Cybersecurity risks will rise in Mexico

Subject

Cybersecurity risks.

Significance

Hackers stole an estimated 300 million pesos (15 million dollars) from Mexican financial institutions in April and May 2018, exploiting vulnerabilities in third-party software. Cyberattacks are an emerging critical risk for the financial sector not just because of the business impact of any losses but also because of the increased media attention and reputational damage attacks bring.

Impacts

• The rise of mobile and online banking and new third-party applications, raise new challenges for the financial sector.
• Insurance firms will see more demand for cybersecurity insurance but are yet to develop a complete understanding of relevant risk models.
• Total prevention of cyberattacks is unrealistic, making the ability of systems to respond and recover crucial.