Quantum Computing Forecast to Trigger 'Cybersecurity Doomsday,' IBM Forewarns

January 22, 2024 by
Quantum Computing Forecast to Trigger 'Cybersecurity Doomsday,' IBM Forewarns
DxTalks, Ibrahim Kazeem

Dubai, UAE - IBM sounded an ominous warning about the cybersecurity repercussions of quantum computing advancements. As quantum computers gain greater capabilities in the coming years, they will be positioned to crack current encryption standards and cryptography methods, leaving digital systems defenseless.

"Is quantum computing truly going to ignite a cybersecurity Armageddon?" questioned Ana Paula Assis, IBM's general manager of Europe, Middle East, and Africa, during a discussion at the World Economic Forum in Davos. "It is." This will kick off a cybersecurity disaster, since most digital infrastructure hinges on encryption to safeguard delicate data."

RSA and ECC encryption constitute the foundation for secured online communications, e-commerce, and digital identification. Banking, healthcare, government databases, and digital messaging all depend on cryptography for security and data integrity.

Quantum computers capitalize on subatomic particles' peculiar ability to exist simultaneously in more than one state. By leveraging quantum mechanics, they can initiate attacks to decipher encrypted data at unmatched speeds.

Some governments are just beginning to take the threat seriously. In a rare show of unity, the U.S. Senate passed legislation in 2022 addressing the danger quantum computers present to cryptography.

Businesses are ill-prepared to harness quantum machines or grapple with the turmoil they will unleash, according to SandboxAQ Chief Executive Officer Jack Hidary, also part of the discussion.

Most "companies do not have a sturdy roadmap yet for how they will employ AI and quantum together to solve primary problems," Hidary said.

He said a "trainwreck" is brewing, estimating that it will take banks eight to ten years to shift to post-quantum protocols, while scalable quantum computers will be available by 2029 or 2030. Anything dependent on encryption, from e-commerce to online banking, is jeopardized, Hidary warned.

What does this mean for the fintech industry?

This warning of a coming "cybersecurity Armageddon" poses an existential threat to the fintech industry, which relies entirely on secure digital infrastructure for operations. As quantum computing advances over the next 5-10 years, current encryption standards used by fintechs and banks will become obsolete, exposing sensitive customer data and financial systems.

For example, digital wallets, online banking, lending platforms, and crypto exchanges all depend on cryptography to protect user funds and transactions. Quantum attacks could allow hackers to steal user credentials and assets or corrupt payment systems. The viability of blockchain technology itself could even be questioned, given its reliance on cryptographic proofs.

Fintechs need to future-proof their systems now before quantum computers reach maturation. However, the 8-10 year timeframe estimated for the finance industry to adopt post-quantum cryptography protocols feels dangerously long. Startups may lack the resources or expertise to upgrade their systems and safeguard data in time. Regulators will also need to establish security baselines across geographies to defend the sector speedily. In summary, quantum computing advancement threatens to systematically compromise trust in digital financial services unless fintech players make the necessary preparations.

How can companies prepare for this Quantum Computing Doomsday?

The most critical step companies should take is to upgrade their encryption methods to so-called "post-quantum cryptography" that can resist quantum attacks. Migrating existing systems will take considerable time and resources, so executives must immediately prioritize this. For example, banks and fintechs should be liaising with cybersecurity experts now to implement newer standards like lattice-based or hash-based signatures.

Firms also need to future-proof their systems by anticipating new attack vectors. Adding multi-layered defenses through algorithms unaffected by quantum (e.g., symmetric key encryption) provides fail-safes. Expanding bug bounty programs to specifically test quantum readiness will help discover new threats.

On the personnel front, companies should invest in quantum tech skills. Hiring developers experienced in quantum-secure frameworks, or retraining existing staff, better positions organizations to make the pivotal upgrades. Some technologists anticipate quantum machine learning itself could bolster cyber-defenses once mature.

While costs may be significant, action must occur well in advance of any concrete quantum threat. Following the recommended steps will significantly aid companies in averting total disruption when advances in quantum finally shatter existing cryptography in the next decade.