Mexico: Cyber Crimes Likely to Escalate, Threatening National Security and Financial Interests

DTOs, such as the Jalisco New Generation Cartel (Cártel de Jalisco Nueva Generación, CJNG) and Sinaloa Cartel (Cártel de Sinaloa, CDS), have leveraged new technologies, such as artificial intelligence and cryptocurrency, to expand the reach of their illicit activities. Criminal groups have enhanced their ability to conduct online scams and extortion operations, using deepfakes posing as legitimate businesses or law firms to defraud victims of large amounts of money. This creates serious reputational risk for companies operating in Mexico, as victims may believe it was the business that conducted the scam rather than DTOs posing as it. DTOs have also increasingly used cryptocurrencies to launder such ill-gotten money more effectively, making it easier for the groups to move large amounts of money without being detected by authorities. 

In addition to targeting businesses, DTOs also target the state in cybercrimes; military officials stated April 25 that they were investigating an elaborate network of hackers connected to CJNG that attempted to breach multiple national security agencies, along with PEMEX, the state-owned oil company that is a major supplier to international markets. As existing technologies evolve in capability, threat actors are highly likely to escalate their activities over the coming months. 

Although there have been recent legislative proposals to enact a concrete cybersecurity law, which would include provisions to create a National Cyber Security Agency and cybercrime prosecutors, these have struggled to gain momentum. The government has not indicated that it wishes to pass comprehensive cybersecurity legislation and is unlikely to do so unless there is a greater push in Congress. As a result, the government's cybersecurity response will likely be fragmented over the coming months, lacking a clear legal framework to enforce cybersecurity regulations and punish crimes of this nature. 

While authorities have taken measures to combat emerging cyber threats, threat actors will likely escalate cybercrimes over the coming months. External threat actors, hacktivists, and criminal organizations have effectively leveraged new technologies to enhance their capabilities to commit crimes against Mexican assets and data in the public and commercial sectors without detection from security forces. While the government has increased funding and created new offices to safeguard the country's cybersecurity, such efforts will unlikely be effective in the coming months without any robust legal framework for enforcement and prosecution. 

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