Financial Crime World

Panama Faces Cybercrime Threat as Financial Sector Expands

A Growing Concern in Panama’s Financial Hub

Panama’s high internet penetration rate and advanced fiber-optic connections have created a cybercrime hotspot, with financial institutions being prime targets. The country’s economy, based on services that account for nearly 80% of its GDP, is vulnerable to digital espionage, disruption of online services, and cyber threats.

Cybersecurity Challenges in Panama

  • According to the 2019 OECD report, Panama has a sound governance framework for developing digital government, but its cybersecurity institutions are still in development stages.
  • The government has taken steps to combat cyber threats by passing a Personal Data Protection Law in 2019, which came into effect in March 2021.

Key Findings and Threats

The Computer Security and Incident Response Team of Panama (CSIRT) under the Government Innovation Authority (AIG) has highlighted key findings related to cybersecurity in Panama, including:

  • The significant threat posed by professional criminals and state actors.
  • Digital attacks being used to influence democratic processes.
  • Vulnerability of the Internet of Things, which has resulted in disruptive attacks.

The demand for cybersecurity services and software has increased dramatically over the past two years, with 794 complaints reported in 2021 alone, 68% of which were scams. Leading cybersecurity companies such as:

  • Fortinet
  • Palo Alto Symantec
  • McAfee

have dominated the market, while Israel-based CSI, ObserveIT, and Guardicore are also major competitors.

U.S. Companies Hold Significant Share

Despite the lack of tangible figures on the size of the Panamanian cybersecurity market, experts believe that U.S. companies hold a significant share.

Opportunities for U.S. Cybersecurity Companies

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

Conclusion

As Panama continues to grow as a financial hub, its vulnerability to cybercrime will remain a significant concern. It is essential that the government and private sector work together to develop robust cybersecurity measures to protect against these threats.