Panama Confronts Cybercrime Threats as Digital Economy Expands

The Rise of Cybercrime in Panama

With a robust internet penetration rate of 70% and a thriving services sector accounting for nearly 80% of its GDP, Panama has become an attractive target for malicious actors. The country’s strategic location, with submarine fiber-optic connections to eight undersea cables and direct links to major economies in the Western Hemisphere, makes it an appealing target.

Developing Digital Government Framework but Lagging Behind on Cybersecurity

According to a 2019 OECD report, Panama has made significant strides in developing its digital government framework. However, its cybersecurity institutions are still in their nascent stages. The national assembly passed a Personal Data Protection Law in 2019, which took effect in March 2021 and regulates the use of personal data and establishes compensation for individuals affected by data breaches.

Key Cybersecurity Findings in Panama

• Professional criminals and state actors continue to pose the greatest threat and inflict the most damage.
• Digital attacks are being used to influence the democratic process.
• The vulnerability of Internet of Things (IoT) devices has led to disruptive attacks that underscore the need for enhanced digital resilience.

Growing Demand for Cybersecurity Services

Panama’s cybersecurity landscape is expected to grow significantly, driven by a surge in cyber attacks and cybercrime over the past two years. In 2021 alone, there were 794 complaints, with 68% related to scams. The demand for cybersecurity services and software has led to significant investment in both the public and private sectors.

Leading Companies Dominate Panamanian Cybersecurity Market

Leading U.S. companies such as Fortinet, Arbor, Palo Alto Networks, Symantec, Cisco, Netscout, and McAfee dominate the Panamanian cybersecurity market, with major competitors emerging from Israel and Europe.

Opportunities for U.S. Companies Offering Cybersecurity Solutions

The Panamanian government’s commitment to digital transformation has created opportunities for U.S. companies offering cybersecurity solutions that prevent and deter cybercrimes. With an increased focus on the disruptive and expensive consequences of cyber threats, both the private and public sectors are likely to invest more in IT security.

Best Prospects in Sub-Sectors

Sub-sectors with best prospects include:

• Risk assessment: Identifying potential vulnerabilities and assessing the likelihood of a cyber attack.
• Anti-malware/virus defense: Protecting against malicious software and viruses that can compromise digital systems.
• Endpoint security: Securing individual devices, such as laptops and smartphones, from cyber threats.
• Vulnerability management: Identifying and addressing weaknesses in digital systems to prevent exploitation by attackers.
• Network security: Protecting computer networks from unauthorized access and data breaches.