Introduction

The massive region is home to over 20 million firms, as well as a booming tech and e-commerce scene. The latest data also shows that the region is attracting more foreign investment than ever before. In 2022, the FDI in LATAM equalled 208 billion dollars - a 51% rise from the previous year.

The economic opportunities and the potential for growth is massive, but it will require that the right digital systems are put in place to meet international standards and enable efficiency.

Implementing proper cybersecurity across the entire region will be essential in this digital transformation to ensure growth. Without it, everyone – businesses, governments, individuals – is put at risk. 

The cost of cybercrime in LATAM

In general, cybersecurity in LATAM has not quite kept up with the digital transformation of the region and the evolving sophistication of cybercrime.

In the first half of 2022 alone, there were over 137 billion registered cyberattack attempts in the region. The actual number is likely a lot higher than this as these are only the identified and registered cases. Many attacks are still taking place under the radar.

And the cost is high ...

The Latin America and Caribbean Network Information Center (LACNIC), estimates that cybercrime costs the region up to 90 billion dollars per year.

If we think of this is in terms of foreign investment, that is 43% of foreign investment lost to cybercrime. Let that sink in for a moment.

Types of cybercrime in LATAM

The most common type of cybercrime in the LATAM region is ransomware, a form of cyberattack which mostly targets businesses by encrypting company data to prevent system access until a ransom is paid.

You can think of ransomware as a digital kidnapping of your business. As most businesses' operations today happen online, this form of cyberattack can be crippling as it brings business to a stop until the issue is resolved or the ransom is paid.

Ransomware has in fact gotten so advanced in the region that it now constitutes an industry of its own known as RaaS or Ransom as a Service, in which cybercriminals are selling ransomware to third parties for a commission. 

But ransomware is not the only kind of cybercrime taking place.

The LATAM region has also seen a rise in other kinds of attacks like:

  • Malware attacks
  • Distributed Denial of Service (DDoS) attacks
  • Phishing
  • Social engineering

And some countries are targeted more than others; usually the ones with the most booming trade and business sectors.

That's where the money is.

The countries most affected by cybercrime in LATAM

When it comes to cybercrime, the most targeted countries in LATAM are:

  • Brazil
  • Mexico
  • Colombia
  • Peru

Colombia just recently experienced a massive ransomware attack which affected more than 50 state entities and private companies, including several hospitals and the judicial branch.

The attack in Colombia highlights the digital interconnectivity of the region. It targeted a single company called IFX Networks, which provides web hosting services in 17 countries.

This means that the impact of the attack was not limited to Colombia. Everyone using IFX Networks to host their website was put at risk and it is estimated that up to 762 businesses across the region were affected.

It just goes to show that in the digital world that we inhabit, borders do nothing to keep cybercrime at bay. It is very much like a virus in that way – unstoppable once it starts spreading. 


What can be done to prevent future cyberattacks in LATAM

The attack in Colombia and its impact across the entire region shows the need for a regional approach to cybersecurity.

It is not enough for individual entities or countries to act. Regional standards like those set by GDPR in Europe and the US must be implemented in LATAM to ensure everyone has a high degree of protection.

If the attack on IFX Networks tells us anything, it is that if one is vulnerable, everyone is.

It will take a united effort from all the countries in LATAM implementing a high level of cybersecurity to tackle cybercrime effectively across the region.