QKD can provide the strongest form of data confidentiality possible as of today

QKD can provide the strongest form of data confidentiality possible as of today

For the financial and banking sector, cyber security is the number one priority over all other technology areas. A recent report by Moody’s based on a survey of 88 banks from across the globe concludes that the banking industry is making major investments in cybersecurity across institutions of varying sizes and credit quality. This is largely motivated by the fact that the sector consistently ranks at the top when it comes to the most targeted sectors. One of the key questions for the sector is, thus, what steps they should take to mitigate risks which in turn means staying ahead of new technological developments and possibilities in order to choose the safest and most cost-effective solutions.

In a recent collaboration supported by Copenhagen Fintech , Ulrich Hoff , Tobias Gehring , and Nitin Jain from DTU Physics , together with KPMG Denmark and Danske Bank , conducted a feasibility study on deployment of #QKD (quantum key distribution) for data center security. They conclude that the issue of data security cannot be overlooked anymore, and it is not only about the legal and economic consequences; the reputational damage due to data breaches or leaks can be just as significant.


QKD ENSURES CRYPTOAGILITY

While QKD can provide the strongest form of data confidentiality possible today, the practical costs and challenges of deploying the technology are still fairly considerable. However, both the scientific community and industry are working towards lowering costs, improving performance, and engaging in standardization, and as a result, deploying QKD in the near future can be expected to become more affordable and feasible.

With the growing competition for hosting services, a higher level of security may also be a worthwhile differentiator. More precisely, a key motivation for adopting the technology would be to provide users with the lowest possible risk of a security breach in a future where quantum computers become a reality. In fact, QKD has quite a natural space in such a crypto-agile environment and can ensure crypto-agility.

A hidden advantage is that a strategic decision to investigate QKD integration will necessarily trigger a risk assessment that obligates the data center owner to review their current infrastructure. So, even though the eventual outcome is not to adopt QKD, an exploration of new tools and opportunities to enhance security can nevertheless be expected.


DANSKE BANK IS A FRONTRUNNER IN EXPLORING QKD

While QKD may seem like a technology of the future for many companies, one Danish bank has already taken first steps; since 2020, Danske Bank has been involved in a QKD innovation project headed by researchers at DTU, and in 2022 they were jointly able to successfully take quantum communication out of the lab and use it to transfer data securely. That was an apparent breakthrough in developing digital communication and the race against cyber criminals.

- As a bank, we have a responsibility to constantly seek new ways to protect our customers’ data and ensure that we are a step ahead of the criminals in the tech arms race,” states Lance McGrath , Chief Security Officer from Danske Bank .

 The interest in QKD and safe communication solutions are shared by the Danish government, which recently decided to support the project QCI.DK to establish a Danish Quantum Communication Infrastructure as part of the pan-European infrastructure EuroQCI. QCI.DK will establish and test an experimental quantum-proof network between several public authorities but also train the partners and other stakeholders in quantum key distribution (QKD). Companies and institutions interested in learning more about the QCI.DK or how to get started with QKD for data center security are welcome to contact the DTU researchers behind the feasibility study.


DOWNLOAD THE FEASIBILITY STUDY HERE


Copenhagen Fintech supported the project as part of the “National Position of Strength programme for Finans & Fintech,” funded by the Danish Ministry of Higher Education and Science.

Sources:

Cyber Security is Top IT Priority for the Finance and Banking Sector in 2023 - Fintech Finance (ffnews.com)

Danske Bank helps researchers reach milestone within it-security

Banks outpace other industries in cyber investments, defense strategies: report | Cybersecurity Dive

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