Mexican Auto Sector Sees 225% Surge in Cyberattacks

The automotive sector in Mexico has experienced a surge in cyberattacks over the past three years, with a 225% increase, positioning it among the top three most targeted industries both nationally and globally. According to the Global Automotive Cybersecurity Report by Upstream, automotive companies faced an average of 225 cyberattack attempts daily in the past year alone, with 50% classified as potential incidents of significant or widespread impact.

Jonathan Parada, cybersecurity and privacy partner, PwC, highlighted Mexico's critical role in the automotive supply chain, warning, "The rise in cyberattacks poses a risk to the industry's development." Mexico's automotive sector contributes 18% to the manufacturing GDP and 3.57% to the national GDP, making it the leading vehicle manufacturer in Latin America and the seventh globally, according to the Mexican Automotive Industry Association (AMIA).

With major players like Audi, GM, Ford, Honda, KIA, Nissan, Toyota, and Volkswagen driving the sector, approximately 86.4% of all businesses within the industry's supply chain experienced at least one cyber attack attempt in the past year.

"A cyberattack could not only halt production for days or weeks but could also result in millions of dollars in losses and reputational damage”, said Víctor Ruiz, founder, Silikn.

PwC's study revealed that companies have lost up to $999,000 due to data breaches, with estimates suggesting potential losses exceeding US$20 million in the automotive industry due to its economic impact. The primary vulnerability lies within automotive suppliers, as highlighted by PwC experts. 

These suppliers are in the early stages of digitalization and lack adequate mechanisms to fend off cyberattacks. Parada emphasized, "Cybercriminals have exploited this weakness, launching continuous attacks on the automotive industry, which is at high risk of breach due to these security gaps."

Without prompt implementation of cybersecurity strategies throughout the automotive industry and its supply chain, Parada warned of an impending crisis, describing the situation as a "ticking time bomb" given Mexico's status as the country with the highest number of cyberattacks globally.

According to the Cyberthreat Defense Report by Nekt Group, Mexico witnessed over 290 billion cyberattack attempts in 2023, affecting 97% of companies at least once throughout the year. Despite a return to office environments, the trend of increasing cyberattacks persists due to insufficient investments in cybersecurity measures.

Upstream's 2024 Global Automotive Cybersecurity Report anticipates a continued rise in large-scale cyberattacks, necessitating expanded coverage to monitor API threats and the incorporation of AI-based tools by cybersecurity teams to combat emerging threat vectors.