# Quantum cryptography: how the finance industry can fortify its security by preparing to embrace this impending technological evolution
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2017-11-22
Category: TECHNOLOGY
Category URL: https://financedigest.com/category/technology
Meta Title: Protecting Financial Data: The Rise of Quantum Cryptography
Meta Description: Learn how the financial industry is evolving to safeguard customer data from cyber threats with the use of quantum cryptography technology.
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Tag URLs: featured (https://financedigest.com/tag/featured)
URL: https://financedigest.com/quantum-cryptography-how-the-finance-industry-can-fortify-its-security-by-preparing-to-embrace-this-impending-technological-evolutionhtml

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by **_Neil Bramley_** _, B2B client solutions business unit director at Toshiba Northern Europe_

With an increasingly connected world spurring on the perpetual rise of the Internet of Things (IoT), data is firmly establishing itself as the dominant fuel within many organisations, being central to the way they work. This data proliferation is taking place at an exponential rate – so much so that [Cisco](https://www.cisco.com/c/dam/en/us/solutions/collateral/service-provider/global-cloud-index-gci/white-paper-c11-738085.pdf) predicts a huge 14.1 zettabytes of data will be present in the cloud in 2020, compared to only 3.9 zettabytes in 2015.

With this shift taking place, encryption is an increasingly well-regarded protection tool in cybersecurity: over [80 per cent of mobile device data is encrypted](https://www-03.ibm.com/press/uk/en/pressrelease/52824.wss) – a significantly greater percentage than corporate data, despite its generally more revealing content. All data though, whether in the cloud or on devices, is a target for potential hackers. As the financial [industry handles](https://www.financedigest.com/material-handling-equipment-market-2022-scope-of-current-and-future-industry-2030.html "Material Handling Equipment Market 2022 | Scope of Current and Future Industry 2030") a significant amount of highly sensitive and valuable data, including Personally Identifiable Information (PII) of customers, focused attacks are to be expected. Recent security breaches experienced by [Italy’s largest bank, UniCredit](http://www.bbc.co.uk/news/technology-40728447), and the [Qatar National Bank](http://www.ibtimes.co.uk/qatar-national-bank-1-4gb-database-leak-gives-data-customers-journalists-spies-1556787), which together put the data of hundreds of thousands of customers at risk, emphasised that financial organisations are particularly susceptible to cybercrime. Such companies must, therefore, make data [security a top](https://www.financedigest.com/top-tips-for-securing-softpos-payments.html "Top tips for securing SoftPOS payments") priority.

As the foundations of computing begin to change from maths to physics with the introduction of quantum computing, so must the financial industry evolve the way it protects its data to ensure optimum and future-proofed security. Global Industry Analysts forecasts quantum computing’s global market to reach [$2 billion by 2024](http://www.strategyr.com/MarketResearch/Quantum_Cryptography_Market_Trends.asp), and it will pay dividends to keep abreast of its evolution. Quantum cryptography is emerging from this ongoing development as a strong protection method, necessary to combat ever-increasing [security threats](https://www.financedigest.com/the-future-of-finance-how-to-defend-against-the-top-threats-to-cloud-security.html "The Future of Finance: How to defend against the top threats to cloud security").

**The building blocks of quantum cryptography**

Quantum cryptography produces a message unreadable to all except its explicit recipient, due to the fundamental physics law of observation: to observe something is to change it. This specific type of quantum [computing](https://www.financedigest.com/quantum-computing-in-finance-the-next-digital-arms-race.html "Quantum Computing in Finance: The Next Digital Arms Race?") is known as Quantum Key Distribution (QKD), as whoever is receiving the message will still need a transmitted ‘key’ to decode its contents. Encryption is brought into a new era of online security by precisely how QKD communicates: keys are transmitted as photons, and usually light particles. If third-party interception is detected, the key instantaneously transforms state, rendering its contents indecipherable and, thus, useless. This change of state also indicates to the recipient that the transmission’s contents have been compromised. Until interference, QKD particles are able to exist simultaneously in more than one place and state, only having to select a behaviour upon coming into contact with something else – such as a hacker.

Toshiba works at the forefront of quantum cryptography, recently making a [breakthrough](http://www.toshiba.co.jp/about/press/2017_09/pr1501.htm) at its Cambridge Research Laboratory by creating the world’s fastest QKD device. [Approximately seven times faster than Toshiba’s previous record](https://www.financedigest.com/sales-of-semi-automatic-milking-machines-is-projected-to-record-a-cagr-of-approximately-8-cagr-through-2027.html "Sales of Semi-Automatic Milking Machines Is Projected to Record a CAGR of Approximately 8% CAGR through 2027") speed of 1.9Mbps, a speed of 13.7Mbps has now been achieved. Such a development brings the wider, [practical utilisation of quantum technology one step](https://www.financedigest.com/factoring-in-fail-safes-five-practical-steps-for-more-efficient-transparent-reporting.html "Factoring in fail-safes: five practical steps for more efficient, transparent reporting") closer.

**Quantum cryptography’s role in shaping the** [security of the financial sector](https://www.financedigest.com/why-the-finance-sector-must-prioritise-mobile-security-over-innovation.html "Why the finance sector must prioritise mobile security over innovation")

Cost presently restricts the mainstream use of quantum cryptography, with it likely to be some while before the technology is widely-utilised. Now, however, is the best time to prepare in order to stay [ahead in the race](https://www.financedigest.com/flutter-q1-revenues-jump-29-as-u-s-races-ahead-uk-bounces-back.html "Flutter Q1 revenues jump 29% as U.S. races ahead, UK bounces back") between hackers and cryptographers, both of whom stand to benefit from the new technology. A significant threat to the [integrity](https://www.financedigest.com/why-embedded-finance-will-be-integral-in-the-future-of-b2b-marketplaces.html "Why embedded finance will be integral in the future of B2B Marketplaces") of financial data in the cloud is the technique of harvest and decrypt. Already being deployed by cybercriminals, this technique sees sensitive files, which could include information such as account holders’ addresses and names, scraped and stored by malicious parties until they have the capability in the [future to decipher the contents with quantum computers](https://www.financedigest.com/the-future-of-cloud-computing.html "The Future of Cloud Computing") (the power of which vastly outstrips that of a classic computer). Even [currently secure data](https://www.financedigest.com/cbd-gummies-market-current-scenario-and-industry-growth-forecast-with-major-key-players-data-2030.html "CBD Gummies Market| Current Scenario and Industry Growth Forecast with Major Key Players data 2030") is, therefore, already vulnerable to the hackers of the future. Vigilance now, with the security tools presently available, is crucial – it [avoids attracting a cybercriminal’s attention as either an immediate data](https://www.financedigest.com/the-race-to-avoid-data-dinosaur-extinction.html "THE RACE TO AVOID DATA DINOSAUR EXTINCTION") breach target or future harvest victim.

The financial [industry must](https://www.financedigest.com/why-the-industry-must-simplify-cybersecurity.html "WHY THE INDUSTRY MUST SIMPLIFY CYBERSECURITY") also recognise that leaked data doesn’t only cost in terms of the danger of personal and business critical data being readily obtainable online. Reputations will also be damaged, possibly irreparably, and the monetary cost will be high. Indeed, the financial industry has been found as having [amongst the highest per-record costs in data breaches](https://www.ibm.com/security/infographics/data-breach/) out of 17 sectors surveyed in a recent IBM report, at $245 (£191) per record, and second only to healthcare at $318 (£249) per record.

Quantum cryptography has the ability to usher in a new age of ‘unhackable’ online communication – as long as the [finance industry](https://www.financedigest.com/navigating-consumer-data-in-the-finance-industry.html "NAVIGATING CONSUMER DATA IN THE FINANCE INDUSTRY") ensures that education and awareness also remain high on the agenda. Support for IT decision makers will be vital in maintaining robust data [security now and in the future](https://www.financedigest.com/the-future-of-cyber-security.html "THE FUTURE OF CYBER SECURITY"), ensuring a mindset agile enough to update methods when the time comes. Cybercriminals often lead the way with new and inventive hacking methods – with quantum computing, [financial organisations need to move to a preventative rather than reactive IT security](https://www.financedigest.com/post-brexit-uk-workers-can-have-financial-security.html "Post Brexit – UK workers CAN have financial security") infrastructure, or by the time they address any attack it will be too late. By understanding how quantum cryptography can work to fill the gaps in online defences, such as with the protection of abandoned historic data, the financial sector will be well-placed to stay one step [ahead of any complex threats in the future](https://www.financedigest.com/the-future-of-fintech-forging-ahead-with-digital-transformation.html "The future of fintech: Forging ahead with digital transformation").


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