Pioneering quantum-safe security for the financial sector

With quantum computing advancing rapidly, the financial sector's current encryption standards will soon be inadequate and insecure.

Today’s security standards are largely based on the idea that classical computers cannot perform the calculations needed to crack encryption keys in a practical timeframe. Research suggests that quantum computers, which can perform these calculations more quickly by several orders of magnitude, will be able to break current encryption methods in a far shorter space of time.

Financial data is particularly sensitive, and is in fact already at risk. ‘Harvest now, decrypt later’ attacks involve malicious actors intercepting protected transmissions now, and then decrypting them when the technology becomes available. This has huge implications for the finance industry.

Quantum Key Distribution (QKD) is a quantum-safe solution that protects sensitive data today and in future, using the fundamental principles of quantum physics. It will not only protect data when quantum computers are more widely available, but also from the ‘harvest now, decrypt later’ attacks being carried out today.

Toshiba's QKD technology utilises the quantum properties of light to generate secure random keys for encrypting and decrypting data. Keys are delivered via individual photons sent along the network. Any attempt at interception disturbs the quantum state of the particles, revealing the intrusion and causing the system to discard any intercepted key material, maintaining the integrity of the data.

‘Harvest now, decrypt later’ attacks can occur while data is in transit. ‘Data in transit’ is one of the three ‘states’ of data, during which it requires specific protections. While the others, ‘at rest’ and ‘in use’, typically describe data housed in one location, data in transit is vulnerable to certain high-security threats like eavesdropping attacks and data theft while it’s in motion between points.

In order to secure data in transit against such attacks, networks need to be resilient against decryption attempts. That’s one reason why QKD technology is so successful at ensuring data security, as the quantum secure signals can mitigate eavesdropping attempts, meaning that the transmissions cannot be decrypted, and the network is secure.

At Toshiba, we bring over two decades of quantum cryptography leadership to our QKD solutions, providing superior performance and a practical approach to integrating QKD into existing financial networks. We are already working with companies like HSBC on real-world applications of our cutting-edge technology, such as protecting AI-powered FX trading.

Yes, Toshiba has developed QKD systems that can be seamlessly integrated into existing networks. They offer long-range data transmission capabilities and multiplexing technologies that allow for the coexistence of QKD signals and conventional data traffic on the same fibre infrastructure.

Toshiba is at the forefront of quantum-secure communication, actively developing and deploying QKD networks, such as the Quantum Secure Metro Network (QSMN) in partnership with BT, to allow end-users like HSBC to incorporate it into their cybersecurity strategy. This not only demonstrates our commitment to quantum security but also provides a blueprint for future financial industry protections against quantum threats.

By addressing the real and compelling need for quantum-safe encryption and demonstrating real-world applications through strategic partnerships, Toshiba is leading the way in securing the financial sector's future. Our commitment to innovation and security ensures that financial institutions can navigate the quantum era with confidence, safeguarding their data and their customers against emerging cyber threats.

QKD works by encoding encryption keys onto individual photons. Due to the laws of quantum physics, any attempt to observe the particles affects their state, meaning attempts to eavesdrop are automatically detected and mitigated. The key material is not used, preventing the eavesdropper from intercepting and using any encryption keys.

As QKD uses the actual physical properties of particles for protection, any attempt at using either mathematics or quantum computing cannot decrypt QKD quantum secure keys – QKD solutions are immune to maths or quantum computing-based decryption and are therefore truly quantum-secure.

Due to its reliance on the laws of physics, QKD is provably secure, with the UK’s National Physics Lab independently validating the critical parameters of Toshiba’s QKD systems.

PQC refers to emerging software and mathematics-based encryption standards that are believed to be resistant to attack by quantum computers. As PQC is software and mathematically-based, it may be susceptible to future compromise by quantum computers.

QKD and PQC can be deployed together within a network to benefit from the respective benefits of both systems to provide a ‘defence in depth approach’.