Australia Reserve Bank Governor Michele Bullock explained that she is concerned about a new form of computer technology that would be able to defeat existing security systems and assist scammers in stealing individuals’ money and identities. Addressing a meeting in Sydney on Thursday, Bullock cautioned that quantum computing would ultimately render today’s security measures obsolete.Â
She warned that the banking sector should automate its security systems before that can happen. “Fighting fraud and scams will undoubtedly take even more innovation, flexibility and collaboration from the payments industry,” Bullock said to an audience at the Opera House. She said criminals won’t desist from looking for new methods of stealing individuals’ information and funds.
What Makes Quantum Computers So Dangerous
Quantum computers are way more capable than even the most powerful computers now. Modern security systems employ codes that would be unbreakable using normal computers for millions or even billions of years. But quantum computers would be able to break these very same codes within days or even hours.
Last year, a study at the University of New South Wales discovered that computer security systems used to safeguard computer networks worldwide could be easily cracked using quantum computers. Dr Fida Hasan, who conducted the study, said there are forecasts that these computers will be invented within the next decade.
“With today’s traditional supercomputers, it would still take millions or even billions of years to breach those security systems, but with the capabilities of quantum computers, the process of decrypting those algorithms would take much less time, perhaps a day or less,” Dr Hasan said.
Banks Need to Upgrade Protection
Bullock explained that banks and other financial institutions must migrate to a new security mechanism known as Advanced Encryption Standard, or AES. The mechanism is meant to be secure even when quantum computers are in widespread use.
When journalists questioned whether the biggest threat to the payment system in Australia was quantum computing, Bullock conceded she finds it scary. “It’s something I am concerned about,” she told them. “If you trust what they have to say about quantum computing, what takes 200 years k to decrypt now, to crack, will take a few minutes. So it is a significant threat.”
She also said new security protocols have been written to deal with quantum computing, but that things are still frightening. “Right now, we rely on our banks to secure our information and they do it through encryption,” Bullock said. “So it is a concern that we must ensure we stay in step with that quantum computing scenario, because otherwise it’s not secure.”
Scams Already Costing Australians Millions
The alert coincides with the fact that Australians are already losing enormous amounts of money to scams. Australians lost a total of $173.8 million in financial fraud and scams during the first half of this year, the Australian Competition and Consumer Commission reports. This is 26 per cent higher than the same time last year.
ACCC deputy chair Catriona Lowe said in August that technology is helping scammers reach more people than before. “We see scams becoming more sophisticated and harder for people to detect,” she said.
News At Glance
- Reserve Bank chief warns quantum computers have the potential to shatter bank security in minutes
- Millions of years are needed to crack current security codes but not with quantum computers
- Banks must transition to new Advanced Encryption Standard protection systems
- Australians have already lost $173.8 million to scams in the first half of 2025
- Scientists forecast quantum computers capable of cracking codes within the next ten years
FAQs
Q1: What is quantum computing?
Quantum computing is a new type of computer technology that is much more powerful than current computers and can solve problems much faster.
Q2: How could quantum computers help scammers?
They would be able to crack existing security codes in days or hours rather than the millions of years it would take normal computers.
Q3: When are quantum computers likely to become a threat?
Quantum computers that are able to crack existing security have been predicted by some as being created within the next decade.
Q4: How can banks defend against this threat?
Banks need to upgrade to Advanced Encryption Standard security systems that are designed to resist quantum computing attacks.
Q5: How much are Australians losing to scams now?
Australians lost $173.8 million to scams in the first half of 2025, which is 26 per cent more than last year.
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