A report by the G7 Cyber Expert Group (CEG), chaired by the US Department of the Treasury and the Bank of England, addresses the cybersecurity risks posed by advancements in quantum computing and outlines essential steps for financial authorities and institutions to mitigate these risks.

A significant concern is the ability of superfast quantum computers to break existing cryptographic encryption methods, which currently protect customer data and IT systems. The report highlights the urgency of planning, as these quantum capabilities could potentially emerge within the next decade, threatening both future data and previously transmitted information that cyber adversaries may have intercepted.

In response to these emerging threats, the National Institute of Standards and Technology (NIST) released an initial set of quantum-resilient encryption standards last month, with more standards expected soon. Financial institutions are encouraged to maintain agility in adopting these new standards promptly. While some entities may be prepared to implement quantum-resilient technologies immediately, others might rely on vendors and third parties for necessary safeguards. The G7 CEG emphasizes the importance for banks to deepen their understanding of these issues, assess the associated risks, and develop effective mitigation strategies.