Page 235 - Cyber Defense eMagazine RSAC Special Edition 2025

a small nonzero integer solution that satisfies the given equation. These two mathematical problems
attempt to make this cryptography quantum proof.

Stateless hash-based cryptography (SPHINCS+) utilizes cryptographic hash functions and Merkle trees
to create digital signatures that are believed to be resistant to quantum attacks. This is believed to be
quantum resistant due to the hash functions designed to be one-way and highly linear. This means they
do not have an algebraic structure that can be as easily exploited by quantum algorithms.

B. Challenges of PQC Adoption and Implementation

To navigate the new complexities PQC presents, organizations need to prioritize "crypto agility," the
ability to quickly and seamlessly switch between cryptographic algorithms as threats evolve and new
standards emerge. This will likely require infrastructure upgrades across various systems and
applications. During the transition period, some organizations might also consider adopting hybrid
cryptographic systems that combine existing and post-quantum algorithms to provide an added layer of
security.

VII. Potential Financial Damages

A. Potential Impacts

Quantum decryption of stolen personal and financial data could trigger a surge in identity theft and
financial fraud, as criminals exploit previously inaccessible information. Furthermore, the exposure of
sensitive personal details, such as medical histories and private communications, could cause significant
erosion of personal privacy.

For organizations, the ability of quantum computers to decrypt previously stolen data could result in
substantial financial losses due to data breaches, corporate espionage, and potential legal liabilities. The
exposure of sensitive corporate information, such as trade secrets and strategic plans, could provide
competitors with an unfair advantage, leading to significant financial harm. Organizations could face
significant reputational damage and a loss of customer trust if their previously secured data is exposed
due to quantum decryption.

B. Quantifying Potential Future Damages

Quantifying financial damages from future quantum decryption is challenging, but existing reports offer
insight into the potential scale of the impact. A report from the Hudson Institute's Quantum Alliance
Initiative estimated that a quantum-enabled attack on the Federal Reserve's payment system could result
in a direct loss of 10-17% of US GDP and between $2 and $3.3 trillion in indirect losses. While these
figures represent current data breach costs and specific potential scenarios, they highlight the immense
financial risks associated with the future decryption of sensitive data.

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