Latin America's Cyber Awakening: Threats and Opportunities

If 2022 taught us anything, it is? that the Latin American cybersecurity landscape is becoming a battleground. Recent numbers suggest a staggering 600% rise in cybercrime in the region, accounting for 12% of all digital crimes globally (more on CiberLatAm). You might not see it, but cyber threats are everywhere—from the banks managing your money to the systems that keep basic services running.

But this isn't just a passing trend; it's a sign of the times.?

As the world rushes to integrate more technology into everyday life, the threats are evolving alongside it. The COVID-19 pandemic only sped this process up, pushing businesses to adopt cloud-based systems, launch e-commerce platforms, and shift to remote work. Naturally, cybercriminals took advantage of the situations, targeting vulnerabilities in this new digital landscape. Adding to the challenge, the rise of AI-driven tools like deepfakes has given scammers even more convincing ways to exploit unsuspecting targets.

Latin America felt this impact in a particularly intense way. The region's rapid embrace of digital transformation—companies moving operations to the cloud and optimizing their processes—made them more efficient, yes, but also more vulnerable to cyberattacks (more on Ciberseguridad). The COVID-driven boom in e-commerce and banking platforms further amplified these risks. The rise of deepfake technology meant that traditional scams could now leverage AI to increase their hit rates, making phishing attempts more convincing and harder to detect.?

But it's not all doom and gloom. This new digital frontier also brings an opportunity to strengthen and innovate cybersecurity across the region.

Let’s start with the basics.

Latin America is diving headfirst into the digital world, with internet penetration reaching 75% by early 2023–even outpacing the global average by 10 points (more on CiberLatAm). And leading this charge are countries like Argentina (87%), Brazil (84%), and Mexico (77%), where digital banking and e-commerce have taken off (more on HLB). COVID-19 sped up this shift even more, and in 2023, e-commerce hit a whopping $500 billion in volume, up 27% from the year before (more on CiberLatAm).

But this rapid digital growth has exposed some serious weaknesses. Latin America is grappling with a lack of clear cybersecurity standards, not enough skilled professionals, limited investment in cybersecurity tech, and a general lack of awareness among everyday users. These vulnerabilities have made the region a prime target for cybercriminals, leading to an alarming rise in attacks.?

Just in 2022, Mexico registered a shocking 187 billion cyberattacks—for reference, the country has a population of just 127.5 million, meaning that, on average, every citizen suffered 1,4666 cyber attacks. Mexico was–, followed by Brazil (103 billion), Colombia (20 billion), and Peru (15 billion) (more on Fortinet Report).?

As shown in the graph below, these numbers are in line with higher cyberattack rates in Latin America, with desktop attack rates in the region equalling more than twice the global average.

The high cyberattack rate, combined with the rapidly expanding digital infrastructure that Latin American businesses increasingly rely on, as well as the previously mentioned weaknesses, should incentivize companies to invest more in cybersecurity and encourage cybersecurity providers to expand their operations.

When we zoom in, the private sector stands out as a prime target for cybercriminals, especially with the rise of remote work in 2020. Public services and infrastructure aren't off the hook either, with military institutions also in the crosshairs, albeit to a lesser extent (more on CiberLatAm). Big-name attacks on places like the Brazilian Presidency show just how vulnerable organizations can be to ransomware (more on Ciberseguridad).

Ransomware, denial-of-service, and phishing aren't just buzzwords—they’re some of the most prevalent attack methods in the region, with a staggering 81% of industrial companies in Latin America reporting ransomware attacks (more on Ciberseguridad).

Governments in Latin America are starting to wake up to the urgency of this issue. Brazil and Colombia, for instance, are ahead of the curve, pushing for the creation of independent national cybersecurity agencies (more on CiberLatAm). The Organization of American States (OAS) has also stepped up, playing a pivotal role in fostering regional cooperation through programs like the Cybersecurity Program and CSIRTAmericas, which help coordinate responses to cyber incidents across member states.

But it's not just about what governments can do. Working together with the private sector is crucial. Take Costa Rica, for example, where partnerships have made a real difference in boosting resilience against cyber threats. Yet, there's a wide gap in cybersecurity maturity across the region. Southern Cone countries are far ahead compared to the Andean, Central American, and Caribbean regions (more on CiberLatAm).

This disparity in preparedness, combined with the high cyber attack rates, presents an opportunity for growth in the cybersecurity sector, especially for companies that can offer services tailored to Latin America's unique vulnerabilities. As businesses increasingly rely on digital operations, the demand for cybersecurity expertise will only grow, creating a fertile ground for innovation and investment.

And that brings us to the opportunities. Investing in cybersecurity infrastructure is key for Latin America to strengthen its defenses. The adoption of cloud-based technologies is already underway, with 82% of organizations either using or planning to implement cloud-based cybersecurity services (more on LATAM CISO Report). But staying ahead of the game means more investment–especially in sectors like finance, energy, and telecommunications.

Another area where there's room for growth is in developing skilled cybersecurity professionals. A shortage of talent is one of the biggest challenges the region faces (more on WEF). The cybersecurity talent shortage in Latin America is quite severe, with the region facing a gap of about 1.3 million professionals as of 2024. This shortfall exacerbates cyber risks and has had significant financial consequences, costing companies more than $1 million per security breach on average (more on Mexico Business News).

Establishing comprehensive training programs could help bridge this gap and build a workforce that's ready to tackle cyber threats head-on. Achieving this will likely require a blend of government investment in education and active initiatives from the cybersecurity private sector to signal demand and incentivize talent development (more on OAS and Cisco Report).

And we also need to talk about regulatory frameworks. Adopting more standardized regulations, like what Uruguay and Colombia are doing with the NIST Cybersecurity Framework, can help Latin American countries protect themselves better (more on LATAM CISO Report). And don't forget about raising public awareness. Campaigns that promote cybersecurity best practices can make a world of difference, especially when educating the public on the dangers of deepfakes in scams.

Thus far, we’ve seen some success stories already. After facing a major cyberattack, Costa Rica declared a state of emergency and developed a national cyber strategy to deal with similar problems in the future (more on LATAM CISO Report). Colombia, meanwhile, took proactive steps by introducing legislation to create a specialized digital security authority.

The CSIRTAmericas initiative, supported by the OAS, has also been a game-changer, helping to coordinate how member states handle and respond to cyber incidents. It’s a solid example of what effective cybersecurity resilience can look like.

So where does this leave us? The state of cybersecurity in Latin America is a mixed bag—there are some big challenges, but there are also huge opportunities. This urgency creates a chance for local and international cybersecurity firms to step up, offer solutions, and tap into a rapidly growing market. Yes, the region has seen rapid digital growth and an uptick in cyber threats, but there’s a real chance to turn things around. By investing in technology, building up a skilled workforce, and implementing effective regulatory frameworks, Latin America can create a safer, more secure digital future. With ongoing efforts and collaboration, the region can face these cybersecurity challenges head-on and come out stronger on the other side, even as threats like deepfakes continue to evolve.

Written by Johan Petersmann