Bangladesh Cybersecurity 2020: Threat Landscape and Security Industry Growth

Bangladesh Cybersecurity 2020 Overview

Bangladesh's national awareness of cybersecurity increased dramatically following the 2016 Bangladesh Bank SWIFT hacking incident ($81M in losses). As of 2020, a national cybersecurity strategy has been formulated, BGD e-GOV CIRT is operational, and the Digital Security Act (DSA) has been enacted, establishing an institutional foundation — though enterprise and government security capabilities remain at an early stage.

The cybersecurity market is approximately $45M, projected to grow at 30% annually and reach $170M by 2025. The rapid expansion of MFS (mobile financial services) has driven a surge in financial fraud, while OT security for garment factories, strengthening government cybersecurity capacity, and data protection legislation are all urgent priorities. Korean organizations including KISA, AhnLab, and S2W are exploring ODA linkage and technology export opportunities.

$45M

Security Market

2020 estimate

50,000+/yr

Cyber Incidents

Reported figures

BGD e-GOV CIRT

National CERT

Established 2016

30%/yr

Growth Rate

2020–2025 forecast

$170M

2025 Target

3.8x growth

$81M

SWIFT Loss

2016 hacking incident

ISO 27001 Banks

25% of 60 total banks

300 positions

Security Talent Gap

Additional specialists needed in government

Cyber Threat Landscape Analysis

The primary threats in Bangladesh are financial fraud, ransomware, DDoS attacks, and phishing. MFS (mobile financial services) proliferation has driven a sharp increase in mobile financial fraud, and Industrial Control System (ICS) security for garment factories has emerged as a new challenge. Nation-state APT attacks have also been on an upward trend since 2020.

Major Cyber Threat Categories and Status (2020)

Threat	Cases/Year	Primary Targets	Estimated Losses	Trend	Korean Solutions
Financial Fraud	15,000+	MFS and online banking	$50M+	Surging	AhnLab, Igloo Security
Ransomware	3,000+	Enterprises and hospitals	$10M+	Increasing	AhnLab V3, ESTsecurity
Phishing	20,000+	Individuals and companies	$20M+	Increasing	S2W, Genians
DDoS	500+	Government and finance	Service disruption	Flat	Akamai and SKB partnerships
ICS Attacks	100+	Garments and power	Production stoppage	Emerging	Norma, Pentasecurity

National Cybersecurity Strategy and Legal Framework

The government has established legal and institutional foundations through the 2014 ICT Act amendment, the 2018 Digital Security Act (DSA), and the 2020 National Cybersecurity Strategy. BGD e-GOV CIRT serves as the national CERT, overseeing threat monitoring, incident response, and capacity building. The government's goal is to elevate cybersecurity capabilities to ASEAN standards by 2025.

Legal Framework

Digital Security ActEnacted 2018 — strengthened cybercrime penalties

ICT ActEnacted 2006, revised 2013 — electronic crime provisions

Data Protection LawScheduled for 2021 — personal data protection standards

Electronic Transactions ActEnacted 2006 — legal validity of e-signatures and authentication

National Cyber StrategyFormulated 2020 — five-year roadmap finalized

Agencies and Infrastructure

BGD e-GOV CIRTNational CERT — 24/7 operations, 50+ security professionals

NTMCTelecom monitoring center — network threat detection

Cybercrime UnitUnder Police HQ — financial fraud and APT investigations

BTRCTelecom regulator — security oversight and ISP security standard enforcement

National SOC2020–2025 national SOC construction budget: $10M

Security Status and Challenges by Industry

The financial sector has the highest security readiness, but still falls short of global benchmarks. Garment and manufacturing OT (Operational Technology) security is virtually nonexistent, and government agencies face a severe shortage of security personnel. Tailored security solutions and workforce development for each industry are urgently needed.

Financial Security Strengthening

Bangladesh Bank SWIFT hardening completed; 15 banks (25% of 60 total) now hold ISO 27001 certification. AI-based real-time fraud detection systems (FDS) are expanding for MFS fraud response, with a target of full-sector ISO 27001 compliance by 2025.

OT and ICS Security Implementation

OT security for garments and manufacturing is nearly absent. SCADA and PLC protection is urgently needed, particularly to prepare for security audits by global buyers (H&M, Walmart). A $10M+ market for Korean OT security solutions is forming over the 2020–2025 period.

Government Agency Capacity Building

BGD CIRT is operational, but only 5% of civil servants have received security training, and 300 specialist positions are unfilled. KISA-linked ODA programs that transplant the Korean national CERT model could unlock $5M+ in technical cooperation contracts over five years.

Telecom and Internet Security

ISP and telecom DDoS defenses remain at a basic level. BGP and DNS security is insufficient, and Anycast network deployment is needed. Grameenphone and Robi are increasing security investment, creating supply opportunities for Korean solutions.

Data Protection Regulatory Compliance

With the Data Protection Law expected in 2021, enterprise compliance demand is rising. A $3M+ market for consulting and solutions supporting GDPR-level personal data protection frameworks is anticipated.

Korean Cybersecurity Firm Cooperation Opportunities

Korean Cybersecurity Firm Bangladesh Entry Analysis by Sector

Sector	Demand	Korean Firms / Organizations	Cooperation Mode	Expected Revenue
Financial Security	MFS and banking protection	S2W, AhnLab, Igloo Security	Solution export and localization	$5M
OT / ICS Security	Garment and power facilities	Norma, Pentasecurity	Technology transfer and consulting	$3M
Workforce Development	CERT and security professionals	KISA (Korea Internet & Security Agency)	ODA training and education	$2M
Security Certification	ISO 27001 consulting	BSI Korea, DNV	Consulting and audit	$1M
National SOC	BGD CIRT support	코리아SK Shieldus, NSHC	ODA and commercialization	$4M

Bangladesh Cybersecurity Capacity Building — Four-Stage Path

Threat Analysis

Assess finance, OT, and government threat landscape; conduct vulnerability diagnostics

→↓

Strategy Formulation

Develop national and industry-level cybersecurity roadmap; determine priorities

→↓

Infrastructure Build

Strengthen SOC and CERT; launch training programs; update legal framework

→↓

Sustained Operations

Share threat intelligence; establish Korea–Bangladesh CERT cooperation MOU

Short-Term Entry Strategy (2020–2022)

Top PriorityFinancial security — immediate SWIFT and MFS FDS demand

ODA UtilizationKISA-linked BGD CIRT workforce development program

PartnersBangladesh Bank, BGD CIRT, and BTRC cooperation

Entry PathKOICA ODA → pilot → commercial contract

Investment Scale$200K ODA → $1M+ commercialization after results

Long-Term Growth Strategy (2023–2025)

OT SecurityGarment and power ICS security platform — $10M+ market

National SOCExport Korean SOC model; secure managed operations contract

Certification BusinessEstablish specialized ISO 27001 consulting practice

Data ProtectionSupply data protection law compliance solutions

Revenue Target10% share of $170M market → $17M/yr

South Asia Cybersecurity Capability Comparison by Country (2020)

Country	Market Size	CERT Status	Primary Threats	Korean Cooperation Suitability
Bangladesh	$45M	Established 2016	Financial fraud, ransomware	★★★★☆
India	$2.5B	CERT-In (mature)	APT, supply chain	★★★☆☆
Sri Lanka	$20M	Established 2012	Phishing, financial fraud	★★★★☆
Pakistan	$30M	Established 2014	Finance and government attacks	★★★☆☆
Nepal	$5M	Early stage	Phishing and fraud	★★☆☆☆

Cybersecurity: Core Strategy

Bangladesh's cybersecurity market is growing at 30% annually from a $45M base, with the institutional framework rapidly maturing since the 2016 SWIFT incident. Korean security firms have abundant entry opportunities in financial security solutions, OT/ICS security, and KISA-linked workforce development through ODA.

Priority entry areas: ① Financial MFS security — immediate demand for bKash and Nagad fraud detection. ② BGD CIRT capacity building — build relationships at no upfront cost via KISA ODA. ③ OT/ICS security — becoming mandatory as global garment buyers require security audits. Building early cooperation channels with Bangladesh Bank and BTRC through the KOTRA Dhaka Trade Office network is the core strategy. Positioning compliance solutions proactively before the 2021 Data Protection Law takes effect will be advantageous.

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