Impact of Cybercrimes in Panama

María Isabel Pinilla, a lawyer in ARIAS Panama and expert in Litigation, shares this article on the impact of cybercrimes in Panama. 

The digital era is upon us, and that means we must adapt to an increasingly connected and technological world. The exponential growth of technology has transformed the way Panamanian companies operate. However, this advancement has also led to a significant increase in crimes classified as "cybercrimes". In fact, according to cybersecurity experts, at least one in five people in the world has suffered a cyberattack. 

Cybercriminals have found, within the vulnerabilities of digital infrastructure, an opportunity to carry out attacks, with disastrous consequences for companies. There are direct economic losses due to the theft of financial data since the restoration and recovery of systems can require a significant investment. In view of the increase in cybercrime, Panama has begun to implement measures to strengthen its legal framework. One of them is Bill No. 61, which was approved in the third debate (by the National Assembly), on October 9, 2024, which is only pending sanction by the president and its subsequent publication in the Official Gazette to become Law of the Republic. This novel bill seeks to modify and add articles to the Penal Code and the Code of Criminal Procedure, on international legal assistance in criminal matters, and dictates other provisions regarding measures against cybercrime, which seek to adapt Panamanian legislation to the Budapest Convention, and thereby protect the fundamental rights of all citizens in the digital realm, such as in cases of device abuse, unlawful interception of data, attacks on the integrity of systems, cyber harassment of minors, identity theft, non-consensual dissemination of intimate material, among other relevant crimes. 

This article explores the impact of cybercrime in Panama, analyzing the several ways in which these attacks can affect the operation, reputation, and financial health of various companies. 

First, we will begin by defining what "cybercrime” is, which is nothing more than illegal activities committed through digital devices, networks, and computer systems. Cybercrime can be classified into several categories, such as scams carried out through malicious emails or fake messages to obtain sensitive information, such as passwords and/or banking data, better known as "phishing”; malware that encrypts a company's data and demands a ransom for its release; unauthorized access to databases to steal confidential information, such as customer records and intellectual property; attacks that seek to saturate a company's servers, leaving them out of service; the use of another person's identity to carry out fraudulent actions, among others. 

In Panama, there are various laws that address incidents related to cybercrime, which are part of a broader legal framework that seeks to protect citizens and companies from cyber threats. Among them are: 

In this regard, our Criminal Code also refers to cybercrimes and, in its Title VIII, it details the crimes against the legal security of electronic media, a section that contains a chapter called "Crimes against Computer Security,” which details this type of conduct in a very general way. However, with Bill No. 61 of 2024, it is sought, among others, the inclusion of a specific chapter that regulates digital evidence, covering crucial aspects such as its preservation and the real-time obtaining of data related to traffic or content. The clear and precise regulation of digital evidence is key to ensuring that cyber investigations are effective, thus protecting procedural rights and strengthening the fight against cybercrime. 

Among the series of modifications that this Law will bring about is the incorporation of modern investigation tools, such as international cooperation that allows for the obtaining of evidence in electronic format, as well as the promotion of participation in permanent networks, such as the 24/7 Network of the Budapest Convention. This network allows national authorities to request and receive urgent assistance in the investigation of cybercrimes at any time, thus strengthening the State's capacity to respond to cyber threats quickly and effectively. As well as using artificial intelligence to detect and alert about digital violence in real time. 

Without a doubt, cybercrimes can generate repercussions of varying complexity for various areas of Panamanian society and economy, such as facing direct or indirect financial losses due to data theft or loss of intellectual property in companies. On the other hand, given Panama's crucial role as a financial center, cybercrime can have serious repercussions on the operation of banks, as the loss of sensitive data, such as personal information of clients or employees, can lead to irreparable damage to a company's reputation since a successful attack can diminish the trust of clients and business partners. 

The impact of cybercrime in Panama highlights the need for a collaborative approach between government, businesses and society to strengthen cybersecurity and protect the integrity of the country's digital economy and, without a doubt, the implementation of this new Law, once sanctioned by the President and promulgated in the Official Gazette, is crucial for the development of a safe and reliable digital environment in Panama, benefiting both citizens and companies operating in the country. 

If you need more information and/or questions on this topic, please do not hesitate to contact us at litigio-arias@ariaslaw.com, we are at your complete disposal to advise you. 

The information provided by ARIAS® is presented for informational purposes only. This information is not legal advice and is not intended to create, and does not constitute, an attorney-client relationship. Readers should not act upon this information without seeking advice from professional advisers.