At Nacha event Smarter Faster Payments 2025 in New Orleans, a weekend panel session explored how financial institutions must establish an internal risk committee that assesses and mitigates future quantum-related threats.
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John Buselli, offering manager – IBM security research, IBM, along with Namit Agrawal, partner and US leader, IBM payments centre, IBM Consulting, and John Brady, head of engineering and chief architect, BillGo, highlighted that current cryptographic tools, which take up to a million years to break, could be compromised by quantum computers in five to 10 years.
They emphasised the need for a roadmap to transition to quantum-resistant algorithms, starting with creating an inventory of critical assets and assessing vulnerabilities. Key algorithms like Shor’s and Grover’s were discussed for their potential to break encryption and accelerate fraud detection.
With the knowledge that cryptographic methods can be compromised, the financial services industry must also come to terms with the urgent need for quantum-safe cryptography, which involves developing algorithms that are resistant to quantum attacks. In order to keep the ACH network safe, cryptographic methods must be updated, and operational rules, strengthened.
Buselli mentioned that the onset of quantum threats will be “difficult to detect, purposeful, it won’t be dramatic but it will be concerning in that regard.” He went on to say that “all data that’s not quantum state today, if it were to be exfiltrated at some point in the future by a bad actor, they could unravel that data.”
He added: “This is a complex supply chain that has to be transformed. Everyone has a collective role in this together. That’s really where the safety is going to come from, and you’re only going to migrate as quickly as your least secure defence.” Quantum computers can break current encryption keys much faster than classical computers, so banks will need to revisit and rebuild payment systems to account for quantum computing threats.
Brady explored the various stages of payment processing, the vulnerabilities introduced by quantum computing, how digital identities can be hacked and synthetic identities can be introduced, leading to account takeovers and manipulation of payment transactions. Beyond payments origination, risks can also emerge in payment transmission, where systems can be intercepted and data manipulated. Further, within payments processing, clearing, and settlement, malicious users could change ledger values.
“In that sense, the integrity, the security and the risk of quantum that we are talking about today has to be understood by each and every individual in the value chain. […] Today, we do have quantum computers that are already at an experimental stage. They are able to generate various algorithms and capabilities.
“However, those quantum computers do not have, currently the compute or the error correction, or in this case, accuracy, in which they can break these algorithms. We are probably another five to 10 years away from quantum computers getting to a point where they could become powerful enough to break encryption keys.”
The discussion at the Nacha event sheds light on the imminent challenges posed by quantum computing to financial security. The experts emphasize the need for proactive measures, such as transitioning to quantum-resistant algorithms and strengthening cryptographic methods. Identifying vulnerabilities and creating a roadmap for quantum-safe cryptography are crucial steps to safeguard the ACH network. The potential for quantum computers to unravel encrypted data underscores the urgency of these actions. How can financial institutions ensure a smooth and timely transition to quantum-resistant systems without disrupting their operations?
The insights shared at the Smarter Faster Payments 2025 event highlight the pressing need for financial institutions to prepare for quantum threats. With experts like John Buselli and Namit Agrawal stressing the urgency, it’s clear that quantum-resistant cryptography can’t wait. The discussion around Shor’s and Grover’s algorithms underscores just how vulnerable current encryption might become. Financial firms must act now to safeguard critical data—procrastination isn’t an option.
How soon can the industry realistically transition to quantum-safe cryptographic systems without disrupting existing operations?
The discussion at the Smarter Faster Payments 2025 event highlights the critical need for the financial industry to prepare for quantum threats. Experts like John Buselli and Namit Agrawal emphasized the urgency of transitioning to quantum-resistant algorithms to protect sensitive data. Key vulnerabilities were identified, including the potential for quantum computers to compromise current cryptographic methods within a decade. Collaborative efforts across the supply chain are essential to ensure the safety of financial systems. How quickly can the industry realistically implement these quantum-safe solutions to mitigate emerging risks?
The discussion at the Nacha event highlighted the urgent need for financial institutions to prepare for quantum-related threats. Experts emphasized the importance of transitioning to quantum-resistant algorithms to safeguard critical assets. It’s concerning to think that current cryptographic methods could be compromised in just a few years. The industry must act collectively to strengthen defenses and ensure a secure transition. How soon can we expect to see widespread adoption of quantum-safe cryptography in the financial sector?
The discussion at the Smarter Faster Payments 2025 event highlighted the growing concerns around quantum computing threats to financial security. Experts emphasized the need for a proactive approach to transition to quantum-resistant algorithms. It’s crucial for financial institutions to assess vulnerabilities and create a roadmap for implementing these advanced cryptographic methods. The potential of quantum computers to break current encryption in the near future underscores the urgency of this transition. How prepared are financial institutions to handle the challenges posed by quantum computing?
The discussion at the Nacha event highlights the critical importance of preparing for quantum-related threats in the financial sector. Quantum computers could potentially compromise current cryptographic tools within the next decade, making it essential to adopt quantum-resistant algorithms. Experts like John Buselli and Namit Agrawal emphasized the need for a collaborative approach to secure the ACH network and other critical assets. A roadmap for transitioning to quantum-safe cryptography is crucial to mitigate future risks. How can financial institutions ensure a smooth and effective transition to these new security measures?
The discussion at the Smarter Faster Payments 2025 event highlighted the urgent need for the financial industry to prepare for quantum threats. Experts emphasized the potential of quantum computers to compromise current cryptographic tools in just five to ten years. Creating a roadmap for transitioning to quantum-resistant algorithms, such as Shor’s and Grover’s, is crucial to safeguarding critical assets. The financial sector must act collectively to update cryptographic methods and strengthen operational rules to ensure the security of the ACH network. How can financial institutions balance the need for rapid adaptation with the complexities of transforming their cryptographic supply chains?