In a recent paper, researchers from the Atlanta Federal Reserve Bank highlights the threat quantum computing poses on the financial industry at its current state, as “research indicates a potential of up to $3.3 trillion in indirect losses,” is very possible.
The National Institute of Standards and Technology (NIST) reports that quantum computers “could break the current encryption that provides security and privacy for just about everything we do online.”
Research by the Hudson Institute analyzes the economic impact on the quantum threat to Fedwire
system. Their analysis demonstrates that a quantum hack would result in declines in annual real
GDP ranging from over 10% in the baseline scenario to 17% in the maximum impact
attack scenario. Furthermore, the results indicate that such a decline in aggregate output would
comprise a total of between $2 and $3.3 trillion in indirect losses alone, as measured by GDP-at-risk.
The solution for payments network participants: fight quantum with quantum. Advanced cryptographic algorithms in quantum computing have additional layers of calculated code, resulting in greater data protection and making payments more secure.
NIST in its oversight role as the authority for security standards has approved three advanced algorithms with a higher level of security necessary for protecting payments data. NIST recommends technology experts begin working on implementing the new framework as soon as possible.
Like a new light switch, quantum computing will require upgrades to hardware and software. Full implementation could take years. Building a strategy to implement quantum computing within your information security program needs to be on your “to do” list today.