Cybersecurity Investment Urgent as Latin America Faces More Risks

The average global cost of a data breach has registered its first decrease in five years, reaching US$4.44 million, driven by AI adoption, according to IBM's 2025 Cost of a Data Breach Report. However, this global trend masks an intensification of operational and economic risks for companies in Latin America. The industrialization of cybercrime and a growing talent gap demand a new focus on security in Latin America, shifting it from a cost center to a fundamental strategic investment.

“Cybersecurity is like the brakes on a car: it is not there to stop you, it is there to give you the control and confidence to move forward safely,” says Guillaume Noé, Head of Cyber Resilience of the Queensland Government. 

Cyber risks present an economic threat of unprecedented magnitude. Projections from Cybersecurity Ventures indicate that global costs associated with cybercrime will reach US$10.5 trillion annually by the end of 2025. Latin America faces a particularly complex environment. The region faces a sustained increase in both the volume and sophistication of cyberattacks. This scenario is aggravated by an estimated deficit of 329,000 cybersecurity professionals, according to ISC2’s 2024 Global Cybersecureity Workforce study.

This confluence of factors places the region in what could be defined as a "risk incubation period." Although the average cost of a data breach in Latin America is approximately US$3.22 million, lower than the global average, this figure can be misleading. Leading risk indicators, such as the 15% increase in regional victims named on extortion sites, suggest that the actual risk is escalating rapidly. The calculated cost of cyberattacks in the region is likely attenuated by a less stringent regulatory framework and potential underreporting of incidents. This masks a latent vulnerability that, if unaddressed, will result in significantly higher financial and operational costs in the medium term.

In response, the cybersecurity market in the region is projected to grow from US$21.6 billion in 2024 to US$40.9 billion by 2033, reflecting a growing awareness of the need for investment. Strategic security investments do not restrict operations, but catalyze innovation and growth in a high-risk digital environment. 

From Threat Analysis to Strategic Investment

Phishing has consolidated itself as the most frequent infiltration method, responsible for 16% of data breaches globally, reports IBM. However, malicious insider attacks represent the costliest vector, averaging US$4.92 million per breach, which highlights the criticality of internal security controls. In parallel, supply chain compromise is the second most expensive vector and the one that requires the most time to contain. This mode of attack has seen an alarming increase in Mexico, where 68.8% of organizations reported being victims of these attacks in 2024.

Given this landscape, the allocation of limited resources must be based on a structured framework. The National Institute of Standards and Technology’s (NIST) Cybersecurity Framework offers a methodology to align investments with business objectives and risk tolerance. The process involves defining a security profile, establishing a desired target profile, and, through a gap analysis, identifying and prioritizing the security initiatives with the greatest impact. This approach allows security leaders to justify investments to senior management using the language of business risk, rather than purely technical metrics.

Evidence shows that investment in certain areas generates a significantly higher return. The application of AI and automation in security operations is the single most impactful investment. IBM's shows that organizations which extensively adopt it save an average of US$1.9 million in breach costs. Second, given that 68% of breaches involve a human factor, investing in continuous employee training and awareness programs directly addresses one of the main causes of incidents. Finally, the implementation and regular testing of an Incident Response (IR) Plan can reduce the costs of a breach by an average of 58%.

Looking toward 2026, investment trends are shaping up around three main axes. First is the AI arms race, where the technology is both an attack tool and a pillar of defense. Deep Instinct’s Voice of SecOps 2024 report indicates that 59% of professionals cite AI-powered social engineering as a primary threat. "Shadow AI," or the unsanctioned use of AI tools, is already a factor in 20% of breaches, demanding investment in the governance of this technology.

Second, a paradigm shift is observed from reactive defense to Threat Exposure Management, a proactive approach focused on remediating risks before they are exploited. Finally, within this proactive approach, Identity Exposure Management (IEM) emerges as a critical area. Since stolen credentials remain a primary cause of breaches, IEM, which focuses on protecting exposed identities, could be a strategic investment with a potential return of 321%, according to Forrester.

As cyber risks rise in Latin America, strategic investment becomes more crucial than ever. Mexico Cybersecurity Summit 2025, to be held on Oct. 22, will bring together industry leaders, CISOs, and policymakers to explore how AI, proactive threat management, and shared defense strategies can help organizations mitigate escalating regional risks. Discover how your organization can strengthen resilience and turn security into a strategic advantage at https://mexicobusiness.events/cybersecurity/2025/10.