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In 2023, financial institutions worldwide faced an alarming rise in ransomware and cyberattacks, with India experiencing a 29% increase in financial sector breaches according to CERT-In. Adding to this challenge is the looming threat of Harvest Now, Decrypt Later (HNDL), a strategy where hackers capture encrypted data today, intending to decrypt it using powerful quantum computers in the near future.

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A quantum computer can process data at an enormous speed. A transaction that takes classical computers weeks to compute can be processed by a quantum computer in seconds. The ability of quantum computers to factor many possibilities simultaneously has severe implications for data privacy. Data attacks with advanced quantum technologies could crack even the most advanced encryption schemes.

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Cybercriminals are especially eyeing pharmaceutical companies in view of the COVID-19 pandemic. Indian pharma firms were possibly attacked since they are providing affordable medicines on a large scale and are important in drug discovery and supply chain.

Quantum computers use the laws of quantum mechanics to process information in quantum bits or qubits. Qubits can exist in multiple states at the same time (called quantum superposition). This property allows quantum computers to process data and solve problems exponentially faster than classical computers.

Google announced crossing the Quantum Supremacy Threshold of 53 Qubits. This essentially means that a Quantum Computer (QC) of 53 Qubits can perform some operations faster than the most advanced supercomputers today.

As India’s financial ecosystem continues to digitize, the importance of robust cybersecurity cannot be overstated. SEBI’s Cybersecurity and Cyber Resilience Framework (CSCRF) was introduced to address the evolving threat landscape, ensuring that regulated entities remain secure and resilient. However, the emergence of quantum computing is reshaping the cybersecurity narrative.

In an era of rapid digital transformation, India’s financial sector is the backbone of the economy, which leverages technology to facilitate banking, securities trading, investment services, and more. However, with this increased digitization comes heightened exposure to cyber risks. To address the growing cyber threats,

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The process of encrypting data is called cryptography. It converts plain text into scrambled text so that someone with the right “key” can read it. Quantum cryptography, by extension, uses the principles of quantum mechanics to encrypt data and transmit it securely.

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Google’s Chrome team wrote in their blog that they are revising technical standards, implementing and evaluating new quantum-resistant algorithms, and engaging with the broader technology community to ensure a seamless transition.

Quantum computers use fundamental principles of quantum mechanics to solve complex problems in a matter of seconds (which otherwise would take several years). Once a quantum computer achieves a scale large enough to crack RSA encryption protocols, all of our online data is under threat.

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Companies and governments around the world are in a race to build the first usable quantum computer. The technology promises to make some kinds of computing problems much, much easier to solve than with today’s classical computers, but it also poses a significant threat to the integrity of encrypted data.

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