Singapore Alerts Financial Institutions Against Quantum Computing Cybersecurity Risks

Singapore’s financial regulator has warned financial institutions against cybersecurity risks linked with quantum computing. Quantum computers function on the ethics of quantum mechanics. They are faster in solving multiple mathematical problems than traditional computers.

However, these computers pose a major cybersecurity risk as they can break down regularly used digital signature algorithms and encryption.

The advice given urges banks to get ready for these risks by drifting to quantum-resistant encryption and significant distribution systems. The risks can also be mitigated by bringing in other solutions in quantum security like Quantum Key Distribution technology.

Experts Predict Cybersecurity Risks Quantum Computing

Professionals predict the arrival of the cybersecurity risks related to quantum computing. They reveal that it may come into reality in the next decade. The cryptographically-relevant quantum computer could break the asymmetric cryptography that is usually used. Moreover, symmetric cryptography may need bigger key sizes to stay secure.

The National Institute of Standards and Technology has responded to this issue. The agency has begun a standardization process globally for post-quantum cryptography.

This process includes selecting public-key cryptographic algorithms that are quantum-resistant. These algorithms can function with existing communication and networking procedures and also safeguard sensitive information against CRQCs.

Research projects are currently going on to develop a technology for Quantum Key Distribution. This will aid the establishment of secure channels for communication used for distributing encryption keys.

Banks Are Expected To Achieve Crypto-Agility To Lesson Cybersecurity Risks

To lessen the quantum computing cybersecurity risks, banks must achieve crypto-agility. This involves the ability to effectively transition from susceptible cryptographic algorithms to Post-quantum cryptography. They should be able to achieve that without extensively impacting their information technology infrastructure and systems.

Banks could also effectively employ other quantum security solutions like QKD, as one of their risk lessening strategies. This advisory reveals some measures that banks should look into as part of their effort to transit quantum. These measures include being well-informed about the latest quantum computing development and increasing awareness of the related cybersecurity risks.

The ongoing developments of quantum computing should be monitored by financial institutions to fish out any cybersecurity risks and threats that may affect financial services. Senior management and major third-party vendors need to learn about the possible risks of quantum technology.

It is also advised for banks to collaborate with third-party IT vendors to evaluate the organization’s IT supply chain risks coming from quantum threats. Vendors will be needed to deliver quantum-resistant solutions when available, as revealed in the latest report.

Financial organizations should also join forces with major Information Sharing and Analysis Centers, research bodies, or industry groups. This is to exchange information and jointly reduce systemic quantum risks.