Quantum Computing in US Banking: The Future of Fraud Prevention and Financial Crime Detection

Abstract

As an attempt to fight sophisticated financial crimes, US banks are getting into new technologies on this front, and quantum computing can be viewed as a game changer in this area. Unmatched computational power is available through quantum technology for use in fraud detection that is ahead of its time, real-time transaction monitoring, and quantum resistant encryption. Quantum computing, therefore, offers solutions for financial institutions that are currently facing threats of cyber-attacks, insider fraud, and compliance to various regulations with its quantum enhanced artificial intelligence (QAI) and quantum safe encryption. The adoption of the quantum computing, however, is met with a great number of challenges, such as high implementation costs, a shortage of qualified staff and constantly changing cybersecurity threats. Quantum powered cyber-attacks requires transition from the classical cryptography to the post quantum cryptography to protect sensitive banking data. Regulatory compliance is still a major issue even for banks, and the goal for the industry is to collaborate between banks, tech firms, and government agencies in order to create industry wide security standards. For US banks to prepare for this quantum powered future, they will need to spend in research, develop strategic partnerships, and train their cybersecurity professionals. As quantum technology is adopted at the beginning, quantum fraud prevention technologies