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Paraguay Faces One of Its Worst-Ever Cybersecurity Breaches
In what could be the most significant cybersecurity breach in Paraguay’s history, 7.4 million records containing personally identifiable information (PII) of its citizens have been leaked on the dark web. The American cybersecurity firm Resecurity discovered this massive data dump, with hackers demanding a ransom of \$7.4 million — effectively \$1 per citizen — to halt the leak. The attack culminated in the public release of the data just before a symbolic deadline on Friday, June 13, 2025.
Cybercriminals, identifying themselves as “Cyber PMC” (Cyber Private Military Company), published the stolen databases via underground forums and torrent files, making the data easily accessible via peer-to-peer (P2P) networks — a tactic previously used by the notorious LockBit 3.0 group to avoid takedowns. The group not only attacked Paraguay’s infrastructure but also launched a psychological war by accusing its leaders of corruption and poor data stewardship.
The breach reportedly originated from multiple government agencies, including:
Agencia Nacional de Tránsito y Seguridad Vial
Ministry of Public Health and Social Welfare
An undisclosed PII-storing government system
This is not an isolated incident. Earlier in 2025, Paraguay faced two major breaches:
- Superior Tribunal of Electoral Justice (TSJE) exposed information on over 7 million people.
- Another breach hit the Ministry of Finance, Central Bank, and Itaipú, revealing sensitive financial records.
Even in 2023, a breach at the National Police revealed criminal records and mugshots of detained individuals.
Although the Paraguayan government has refused to pay the ransom, it has offered only vague public statements without technical explanations. Suspicion of foreign involvement is high. Notably, in 2024, a Chinese-linked group known as Flax Typhoon infiltrated Paraguayan government networks using sophisticated APT (advanced persistent threat) strategies, but no leaks occurred from that intrusion.
Paraguay’s pro-Taiwan stance — as the only South American country recognizing Taiwan’s independence — may have geopolitical implications. China’s known cyber-espionage campaigns against Taiwan’s allies add a complex layer to this breach, potentially indicating state-sponsored motives masked under cybercrime tactics.
💬 What Undercode Say: The Real Cost of Paraguay’s Digital Exposure
This cyberattack goes far beyond stolen files —
Here’s what makes this case more alarming:
Scale: This is a 100% population-scale leak — rare in global terms. For context, this would be akin to the entire population of Switzerland having their data exposed.
Political Undercurrents: The attackers’ messaging, blaming leadership for corruption, signals a shift in cybercrime tactics — blending hacktivism with extortion. This destabilizes public trust.
Symbolic Timing: The June 13 deadline was not random. Its choice of a Friday hints at psychological pressure — triggering panic just before the weekend, where incident response teams are thinnest.
Cyber PMC Branding: The term “Cyber Private Military Company” is chilling. It presents cybercrime as militarized business, potentially hinting at mercenary work on behalf of state actors.
Torrent Distribution Strategy: Releasing torrents sidesteps government control and censorship, ensuring mass propagation. The files are now likely mirrored and shared endlessly, rendering containment impossible.
Repetition and Escalation: Paraguay’s repeated breaches within two years suggest either:
Persistent infiltration (backdoors still active), or
Chronic structural cybersecurity failures.
Flax
International Consequences: This breach won’t only affect Paraguay’s internal politics — it’s now a case study in international cybersecurity policy, especially in Latin America. Expect increased scrutiny from U.S., Taiwan, and regional coalitions.
Motive-to-Profit Mismatch: If this were purely about money, the \$7.4M price tag is laughably low for an entire nation’s data. This discrepancy strongly implies that profit wasn’t the real motive — disruption was.
Lack of Transparency: The
This event underscores a digital paradox: Data sovereignty without cyber resilience is a hollow notion. Paraguay — and by extension, similar developing nations — must rethink their cyber architecture, adopt zero-trust models, and seek global cyber alliances to withstand future attacks.
🔍 Fact Checker Results
✅ Leak confirmed by Resecurity and corroborated by multiple cybersecurity forums.
✅ Data distributed via torrent, ensuring wide dissemination.
❌ No confirmation that the attackers are state-sponsored, but geopolitical links are plausible.
📊 Prediction: A New Frontline in Cyber Cold Wars
The next 6–12 months could mark the escalation of cyber offensives in Latin America, especially targeting countries aligned with Taiwan or Western alliances. Expect:
More nation-scale breaches with symbolic ransoms.
Sophisticated APTs disguised under cybercrime branding.
Paraguay being used as a testbed for similar campaigns in neighboring states like Uruguay or Bolivia.
The digital battlefield is no longer theoretical. Paraguay just became ground zero.
References:
Reported By: securityaffairs.com
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