Crime costs Brazilian industry at least R$107 billion a year in direct losses and prevention expenses, according to a survey by the National Confederation of Industry, or CNI, Brazil’s main industrial lobby.
The survey, conducted with 1,398 companies in 32 industrial sectors between November 3 and 12 last year, found that more than one-third of manufacturers had been affected by illegal activity in the previous two years. The costs include cargo theft, theft of raw materials, piracy, smuggling, illegal electricity connections and the sale of goods that fail to meet technical or safety rules.
Most of the burden comes before a crime happens. CNI estimated that companies spend about R$68.5 billion to R$68.8 billion a year on prevention, including private security, electronic monitoring, cybersecurity and personal protection. Direct losses from criminal acts were estimated at R$39.1 billion a year.
“Those are resources that could be redirected to new investment, jobs and improved production,” Fabrício Silveira, CNI’s industrial policy superintendent, told Folha de S.Paulo.
Cargo theft was the most frequently cited offense, affecting 32 percent of companies hit by illegal activity. In Rio de Janeiro state alone, the state industry federation Firjan estimated losses of R$314 million in 2025, with an average of eight trucks attacked each day.
The second most reported problem was the sale of products that do not comply with technical regulations, cited by 29 percent of affected firms. The category includes goods sold without mandatory certifications, proper labeling or required quality standards. CNI says the practice creates unfair competition because companies operating legally must bear the cost of testing, certification and compliance.
The impact varies by company size. About 25 percent of small firms, 32 percent of medium-sized firms and 33 percent of large firms reported disruption from illegal activity. But the proportional hit to revenue was heavier for small and medium-sized businesses: losses averaged 0.6 percent of annual net revenue for small companies and 0.8 percent for medium-sized ones, compared with 0.4 percent for large companies.
CNI said smaller firms have less room to absorb fixed costs, weaker access to credit and fewer tools to prevent or respond to crime. Brazil’s micro and small companies account for about 44 percent of the country’s industrial businesses, according to 2024 data from Sebrae, the Brazilian small-business support agency.
Among companies affected by crime, 50 percent cited loss of gross revenue as the main consequence. Loss of market share came next, at 30 percent, followed by higher security costs, at 28 percent, and additional legal expenses, at 10 percent.
CNI said some losses may be linked to organized crime, especially in sectors such as fuel and beverages, but the survey did not measure that share. Silveira said companies can usually quantify the damage they suffer, but not identify who is behind it.
The industry’s preferred response is stronger enforcement. Seventy-seven percent of companies said inspection and control measures are the main way to fight illegal markets, while 46 percent cited intelligence operations and 36 percent supported tougher legislation.
The survey also found that 41 percent of companies believe state public-security agencies, such as Brazil’s civil and military police forces, most need reinforcement. The Federal Police and the Federal Revenue Service followed, cited by 38 percent and 36 percent, respectively, because of their roles in fighting organized schemes and policing ports, airports and borders.
Sources: Folha de S.Paulo, Poder360 and CNI-linked industry publications.