May 9, 2023
Reading time • 5 min
Gatonet: Meet the cable TV scam and the gang that made over half a million from it
After arresting two people in the city of Carapicuíba (SP) on charges of sharing IPTV (Internet Protocol Television) lists, which allows free consumption of paid virtual content, the São Paulo Public Prosecutor’s Office and the Civil Police discovered the formation of a gang that made BRL 550,000 per month selling so-called “gatonet” packages.
Detained in the operation “Not Found”, the suspects are accused of crimes of copyright infringement, money laundering and criminal organisation. According to article 184 of the Brazilian Penal Code, those who resell this type of clandestine streaming can receive a penalty of three months to one year in detention, or a fine.
According to the Carapicuíba Prosecutor’s Office, the two suspects sold an IPTV system at a value of BRL 25.00. After purchasing the service, customers had access to more than 300,000 exclusive content from closed channels or streaming services.
The payment for the service was made via PIX in the account of “oranges”, that is, secondary persons. Customers then had to install an app on their Smart TV or TV box and enter a login and password provided. Those who hire this type of service may be liable for the crime of unauthorised interception or reception.
“Although the amount charged for each access to the Pirate IPTV list is not high, criminal associations make exorbitant profits, given the very high adherence achieved. It is important to note that part of this money is laundered and hidden, giving the appearance of lawfulness, through the purchase of real estate, for example “, said promotoa Sandra Reimberg, to the Tilt website.
According to the investigation, the resale of this content worked as a pyramid scheme, so that the “head” of the organisation could not be reached easily. “It is a wholesale and retail logic. A person who has an IPTV centre sells access for a low price to retailers, like BRL 3. [Resellers] set up operations to reach as many customers as possible, selling at BRL 25. The guy who is up there is protected, because the intermediary hardly shares his contact with others,” the prosecutor explained.
