It seems that wherever opportunities for innovation and technological developments arise, cyber attacks are not far behind. Latin American countries are certainly seeing this trend emerge in their markets.
Latin America may not be the first region that comes to mind when one thinks of technology and innovation. Indeed, Latin America has progressed at a much slower rate than other regions of the world. Recent indicators, however, suggest that Latin America is making up for lost time in the information and communications technology (ICT) sector, with an increase in Internet access, science and engineering degrees, and e-commerce across the region.
This growth is variable. Chile, Argentina, and Brazil have the highest Internet penetration, while Colombia, Mexico, and Panama have high potential for growth. And ICT growth goes hand-in-hand with better economic conditions and reduced crime and conflict. For example, the Wall Street Journal and Citi announced in 2012 that Medellin, Colombia—once known primarily for homicides, drug trafficking, and other variables of organized crime—was the most “Innovative City of the Year.” According to the Inter-American Development Bank, a 10 percent increase in broadband penetration results in 3.2 percent growth in GDP.
As technology spreads throughout the region, cyber threats have also been on the rise in Latin America, for both governments and business. Member Countries of the Organization of America States, on average, saw an increase in the number of attacks on computer systems and a trend toward more sophisticated intrusions from 2013 to 2014. In the private sector, the energy sector emerged as the most vulnerable to attacks, with communications and finance and banking closely behind.
“One of the major challenges Latin American and the Caribbean countries face in combatting threats to cybersecurity is generating political will,” Belisario Contreras, the Cyber Security Program Manager at the Organization of the American States, told The Cipher Brief. Indeed, many Latin American and Caribbean countries do not have comprehensive national cybersecurity strategies and therefore lack the infrastructure to protect against such attacks. This is troubling for the U.S. because of its connectivity with Latin American economies; an attack on the energy sector in one country, for example, may have a debilitating effect on those in others.
The Cipher Brief experts agree that Latin American countries have a long way to go before the proper infrastructure and strategies are in place to protect against cyber threats. Paul Caiazzo, Principal and co-Founder of TruShield Security Solutions, Inc., says the key is education and awareness across all sectors. It is due to this lack of understanding that companies have become increasingly vulnerable to attacks. By engaging the private sector and increasing information sharing, all segments of a society can enhance preparedness to prevent or respond to a cyber attack.
The Cipher Brief experts also agree that the risks should not deter businesses from operating in Latin America. For those organizations looking to expand their businesses into or invest in Latin America, there are many private sector options for protection. The use of anti-malware software and a breach detection system are two such options to help build defenses. And the more that are adopted, the better the opportunity will be to take advantage of the growing ICT opportunities in Latin America.
Alana Garellek is an International Producer with The Cipher Brief.
