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There are only two types of companies in today鈥檚 digital age. Those that have been hacked, and those that will be hacked. Three, if we add those who have been hacked but just don鈥檛 know it.

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Emerging markets in Latin America and beyond are the most vulnerable to hacks and breaches because, on a general cybersecurity level, they鈥檙e playing catch up. As it stands, Latin America does not yet have the strong cybersecurity foundation it needs to protect its businesses鈥� futures.

At the same time, Latin America is becoming an even more attractive location for cybercriminals as an unprecedented amount of money is pumped into its companies. Local startups raised a record-breaking $9.6 billion in the first half of 2021, per 附近上门 data, and has just announced a new multibillion-dollar fund for the region.

Latin America urgently needs to generate better cybersecurity solutions to ensure the longevity of the next generation of businesses. But more than that, we鈥檙e looking at a giant opportunity in the making.

The fact that Latin America is on a back foot actually means it has the unique chance to build a sturdier cybersecurity infrastructure from the ground up, maximizing the potential of today鈥檚 frontier technology in a way more developed markets can鈥檛. And it can export those solutions to the world.

This is how I see Latin America鈥檚 promising cybersecurity scenario unfolding, if all the players put their best foot forward.

Frontier technology needs to be starting point

Earlier this year, the EU鈥檚 cybersecurity agency warned that traditional cybersecurity mechanisms are against today鈥檚 fast-evolving attacks.

Emerging markets are already at the cutting edge of new technologies, from neo banks that give citizens more options for entering the financial system, to B2B startups smoothing the path for businesses across industries. As they lay the groundwork in these new niches, they should also be adopting technologies that are moving at the same pace as cybercrime.

One of the most essential innovations is that of unique 鈥渙nline personas.鈥� When each of your banks, payment platforms and e-commerce sites has a totally separate user identity for the same person, every single one of those platforms is a point of entry for a hacker to steal your identity or commit fraud. But when your identity is a singular, decentralized 鈥減ersona,鈥� you alone are the point of entry to that online ID.

Technologies like blockchain are making it possible for your identity to be truly sovereign鈥攗nique and controlled by you鈥攂ecause it鈥檚 near impossible for hackers on the blockchain to clone or breach that information. And other emerging technologies, such as advanced anti-phishing software like , are removing the risk of human error in losing that information online.

Emerging markets could spearhead progress

When companies in developed markets prop up their digital defenses, they鈥檙e building on existing cybersecurity structures, which cybercriminals also know their way around. Or, they鈥檙e having to build a new cybersecurity structure around existing products while keeping those products up and running. That鈥檚 like having an old house, realizing the foundation is falling apart, and trying to rebuild the foundation while keeping the rest of the house intact.

Retroactively applying cybersecurity protections has huge stakes. For SMBs, it means taking time to integrate better solutions to their e-commerce site; for banks, it’s about reinventing their defenses while never compromising the funds millions of people have entrusted to them.

But emerging markets have the advantage of bypassing antiquated cybertech and moving straight onto today鈥檚 most unbreachable鈥攁nd scalable against future iterations of cybercrime鈥攖echnologies, and that should not be underestimated.

Latin America is equipped to thrive in the space

A big part of Latin America’s growth is resilience. Emerging market startups have to deal with far more pressures鈥攎oney, governance, socioeconomics鈥攎eaning they have to innovate while building sustainably from Day One.

What does that mean for cybersecurity in the region? This resilience coupled with the urgency of cybercrime will push Latin America鈥檚 phenomenal tech talent to the forefront of a wave of new technologies. The cybersecurity industry is growing in to the point that it is drawing investment away from Silicon Valley. And the pot is getting bigger: VC funding in cybersecurity reached a stunning $9 billion in the first half of 2021鈥攎ore than for all of 2020.

Businesses in Latin America are already breaking new ground. The alliance鈥攆ocusing on the Latin American and Caribbean ecosystems鈥攊s seeking to better integrate blockchain technology into organizations and countries, and is working toward a sovereign ID based entirely on blockchain. Argentina has been moving toward the sovereign ID concept with the consumer app , which connects transactions of the country鈥檚 major banks on a single platform.

Government and private businesses need to collaborate

As entrepreneurs seek solutions, governments must help create an open-minded ecosystem in which young companies are encouraged to move past existing infrastructure limitations and into little-explored territory.

Government bodies can offer financing strategies, from supporting local investment funds to attracting foreign VCs with conferences, incentives and awareness campaigns, and spotlighting today鈥檚 most prominent digital startups to nurture those of the future.

It鈥檚 also crucial that governments foster better education on IT security among youths. Nor can countries forgo updating their laws around privacy, user consent, or right to be forgotten. This isn鈥檛 just about bringing them up to speed鈥擜rgentina鈥檚 data protection law is 20 years old鈥攊t鈥檚 about unifying regulations across countries, so that tomorrow鈥檚 life-changing technologies can be truly borderless.

Finally, private businesses must have an ongoing dialogue with governments on cybersecurity and technological progress, providing constant feedback and acting as a source of current information on trends that will help the government regulate and enable the tech space.

Cybersecurity is one of today鈥檚 most critical needs. But it is also a source of opportunity in a region that has the talent, will and potential to construct a far more modern and impenetrable security infrastructure on a blank slate.

is founder and CEO of cybersecurity company . The company provides cybersecurity solutions for fraud prevention and ID protection. Its core offering is the 鈥渙nline persona鈥� which unifies people鈥檚 identities, allowing for their ID to be authenticated continuously based on behavior, biometric, location and more.

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