Why Will Investment in Cybersecurity Increase in 2024?

Different reports, including one by the firm Accenture, revealed that there is vulnerability regarding cybersecurity in Latin America. Only in the first half of 2023, the region was affected by more than 63 billion cyberattacks, with Mexico and Colombia among the most affected. 

These reports indicate that more than 50% of organizations are increasing their investment in cybersecurity as an essential part of their digital transformation; however, 55% of companies are still vulnerable to effective cyberattacks. Of the region as a whole, Mexico, Colombia, Argentina, Chile and Brazil are the most affected countries, highlighting the urgent need for more robust security strategies adapted to the regional reality.

Gartner projects that global end-user spending on security and risk management will total US$215 billion in 2024, an increase of 14.3% over 2023, when cybersecurity spending was estimated at US$188 billion.

Particularly in Mexico, according to Digital Trust Insights 2024, 85% of organizations will increase their cybersecurity budget in 2024. This is due to the fact that in the country the most prominent risks are those related to the digital, technological and cybernetic sphere.

The digital transformation of companies generates a larger surface of exposure and possible attack. Investment in cybersecurity is aligned to the digital transformation, increasing awareness of the need but also the complexity of implementing it. It is very important to have a clear strategy for control and management of cybersecurity, where control implementations can be performed optimally, economically and be technologically effective. This is a challenge for organizations, from investing more to investing better to obtain results that help organizations to have a better level of cybersecurity and more controlled risk.

The first is the increase in ransomware attacks and their evolution, and the second is the protection of information and operations in the cloud. As organizations migrate more services and applications to the cloud, cybercriminals change their tactics to exploit a wider attack surface. They can detect vulnerabilities in the system to steal credentials or compromise information, while ransomware seeks to encrypt information and then demand a ransom to release it, although cybercriminals rarely return that information 100 percent. 

There are reports showing an increase in ransomware attacks and an increased risk to sensitive data in the cloud. Nearly half of IT professionals surveyed (47 percent) believe security threats are increasing in volume or severity, with 48 percent reporting an increase in ransomware attacks. Thirty-seven percent have experienced a data breach in the past twelve months, including 22% who report that their organization has been the victim of a ransomware attack.

PWC's Digital Trust Insights 2024, Mexico edition, shows that Mexican companies need to be aware that the complexity of the digital environment opens the door to new risks. The survey results show that in the next 12 months, 59% of participants will seek to mitigate their technological and digital risks, while 45% will do what is necessary to mitigate hacks, ransomware or cyber-surveillance. 

Meanwhile, the threats most connected to digital risks, according to the response of Mexican executives, are inflation 50% and macroeconomic volatility 38%. Companies in Mexico and the world seek to innovate and transform their business models to remain relevant in an increasingly digital business landscape. While technologies such as cloud computing represent an engine of growth, they also impose a risk and an increase in significant cyber vulnerabilities, as highlighted by more than half of the respondents. 

As technology advances, the tactics of cybercriminals also evolve. Cybersecurity has become a digital contest and in this confrontation, Artificial Intelligence (AI) emerges as a formidable ally. It should be recognized that AI is more than a tool; it is a resource that can be employed by any faction, whether with benevolent or malicious intentions. Using complex algorithms and machine learning, AI has the ability to predict threats and adapt to them, allowing individuals and organizations to stay ahead of this ever-changing landscape. 

The impact of AI on cybersecurity is of concern to businesses around the world, with half of executives worried about the advances it can produce in crimes such as phishing, malware or fake information from deepfakes, a World Economic Forum survey indicates.

The World Economic Forum itself notes that technological development is making the cyber equity gap more pronounced within and between countries. This makes everyone more vulnerable, even the best protected organizations. This situation puts cybersecurity in fourth place among the global risks of 2024.

There is one aspect that should not be overlooked and that is the internet of things and in this area we can highlight that in 2024 the Cyber Trust Mark program will be launched in the US, which seeks to certify and label IoT devices as secure. These devices are often not adequately protected, making them quite attractive to cybercriminals.

The aim is to require manufacturers and distributors to implement information protection and incident detection controls, as well as to provide continuous software updates. Failure to comply with requirements such as these would mean that their products would not be labeled as secure, which would greatly affect their reputation.

We see that cybersecurity will be a relevant investment issue for companies in 2024, every day managers recognize the importance of shielding their digital assets; not only for operational issues, cyberattacks can also affect the reputation and image of businesses, so you should properly evaluate who you hire to take care of your cybersecurity.