Expert warns of rising cyber threats in emerging markets

Cyprus-based fintech and iGaming companies expanding abroad are underestimating cyber risks, according to Andrey Leskin, CTO at Qrator Labs, who warned that firms entering high-growth regions may face targeted digital attacks from competitors and ideological groups.

“Cyber risks simply are not top of mind during international expansion,” Leskin said, explaining that businesses focused on hiring, compliance and marketing often treat cybersecurity as secondary.

He noted that because cybersecurity measures beyond basic data protection are rarely mandatory, many executives assume they are not an immediate priority.

“Expanding into a new market already involves a lot of moving pieces, and cybersecurity often gets pushed down the list,” he stated.

Leskin added that European companies, including those in Cyprus, are accustomed to relatively fair competition and may fail to anticipate more aggressive tactics elsewhere.

“In some emerging markets, competitors may resort to unethical tactics, including cyberattacks, to discourage new entrants,” he mentioned.

He stressed that a company’s threat profile changes significantly once it begins serving customers outside Cyprus or Europe.

“A company’s threat profile is shaped not only by where it is headquartered, but also by where it operates and where its customers are,” Leskin said.

Entering regions such as Latin America or Southeast Asia can expose firms to new threat actors, including cybercriminals, local competitors and ideologically motivated groups.

“In certain regions, organisations that oppose industries such as betting or interest-based lending may be willing to use cyberattacks against businesses they oppose,” he said.

He warned that such groups may have strong local influence, making legal recourse difficult.

“Companies should assess cyber risks based on every market they enter, not just where their headquarters are located,” Leskin pointed out.

Leskin described cyberattacks as, in some cases, an extension of competitive strategy rather than purely criminal activity.

“In some regions, cyberattacks can be part of the competitive toolkit rather than being driven purely by criminal motives,” he said.

He explained that such attacks are often designed to disrupt new entrants and increase the cost of market entry.

“The objective is to make expansion more expensive and disruptive through DDoS attacks, data theft or other incidents that slow down operations,” Leskin stated.

He cautioned that these threats may extend beyond local systems to a company’s global infrastructure.

“A company’s global digital assets may also be targeted, because that creates even greater business disruption,” he said.

Leskin warned that European firms entering such environments may be unprepared, placing their entire operations at risk.

“These tactics have become an accepted part of aggressive competition in some markets,” he continued.

He explained that targeted cyber threats often emerge during key growth phases.

“These threats are most likely to surface during market entry and periods of rapid customer growth, when local competitors begin to see the company as a serious challenger,” Leskin said.

He added that attackers typically make their intentions clear.

“Because those behind the attacks want the company to leave the market, they will make that clear, even if indirectly,” he said.

According to Leskin, cyberattacks may be accompanied by hostile media campaigns, threatening communications or even physical incidents in extreme cases.

“The perpetrators want the company to understand exactly why it is being targeted and what they expect it to do,” he added.

Comparing Europe with emerging markets, Leskin said that many firms treat cybersecurity as a compliance exercise tied to regulation.

“If regulators require a particular measure, companies implement it; if not, they assume the risk is not significant,” he said.

He warned that this mindset can leave Cyprus-based firms exposed abroad.

“In emerging markets, regulatory frameworks may be limited or focused on different priorities, meaning compliant companies can still face significant cyber risks,” Leskin stated.

He also pointed to differences in law enforcement capabilities.

“In some markets, limited resources, insufficient expertise or corruption can make support from authorities far less reliable,” he said.

For founders in Nicosia and Limassol, Leskin urged integrating cybersecurity into early-stage planning.

“Companies should treat cybersecurity as part of market-entry due diligence rather than an afterthought,” he added.

He identified DDoS attacks, data theft and data destruction as the three primary threats businesses should prioritise.

Leskin also mentioned that while public reports and local insights are useful, they often provide only a partial picture.

“The best approach is to treat every new market as potentially high-risk until proven otherwise,” he said.

He advised startups to take practical steps before onboarding international users.

“Ensure you have DDoS protection, implement measures to prevent data leaks and maintain reliable backups so the business can recover quickly,” Leskin said.

These measures, he added, provide a strong foundation for operating securely in unfamiliar markets.

For companies already operating internationally without a regional threat assessment, Leskin recommended building on existing experience.

“Companies with an established presence can draw on their own experience to better understand the local threat landscape,” he stated.

He added that while the same core protections apply, they can be introduced more gradually.

“DDoS protection, data leak prevention and resilient backup processes remain essential, but there is less immediate pressure than during initial market entry,” Leskin concluded.