According to an assessment by the Inter-American Bank and the Organization of American States, the Latin America and Caribbean (LAC) region needs to be better equipped to deal with cyberattacks. Cybercrime primarily takes the form of hacking strategies such as malware, phishing and denial-of-service (DoS) attacks. In addition, the region’s growing consumer preference for mobile payments increases the need for application security as app-based payments become more widespread, and investment in the creation of payment applications rises. The main drivers of the Latin American cybersecurity industry have been the use of new technologies such as IoT, Big Data and cognitive intelligence, and the acceptance of cloud-based managed services. In some countries such as Brazil, the pressure to implement IoT solutions as part of digital transformation programs is growing rapidly and disrupting the Latin American industry. Brazil is the largest revenue-generating country in the Latin American cybersecurity sector. Brazilian companies are investing aggressively in cybersecurity solutions and services to secure corporate systems and comply with new regulations. This is justifiable, as the country recorded the fourth highest number of cyberthreats in Latin America in the first half of 2024, according to a study by Eset Research.
Brazilian investment in cybersecurity is mainly driven by the private sector, including banking and financial services, e-commerce, telecommunications and more. The government sector accounts for around 20% of the Brazilian cybersecurity market. Argentina and Mexico are also investing heavily in the field of cybersecurity, in terms of both tools and training.