US SEC Announces New Cyber Rules: The Week in Cybersecurity

In international news, the US and China battle for cybersecurity investments and partnerships within Latin America. Chainalysis states that cryptocurrency scammers made nearly US$3.3 billion less profits from digital scams in 1H23 in comparison with 1H22. Finally, the US Security Exchange Commission (SEC) announces the adoption of new rules that aim to enhance cybersecurity practices and address potential conflicts of interest associated with the use of AI.

In Mexico, new technologies such as AI, blockchain and open banking are set to revolutionize the banking landscape. 

Ready? This is the week in Cyber.

Mexico and Latin America

AI, Blockchain and Open Banking Permeate Mexican Banking

Mexico’s banking industry is on the brink of transformation, driven by new technologies such as AI, blockchain and open banking. While experts believe AI will be essential for differentiation and attracting customers, blockchain adoption is expected to increase Latin America's banking sector, with Mexico leveraging it to combat cyberthreats and reduce fraud. Finally, open banking will foster collaboration between fintech companies and traditional banks, leading to innovative solutions. However, while these technologies offer significant benefits, data security and privacy remain crucial concerns. 

Latin America: New Battleground for US, China

Latin America has proven a highly appealing landscape for cybercriminals given the region’s old digital infrastructure, rudimentary policy and limited resources. While this environment created a breeding ground for cybercrime, it also attracted the interest of those seeking to invest in the enhancement of cybersecurity, such as the US and China. A couple of months ago, the US urged the Mexican government to enhance its digital security to ensure the safety of US companies establishing operations in the Latin American country. The US argues that if Mexico's cybersecurity defenses are inadequate, it may become a staging ground for attacks on US systems, infrastructure or critical industries.

Global Cybersecurity

Cybercriminals Extort US$175.8 Million Through Cryptocurrency

Illicit cryptocurrency transactions decreased significantly since last year, found Chainalysis’ "Cryptocrime Mid-Year Update" report. The cybersecurity company found that the recent decline in cryptocrime correlates directly with the decrease in profits from those schemes, as cryptocurrency scammers made nearly US$3.3 billion less profits from digital scams in 1H23 in comparison with 1H22. Despite the overall decrease in cryptocrime, the share of cryptocurrency activity associated with illicit conduct has risen for the first time since 2019. The proportion has increased from 0.12% in 2021 to 0.24% in 2022, indicating that illicit transactions are becoming a more significant concern within the cryptocurrency space.

US SEC Announces Cyber Rules 

The US Security Exchange Commission (SEC) announced the adoption of new rules that aim to enhance cybersecurity practices, addressing potential conflicts of interest associated with the use of AI and predictive data analytics by broker-dealers and investment advisers. This measure aims to improve transparency and ensure that investors are promptly informed of any significant cyberattacks that may impact a company's operations or financial standing. Under the proposed rules, firms would be required to evaluate and determine whether their use of predictive data analytics involves conflicts of interest that prioritize the firm's interests over investors'.

Executive Perspective 

Photovoltaic Technologies Gaining Traction in More Markets

The solar market has seen a significant rise in global demand over the past decade, leading manufacturers to invest in R&D to meet this demand. Photovoltaics, for example, has become a mature market, with continuous efforts to reduce costs and improve performance. Latin America has been adopting these new technologies, benefiting from their affordability and contributions to various projects. "However, it will be up to the manufacturers, together with people’s experiences and nature, to always explore other technological alternatives to improve the efficiency and quality of their products," says Francisco Miguel Alcalde, Country Manager, Astronergy. 

The Relevance of Innovation, Technology in Business and Industry 

Digital transformation integrates technology into all aspects of a business, leading to increased efficiency, improved communication and enhanced customer experience. While there are positive implications such as increased efficiency and a competitive advantage, there are also negative implications like job losses and cybersecurity risks. In Mexico and Latin America, challenges include limited technology infrastructure, a shortage of digital skills, resistance to change and cybersecurity vulnerabilities. However, "enterprises that do not invest in technology, cybersecurity and process automation can hardly stay afloat against the competition," says Fernando Thompson, Chairman, TBSek.