Best Steam Deck accessories in 2023: Power banks, headsets & more. Quantum power bank

Quantum-Safe Security Solutions for Banking and Financial Institutions

Banks and financial institutions have some of the most demanding industry IT requirements. They need to ensure real-time availability of data for banking transactions and applications, while at the same time protecting sensitive client and proprietary information. In addition, they are subject to increasing levels of ever more stringent compliance and regulatory requirements.

As digitalisation is increasing, so is the number and complexity of cyber-attacks. The banking industry has always been a ‘hacker-favourite’. This trend continues to be true according to the latest “Cost of Cybercrime” study by Accenture:

In parallel, IBM and Ponemon’s “Cost of a Data Breach” report indicates an average total cost of a data breach of 5.86M for the financial industry (number two after healthcare).

Responses to data breaches are increasingly severe, with an average stock price decline of 6.8% (from 4.4% in 2016).

Customer decline after ID theft or fraud:

3% left their credit union
28% left their banks
4% left their credit card company

In addition, it is worth noting that consequences of a data breach have a tendency to linger long after the incident – especially in high regulatory environments – with only 53% of costs occurring in the first year, 31% in the second year and 16% more than two years after the incident.

Quantum computing changes the game

Quantum computers are ideally suited to solve complex mathematical problems, such as the factoring of large numbers, which is at the core of asymmetric cryptosystems.

Implication for cyber security are serious: quantum computers will break most internet security solutions relying on public-key cryptography. Today’s encrypted data is already at risk as it can be stored and decrypted once quantum computers are available.

Organisations that need to protect data for 10 years must start their quantum journey today.

Quantum technologies applied to banking and finance

Quantum Random Number Generation for PKI: Plan now, act later

The foundation of a good cybersecurity strategy relies on the quality of the entropy used to generate encryption keys.

Quantum physics proves that a Quantum Random Quantum generator are truly random and can generate keys at much higher speeds than conventional number generators. The use of QRNGs is therefore an easy first step towards Quantum Safety.

IDQ provides QRNGs in various form factors and performances to respond to most use cases encountered in financial applications such as authentication, encryption, digital signatures, secure access control, high speed trading or blockchain private key generation.

QRNG can also provide distributed randomness-as-a-service through the Quantis Appliance, for use in security applications as well as in financial simulations (such as Monte Carlo simulations).

Improve entropy of the key generation: A QRNG appliance can easily be integrated in an existing encryption infrastructure.

Quantum Key Distribution for DCI confidential: Act now

Quantum Key distribution is the logical next step towards Quantum safety. Once data is encrypted, the interception of the key that was used for the encryption would “nullify” the effect of the encryption.

IDQ’s QKD solutions provide an additional layer of security to an existing system by providing a quantum protected channel for the key exchange.

The intrinsic properties of the single photons used to carry the key in that channel would make any interception attempt apparent to the receiver and the use of that key material would therefore be cancelled.

QKD becomes increasingly relevant in the network digitalisation process as previously distributed topologies consolidate in fewer and increasingly critical links and the adoption of SDN solutions.

Secure the exchange of the encryption keys: IDQ’s QKD systems are integrated with most major encryptor manufacturers, and offer a provably safe transport of the keys through a separate channel.

Quantum Key Distribution (QKD) use cases

Example for longer distances and multiple data center interconnect in the financial Industry.

Example of a ring metropolitan infrastructure with redundant routes.

The Quantum Vault

The Quantum Vault offers a tokens custody security solution that will meet the same security requirements as bank-grade security solutions on HSMs. Why?

Major pain point of blockchain technology: Storage of Digital Keys (tokens)
Private keys need to be stored in tamper proof, reliable and protected systems

Main advantages:

Unconditional security thanks to the joint use of QRNG and two technologies “Information Theoretic Secure”: Keys split with Shamir secret sharing protocol and QKD
Backup without duplication: Keys are never in their complete form in the HSMs (Key storage or backup nodes)
High availability of the keys for signature, authentication and transactions

Best Steam Deck accessories in 2023: Power banks, headsets more

From power banks to the best controllers and even extra storage (not counting microSD cards), we’ve assembled the best Steam Deck accessories, so you don’t have to look around anywhere else.

Accessories are key to the Steam Deck‘s continued success. It makes them super versatile, and while we’ve covered USB-C docks from a wide range of companies elsewhere on the site, this is more about making your gaming experiences that little bit better.

Best Steam Deck power banks

One of the most essential Steam Deck accessories is a power bank. If you want to make use of gaming on the go, then you’ll need something to power it up. But, just make sure you pick one up that has at least 45W of power delivery.

For our money, the best right now is Omnicharge. A smaller company, they have put out fascinating power banks that should, in some rare cases, be able to power your whole system.

The smaller options might not give the juice needed, as the Steam Deck needs at least 45W to charge. However, you’ll find their more expensive options can support up to 100W charging, as well as provide power to your other devices over USB.

Think about it, you’re out there, your phone is dying and Deck is dying too. Rather than compromise and try to find the nearest outlet in your friend’s house (why is it always behind a couch?) you could whip out your Omnicharge and be able to fast charge both – multiple times.

These not only are excellent multi-tools, but they have massive batteries built in. Currently, their Omni 40, aimed at MacBooks and other laptops, hosts a whopping 35,000 mAh battery.

While more focused on professionals, what’s that to stop you from jumping in?

Best Steam Deck USB power bricks

One of the most essential Steam Deck accessories is a USB power brick. Sure, the default one is fine. But, if you want to charge more than one device at once, it’s worth looking into other options, too.

Going with a multi-charger from Anker could probably save you a lot of hassle. Plus, you’d be able to invest in a much longer USB-C cable to sit comfortably pretty much anywhere.

How often do you find yourself needing to just turn over to that right spot and feel the tug of a cable preventing you from doing so?

Well, no more. Anker’s newer range and previous options are our go-to for charging needs and even provide a 45W portable charger for those who just need to need to juice to charge other devices, too.

Best Steam Deck cases, stands screen protectors

Another group of Steam Deck accessories that you need to pick up is a case or screen protector. But, there are other interesting options out there, too.

Deckmate

We recently reviewed the Deckmate, which completely lives up to the name. It’s a friend to the end.

Deckmate, a company taking advantage of the new device, already has a wide variety of things for you to grab. These are everything from stands, to VESA mounts and wall mounts for when you dock the device on something that’s not Valve’s or JSAUX’s.

We especially like that it seems to be offering a universal approach, allowing anyone to design and provide their own attachments for the future.

While these are excellent for carrying your extra gadgets along with them, they don’t exactly add any extra layer of protection. For this, you might want to consider a DBrand skin or even their Killswitch case.

However, DBrand did come under some fire when they revealed that their Killswitch case would be pulled from sale, and be replacing the magnetic kickstand that could potentially slow down a specific set of fans in the device.

JSAUX Steam Deck ModCase

We recently got hold of the JSAUX ModCase, a modular kit similar to the Deckmate. While the Deckmate relies on sticking things on, or creating your own with a universal mount, JSAUX has created something a little more streamlined.

We got nearly the full kit, which features the following:

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Case
Cooling fan
Wrist strap
Back stand
A protective sleeve for the Steam Deck Dock
11-in-one USB hub
M.2 enclosure

The only thing we didn’t get was the Power Bank module, which seems like would be the best option to go for. However, we do like the USB hub, as it clips onto the back and if you’re in possession of a long HDMI or DisplayPort cable, you’ll be able to recreate a DS, 3DS, or Wii U while emulating games.

Screen protectors

There are a few generic brand cases from Amazon, which should serve the purpose of protecting your precious Steam Deck from drops or spillages. However, we do recommend looking into getting hold of an independent screen protector.

Best headset and earbuds for the Steam Deck

While not strictly a part of your essential Steam Deck accessories, having earbuds or a headset on the go with your Steam Deck might be incredibly useful.

If you can wear in-ear headphones, we’d highly recommend getting hold of the JBL Quantum TWS. These come with a 2.4GHz USB-C dongle, for a better and smoother connection over wireless than Bluetooth. This makes them ideal for gaming, as you won’t have to suffer from/ the potential lag that comes with Bluetooth.

They also work out of the box, regardless of what operating system you intend to use. This makes them perfect for those who just use SteamOS, there’s no faffing around with Linux here.

Outside of this, if you need overhead headsets, we’d probably recommend one that’s 3.5mm. We’ve tested the wider range of JBL, LucidSound, and a couple of others, but haven’t found one that works wirelessly out of the box. Bluetooth is fine, so you could theoretically go with the JBL Quantum 810s, but you lose a few additional gaming features when disconnecting with the JBL Quantum software.

What we’d suggest is something like the Skullcandy SLYR Pros, which use USB to connect to the device, as well as 3.5mm. Other than this, a really nice pair of Bluetooth headphones would probably do just nicely for some relaxing gaming sessions.

Best Steam Deck portable SSDs

If you picked up the 64GB Steam Deck, you might find that you’ll run out of space quickly. That’s why an external SSD is one of the most essential Steam Deck accessories. We’ve covered how to add external storage to your Steam Deck before, but what’s the best option? In our current setup, we’ve just got a generic NVMe adapter that houses an old 256GB PCIe 3.0 drive. However, you can do better than that.

We’d always recommend going the route of SSDs, especially in 2023. The failure rate and slower loading times that come with hard drives just aren’t worth it anymore. With that in mind, we do recommend the WD Black range of external SSDs, as well as Samsung’s T5 or T7 drives as well. These are lightning-quick USB 3.2 Gen 2 drives, that will consistently last for a few years of service.

Alternatively, you could always get a Crucial SSD, which we use for capturing footage of games for other projects. It manages to keep up with our NVMe drives to some extent and the small size means it could be easily clipped onto some of the Deckmate products.

Best bags for the Steam Deck

Our top recommended bags for the Steam Deck are usually going to be in the realms of ‘camera bag’ or ‘laptop bag’.

In our ultimate Steam Deck starter guide, we mention Samsonite. However, these are luxurious bags that we only came into because of the Philips Evnia excursion a few months back.

What we do recommend is looking through some of BH’s lineup. They have a tonne of inexpensive camera bags that will nestle your Steam Deck, case, controller, and dock quite nicely.

Best controllers for Steam Deck

The Steam Deck’s default controller is pretty good, but if you’re looking to arm yourself with the best Steam Deck accessories, then you might want a controller, too. If you’ve docked your device, you’re going to need a controller at some point. Especially if you’re on a TV. Who wants to whip out a keyboard and mouse on their couch? People who enjoy uncomfortable positions, that’s who.

For this, we’d always recommend the Xbox or Playstation DualSense controllers. These are natively supported within the UI of the Steam Deck and will work straight away with Bluetooth.

If you want to have something a little more reliable, or even to compete with the built-in paddles on the back of the Steam Deck, the Elite Series 2 and the upcoming DualSense Edge will be the way forward. Not interested in spending that much cash?

We’ve covered the PowerA Fusion Pro 2, which emulates these pro-end controllers, but for a lot less than the 180 starting price.

You can find more Steam Deck guides here, including how to swap SSDs, and install Windows.

If you click on a product link on this page we may earn a small affiliate commission.

It’s Time for Financial Institutions to Place Their Quantum Bets

Among the business sectors that quantum computing has the potential to transform, financial services stands out, for several reasons. First, the size of the prize is enormous—up to almost 70 billion in additional operating income for banks and other financial-services companies as the technology matures over the next several decades. Second, financial institutions continue to be among the most aggressive companies to embrace advanced technologies and develop practical applications. As an industry, financial services ranks at the top of BCG’s Digital Acceleration Index, which assesses digital capability and compares companies’ digital performance with peers. And third, a growing number of financial institutions are beginning to position themselves for a quantum future through recruiting, investments, and partnerships with technology companies.

Quantum computing is still in its infancy, but as it matures into adolescence, a Rapid rise in practical financial-services applications is well within reason. From a strategic standpoint, every financial institution of any size should recognize that this complex emerging technology could be both a game-changing opportunity and an existential threat.

Here’s a look at where quantum computing stands today in financial services, what leading players are doing, where the technology is likely to evolve in the near and longer terms, and how financial-services companies can play.

Quantum Benefits

Let’s start with the potential. Quantum computing can deliver a step change in the ability of financial institutions to solve three types of problems. (See Exhibit 1.)

Optimization. Financial institutions have multiple uses for optimization calculations, including portfolio allocation and rebalancing, capital allocation, cash management in ATM networks, financial arbitrage, and yield-curve fitting. The problem is, certain kinds of optimization problems are hard, if not impossible, for traditional computers to tackle. Adding discontinuous, nonconvex functions—such as interest-rate yield curves, trading lots, buy-in thresholds, and transaction costs—to investment models makes the optimization task incredibly complex. As a result, classical optimizers often either crash, take too long to compute, or—worse yet—mistake a local optimum for the global optimum. Myriad approximations are necessary to make sure that a computation will be performed within an acceptable time frame.

A mature quantum computer could perform much more accurate optimizations in a fraction of the time. For example, the quantum approximate optimization algorithm, introduced in 2014, can solve for a good solution in polynomial or practical time (depending on the size of the problem), while the same problem would require exponential time on a classical computer. In addition, another type of quantum computer, called an annealer, has been designed for Rapid optimization. In June 2020, Chicago Quantum developed a portfolio optimization of 40 stocks on a D-Wave annealer. “Portfolio optimization is computationally expensive… but there’d be a lot of appetite for quantum simulation that can make any improvement because turnover transaction cost can represent 2% to 3% of assets under management,” said the head of portfolio risk at a large US bank.

Machine Learning. Financial institutions have widely adopted machine learning (ML) to improve numerous business processes and try to find ways to better monetize their data. But for many problems, the time needed to train an ML algorithm on classical computers increases exponentially with the number of dimensions taken into account. Quantum computing could enable the industry to tackle complex analyses more effectively and accelerate existing ML techniques. For example, client clustering performed to predict creditworthiness could encompass many more inputs and identify previously unknown correlations, resulting in improved accuracy. Such capabilities have uses in credit scoring, predictive analytics, profit and loss attribution, and detecting money laundering and fraud. While actual increase in speed will ultimately depend on the problem to be solved, and still hinge on several open questions, quadratic acceleration is widely expected to be achievable, and many hope that exponential increases will follow.

Simulation and Pricing. The primary example here is the Monte Carlo method, which is computationally intensive, especially for longer-term and complex simulations. Arbitration between accuracy and efficiency in this field is both inevitable and common, and it leads to unnecessary risk taking, often of unknown extent. Being able to perform in-depth pricing and risk management computations almost in real time, without the need for model simplifications, would be a game-changer for the industry. “Detecting risk in real time for a bank allows you to allocate your capital better. That is worth billions,” said the director of financial mathematics at a leading US university. JPMorgan Chase has been researching the potential usage of quantum computing for option pricing. It designed the quantum circuits necessary to simulate European option pricing and showed that the accuracy of quantum computing is set to outpace the accuracy of classical Monte Carlo calculations in a quadratic fashion.

Potential Value—but When?

Applying quantum computing approaches to the above use cases would trigger three sources of value for financial-services companies:

Better Corporate Risk Management. Companies could plan better for, and have more time to react to, market, credit, and operational risk and to position themselves against extreme events. They could also make the most of scarce resources, such as capital and liquidity.
Improved Client Satisfaction. Companies can customize product offerings to make them more appealing and improve response time to customers’ requests for quotes.
Operational Excellence and Sustainability. Better predictive maintenance, higher optimal portfolio returns with lower transaction costs, reduced costs, and improved energy consumption all contribute to the bottom line.

We have previously estimated that quantum computing could unlock long-term value of 42 billion to 67 billion for financial institutions. In addition, the significantly lower energy consumption of quantum computing could support sustainability agendas.

But how quickly can this value be realized? (See Exhibit 2.) In the short-to-medium term—say, the next decade—we expect early, noisy, and error-prone quantum computers to generate a relatively modest 2 billion to 5 billion in operating income for financial institutions worldwide. For example, leveraging a quantum-inspired approach to combinatorial optimization would allow a business to take into account realistic elements of uncertainty that it is unable to consider now. This could result in incremental value for a bank or investment fund of 200 million to 450 million in the next decade. (This figure does not offer a value for the knowledge and experience gained.) As quantum computers become stable and error correction improves, the same institution could unlock value of up to 900 million in the following 15 years.

Focus on the Near Term

A few trends are driving near-term progress in quantum computing. One is the industry’s shift in FOCUS from theoretical research to practical applications that are powered either by custom-built quantum circuits running on quantum hardware or by quantum-inspired algorithms running on classical hardware. Companies working on quantum-inspired algorithms, such as Microsoft, hope that these algorithms will deliver incremental value in the near term and translate into meaningful increases in speed when more reliable quantum hardware is available.

Another trend is the advent of a vibrant ecosystem around the new technology, including major tech players (such as Alibaba, Amazon, Atos, Fujitsu, Google, Honeywell, IBM, and Microsoft), generalist startups (such as D-Wave Systems, QC Ware, Rigetti Computing, Xanadu, and Zapata Computing) and finance-focused startups (such as Multiverse Computing). A third is the FOCUS by quantum computing developers on making sure that actual value can be delivered sooner rather than later.

In the latter regard, developers are bringing out commercially available resources to help practitioners test, learn, and share how to leverage quantum computing for real-world applications. These include:

Easy-to-access quantum Cloud-based quantum computing power (Amazon, IBM, Microsoft)
Open-source quantum software development kits, most of which are interoperable with common programming tools, such as Python, one of the most popular programming languages in finance (IBM’s Qiskit, Rigetti’s Forest, Xanadu’s PennyLane)
Capability-building tools from software startups, including upskilling programs and explainable and transparent quantum algorithms
Knowledge sharing and partnerships through networks, such as the IBM Q Network and the Microsoft Quantum Network, as well as numerous conferences around the world sponsored by leading technical quantum participants

Financial Institutions Take Note

The financial-services industry has taken notice. In the past 18 months, several companies—including BBVA, CaixaBank, and JPMorgan Chase—have announced or publicly discussed experiments involving quantum computing applied to use cases in the three areas discussed above. BBVA has been pursuing the advantages of quantum algorithms in portfolio optimization of business-sized datasets, credit scoring, currency arbitrage, and derivative valuation. CaixaBank is using a quantum algorithm to assess the financial risk in mortgage and treasury bill portfolios. And JPMorgan, as mentioned above, has been exploring option pricing.

Banks and others are hiring more people with quantum skills. Our analysis of LinkedIn data found that 21 banks and insurance companies in the US and Europe have hired more than 115 people with quantum expertise as of June 2020. than 60% of these individuals are based in Europe, 28% in the US, and 10% in Asia. (Note that our insight into the latter is limited by the availability of data, particularly for China; the actual percentage is certainly larger. over, the substantial interest in quantum computing in the hedge fund industry, which is not known for telegraphing its intent, is not reflected in these figures.)

Financial-services firms are also pursuing investments in, and partnerships with, quantum computing companies. (See Exhibit 3.) So far, there are four main nonexclusive strategies.

The most common is partnering with tech incumbents active in the field, such as IBM and Microsoft. For their part, tech companies are putting significant effort into building comprehensive quantum computing ecosystems around their own technological solutions, bringing together academia, innovative quantum startups, and large potential client companies.

A second popular model is partnering with quantum startups. These younger players tend to have a bias for focusing on quantum software and algorithm developments.

A third model is partnering with academia and government agencies. These partnerships are likely to be regional in nature.

The fourth model is direct investment in quantum computing players, which is being pursued by financial firms aiming to get first-hand, and perhaps exclusive or semi-exclusive, access to knowledge and technology.

Financial firms that are actively and publicly investigating quantum computing include global players, such as Allianz, Barclays, Citigroup, Goldman Sachs, JPMorgan, and Mizuho. There are also plenty of national and regional companies, such as ABN Amro Bank, Anthem, BBVA, BMO, BNP Paribas, CaixaBank, Commonwealth Bank of Australia, NatWest Group, Nomura, Scotiabank, Standard Chartered, and UBS. In addition, hedge funds and high-frequency traders, among the most sophisticated industry players, have been actively investigating quantum computing technology for the past several years.

What Next?

Experts disagree on the exact speed and direction of quantum computing’s development. (Indeed, the industry has yet to reach consensus on the technology most likely to enable building quantum machines at scale.) But few doubt that its impact will be substantial and far-reaching. Since it is a true game-changing technology, and one that is not plug-and-play, financial institutions need time to build their quantum capabilities, acquire skills, and explore the quantum ecosystem. Those that move too slowly bear the risk of being sidelined by competitors when the technology translates into a bankable competitive advantage.

Companies can start by defining their quantum vision and strategy and performing an in-depth opportunity and risk assessment of quantum computing in the context of their business models. This assessment should involve an analysis of what is required to adapt the technology stack, build quantum awareness in the organization, and develop a strategic workforce plan, including the right partners to help in this transformative journey. Realizing this vision will likely be a multiyear effort, so while the impact of quantum computing may still be several years in the future, the planning clock is already ticking.

Many firms may need to accelerate ongoing digital transformation programs and make sure that their organizations are ready to act quickly and decisively, bringing together human and technological capabilities to become bionic. Taking advantage of paradigm shifts involves human skills and organizational capabilities as well as new tech. Companies that treat this component purely as a technology task will encounter big roadblocks. Those that have not already made substantial progress toward becoming bionic organizations will be at a disadvantage compared with competitors that have. BCG’s 2019 Digital Acceleration Index research found that more than 25% of financial-services companies worldwide qualify as digital champions. Companies in Asia scored particularly high.

Firms also need to launch specific actions to improve their organizations’ quantum literacy. Exploring quantum-inspired algorithms is a great starting point. A small team of quantum enthusiasts can help a quantum culture take root, which is essential to attract the internal capabilities necessary to overcome what will likely be a sustained talent shortage as the technology gains traction. They must engage actively with the quantum ecosystem to identify relevant partners to work with.

A company-wide quantum playbook and roadmap, updated annually, should detail the quantum opportunities and threats for each line of business. This will provide the basis for developing plans to prioritize software and algorithm development (patenting when possible to build entry barriers). It should be hardware agnostic, at least at the early stages in order to build potential early adopter advantage, but companies should monitor hardware and software breakthroughs to spot when it’s time to accelerate and scale.

In addition to the business benefits, there is one other reason for financial institutions to get into the quantum computing game: the technology is already widely expected to break public-key cryptography, which secures the confidentiality and authenticity of most of our current applications and protocols, within the next 10 to 15 years. By the nature of their activities, banks are particularly vulnerable to this development and need to prepare now for the transition to post-quantum cryptography. Given our experience with transitions that were less demanding (such as those to MD5 and SHA1), we think that the window for upgrading existing cryptographic infrastructure is closing rapidly.

Authors

Managing Director Partner

Managing Director Senior Partner

About Boston Consulting Group

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It’s Time for Financial Institutions to Place Their Quantum Bets

Quantum Benefits

Let’s start with the potential. Quantum computing can deliver a step change in the ability of financial institutions to solve three types of problems. (See Exhibit 1.)

Potential Value—but When?

Applying quantum computing approaches to the above use cases would trigger three sources of value for financial-services companies:

Better Corporate Risk Management. Companies could plan better for, and have more time to react to, market, credit, and operational risk and to position themselves against extreme events. They could also make the most of scarce resources, such as capital and liquidity.
Improved Client Satisfaction. Companies can customize product offerings to make them more appealing and improve response time to customers’ requests for quotes.
Operational Excellence and Sustainability. Better predictive maintenance, higher optimal portfolio returns with lower transaction costs, reduced costs, and improved energy consumption all contribute to the bottom line.

We think this timeline could prove to be overly conservative given the quickly evolving quantum computing landscape. During the so-called noisy intermediate-scale quantum era, when quantum devices will be plagued by high error rates that limit their functionality, quantum-inspired algorithms (quantum algorithms running on a classical computer) and hybrid approaches (mixing quantum and classical computing) could help businesses create significant value and prepare for the longer-term quantum leap. Carlos Kuchkovsky, the global head of research and patents for BBVA, said in July of this year, “Although this technology is still in an early stage of development, its potential to impact the sector is already a reality. Our research is helping us identify the areas where quantum computing could represent a greater competitive advantage, once the tools have sufficiently matured. We believe this will be, for certain concrete tasks, in the next two to five years.”

Focus on the Near Term

Easy-to-access quantum Cloud-based quantum computing power (Amazon, IBM, Microsoft)
Open-source quantum software development kits, most of which are interoperable with common programming tools, such as Python, one of the most popular programming languages in finance (IBM’s Qiskit, Rigetti’s Forest, Xanadu’s PennyLane)
Capability-building tools from software startups, including upskilling programs and explainable and transparent quantum algorithms
Knowledge sharing and partnerships through networks, such as the IBM Q Network and the Microsoft Quantum Network, as well as numerous conferences around the world sponsored by leading technical quantum participants

Financial Institutions Take Note

Financial-services firms are also pursuing investments in, and partnerships with, quantum computing companies. (See Exhibit 3.) So far, there are four main nonexclusive strategies.

A second popular model is partnering with quantum startups. These younger players tend to have a bias for focusing on quantum software and algorithm developments.

A third model is partnering with academia and government agencies. These partnerships are likely to be regional in nature.

What Next?

Authors

Managing Director Partner

Managing Director Senior Partner

About Boston Consulting Group

© Boston Consulting Group 2023. All rights reserved.

Quantum attack would trigger Great Depression, think tank warns

Never mind the cyber doomsday predictions of artificial intelligence ravaging the world as we know it. Now you can add a future quantum computer-powered cyberattack to the list of technologies-gone-wrong that experts warn could decimate the U.S. economy and trigger another Great Depression.

For years experts have warned of the dangers of a quantum attack, which would have the power to unlock encryption algorithms and expose protected data such as banking records. Now a fresh analysis of a quantum cyberattack against the U.S. financial sector estimates the cost to the U.S. economy at 3.3 trillion, according to think tank the Hudson Institute.

In a just-released report (PDF) Prosperity at Risk: The Quantum Computer Threat to the US Financial System, the Hudson Institute said once the technology is developed, the financial sector will be a prime target for quantum attacks.

The Hudson Institute says the financial sector must move quickly to protect itself against such an attack, even though the quantum computing power needed by an adversary may not be available for several years.

“Despite the many benefits that quantum computing is poised to bring to the financial sector, the threat of quantum-enabled cyberattacks and, more specifically, quantum decryption holds the potential to outweigh any gains in computational efficiency and accuracy,” authors Arthur Herman and Alexander Butler wrote.

The positives and negatives of quantum computing

A small group of government-funded labs, industry titans like IBM and Google, have been working on quantum computing for years. Each has steadily increasing the number of cubic bits – or qubits – their supercomputers are capable of processing.

Quantum computing is on track to eventually unleash an exponential leap in computing power, which could potentially be used by adversaries for hacking. Experts believe it will be 5-10 years before quantum computers become capable of processing the number of qubits necessary to break classical encryption algorithms like RSA.

The Hudson Institute report said the financial sector needs to begin preparing now for future quantum attacks.

“The impact of a cascading quantum attack on major banks, the Federal Reserve, or stock exchanges and derivative exchanges could be calamitous for the United States and the global economy. The risk of a catastrophic attack and financial collapse rises to levels that eclipse the 2008–09 crisis or the Great Depression.”

The report focused on an attack that results in a breakdown in the interbank payment system, specifically real-time gross settlement (RTGS) systems such as the Fedwire Funds Service that the U.S. Federal Reserve provides.

“Once a cryptographically relevant quantum computer exists, it could access the Fedwire network and initiate a disruption to payments, cause coordination failures within the system that hinder efforts toward resilience, and ultimately irreparably affect the U.S. economy,” the report said.

The Hudson Institute analyzed the impact such a hack would have on the economy and concluded it would result in a 10 to 17 percent decline in annual real GDP resulting in indirect losses of between 2 trillion and 3.3 trillion.

How a quantum computer attack on Fedwire could unfold

Experts agree that today, the U.S. financial sector is dangerously vulnerable to traditional cyberattacks. Even if it were to reduce that vulnerability, the sector would remain susceptible to attacks by future quantum computers capable of defeating public encryption regimes.

Research by the New York Federal Reserve found an attack on a single large bank could spread to nearly 40 percent of the U.S. financial network.

“The high degree of interconnectivity within the financial sector can augment financial contagion and spread systemic risk,” the Hudson Institute report said.

“Given the role of payment and settlement systems as critical financial market infrastructure, any successful attack against an RTGS system could have extreme consequences. [I]f conditions prevent the settlement of cross-border and domestic transactions between banks operating within the Fedwire RTGS system, a cyberattack could lead to liquidity issues for receiving parties, contract breaches, and payment and obligation failures, among other issues.”

The U.S. financial sector stood out as a prime target for a cyberattack, in terms of both exposure and potential impact, the Hudson Institute said.

“Given their high dependence on technology, numerous network connections, and vital role in the financial system, systematically important RTGS systems—such as Fedwire—are prime targets for malign cyber actors keen on causing maximum damage to the system.”

The potential for systemic risk was demonstrated by the 2017 global NotPetya cyberattack which, despite targeting Ukraine, cost Maersk 1.4 billion in losses.

Steps to protect the finance sector against quantum attacks

Following a multi-year project to identify and vet a handful of new encryption algorithms that can help protect federal computers and systems from hacking threats powered by quantum computing, the National Institute for Standards and Technology last year announced four new algorithms that will underpin its future cryptography standards by 2024.

The Post-Quantum Cryptography (PQC) standards include one algorithm for general encryption purposes (CRYSTALS-Kyber) and another three for digital signatures and identity verification (CRYSTALS-Dilithium, Falcon and Sphincs).

The Hudson Institute report recommends the Fedwire protect itself from future quantum computer threats adopting the NIST PQC standards and replacing legacy encryption systems. It also recommends Congress set a deadline for all 12 Federal Reserve banks to be quantum-secure.

“If you were having a dispute with the United States in other ways and you wanted to make it more complicated, why not take down the financial system as a distraction?,” said Alex Pollock, a former deputy director of the Treasury Department’s Office of Financial Research in response to the report.

“If you were having a dispute with the United States in other ways and you wanted to make it more complicated, why not take down the financial system as a distraction?”

John Prisco, CEO of Quantum Safe, said urged a multi-pronged strategy to thwart a quantum attack rather than relying on one encryption technology. “Imagine if China had already figured out how to break into CRYSTALS-Kyber. That would be a disaster, but would they tell us? I don’t think so,” he said.

Simon Hendery is a freelance IT consultant specializing in security, compliance, and enterprise workflows. With a background in technology journalism and marketing, he is a passionate storyteller who loves researching and sharing the latest industry developments.

Halcyon partners with RevelStoke to boost efficiency of security teams

Cybersecurity startups Halcyon Tech and Revelstoke Security have collaborated to improve security operation team efficiency through the integration of the Halcyon platform’s cyber resilience and attack prevention capabilities with the low-code security orchestration, automation, and response features of Revelstoke, according to SiliconAngle.

Infostealers compromise 101,134 ChatGPT accounts

Group-IB researchers said the Asia-Pacific region saw the largest number of ChatGPT accounts stolen by infostealers between June 2022 and May 2023.

Federal post-quantum cryptography readiness examined

Numerous federal agencies, including the Departments of Homeland Security, Health and Human Services, and Commerce, reported that they were able to keep up with post-quantum cryptography requirements imposed by the Office of Management and Budget amid the imminent threat of quantum cyberattacks, according to FedScoop.

Sources:

https://www.idquantique.com/quantum-safe-security/applications/banking-solutions/
https://www.dexerto.com/tech/best-steam-deck-accessories-1972277/
https://www.bcg.com/publications/2020/how-financial-institutions-can-utilize-quantum-computing
https://www.bcg.com/publications/2020/how-financial-institutions-can-utilize-quantum-computing
https://www.scmagazine.com/news/emerging-technology/quantum-attack-would-trigger-great-depression-think-tank-warns

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