records.

Staff at the federal prosecutor's office surrounded by legal documents relating to the hacking fraud

To monitor the amount of timber leaving the Amazon state of Pará, the Brazilian environment ministry did away with paper dockets and two years ago introduced an online system. Companies logging the rainforest for timber or charcoal production are only allowed to fell a certain amount of timber every year and this is controlled by the use of transport permits issued by the state government's computer system.

To be exported from Pará, each shipment of timber requires one of these transport permits, and the volume of timber in each shipment is deducted from the total amount allowed under the company's forest management plan. Once that amount is reduced to zero, no more transport permits are issued so there's no profit in felling more trees.

Brazil, the world's "hacking capital"

At least, that's what's supposed to happen. But today the public prosecutor will release details of how hackers employed by 107 logging and charcoal companies have compromised the system, falsifying online records to increase the timber transport allocations for certain areas of the forest. In the past, Brazil has been called the world's hacking capital and has a history of criminal gangs hacking into bank computer systems to engage in large-scale online fraud.

Hacking has led to 1.7million cubic metres of timber being illegally smuggled out of Amazon

The result of the Amazon hacking scandal is that nearly 1.7 million cubic metres of illegal timber have been smuggled out of the Amazon, enough to fill 780 Olympic-sized swimming pools. The sums of money involved are also huge, and the public prosecutor is suing the companies responsible for 2 billion reais (US $833m). According to federal prosecutor Daniel Avelino, many of these companies have a track record of illegal practices: "Almost half of the companies involved in this scam have other law suits pending for environmental crimes or the use of slave labour, amongst other things."

Investigation started in April 2007

Police started investigating the suspect hackers in April 2007, swooping in a couple of months later to arrest 30 ring leaders. One is still in jail - the intermediary who brought the hackers and the loggers together - in total, 202 people are facing prosecution.

André Muggiati, campaigner in our Amazon office in Manaus, told me they have flagged up potential security holes in the past. "We've pointed out before that this method of controlling the transport of timber was subject to fraud. And this is only the tip of the iceberg, because the same computer system is also used in two other Brazilian states."

"By hacking into the permit system, these companies have made their timber shipments appear legal and compliant with the forest management plans. But in reality, they're trading illegal timber which is making the problem of deforestation worse, and a lack of control and policing in the areas they're logging means they think they can get away with it."

Scandal comes as Brazilian national congress prepares to vote on forest code

If this scandal weren't bad enough, it comes as the Brazilian national congress prepares to vote on a change to the country's forest code which could massively increase the amount of legal logging that will be allowed.

At the moment, land owners in the Amazon are able to clear trees from 20 per cent of their property but if the proposed changes are adopted, it will raise that to 50 per cent. Given the contentious nature of land ownership in the region, no one knows exactly the damage this will cause but as deforestation rates are once again on the increase, it's certain to push them up even further.

Brazil must adopt a zero deforestation plan

This scandal of loggers and hackers just demonstrates that the Brazilian government is failing to protect the Amazon forest from logging companies determined to break the law. If the rainforest is to have any long-term future, the only answer is to adopt a zero deforestation plan, like the one we and other campaign groups think is needed, setting ambitious targets to bring deforestation under control. Otherwise illegal logging and corporate fraud such this will continue to be a massive problem.

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