Which customer protections could quantum computers undermine in finance?

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Quantum Computers Pose Significant Risks to Financial Customer Protections

The advent of quantum computers presents a substantial threat to various customer protections within the financial sector. These advanced computing systems have the potential to undermine the confidentiality of customer data, compromise peer-to-peer communications, disrupt authentication processes, and erode trust in digital signatures. Financial institutions are being urged to prepare for these potential breaches, as quantum computers capable of posing such threats are anticipated to become available within the next 10 to 15 years, with the possibility of an accelerated timeline.
Threats to Customer Confidentiality and Peer Communications

Quantum computers can break certain forms of encryption that are currently used to safeguard sensitive financial information. This capability directly impacts customer confidentiality, as personal and financial data stored by institutions could become accessible to unauthorized parties. Furthermore, the security of communications between financial entities and their clients, as well as between peers within the financial network, could be compromised, leading to potential exposure of private transaction details and discussions.
Undermining Authentication and Digital Signatures

The integrity of authentication processes, which verify the identity of individuals and systems, is also at risk. Quantum computers could potentially circumvent current cryptographic methods used for authentication, making it easier for malicious actors to impersonate legitimate users or systems. This also extends to digital signatures, a critical component for establishing the authenticity and non-repudiation of electronic transactions and documents. The ability of quantum computers to break associated encryption could undermine the trust placed in these digital assurances.
Proactive Preparation and Data Storage Concerns

While new regulations are not deemed necessary by the Quantum Safe Financial Forum, the forum's key recommendation is for financial institutions to proactively identify cryptographic standards vulnerable to quantum attacks and to develop plans for transitioning to quantum-resistant alternatives. An additional concern raised is that criminals may already be collecting and storing sensitive data with the intention of decrypting it once more powerful quantum computers become available. This underscores the urgency for institutions to begin assessing their cryptographic inventory and planning for future resilience.

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Which customer protections could quantum computers undermine in finance?

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