Governments across the G7 have issued an urgent call for businesses to overhaul their cybersecurity strategies in anticipation of quantum computing. The group argues that quantum machines, once fully developed, will be able to crack the encryption algorithms that currently protect everything from email and online banking to national infrastructure. A coordinated statement from the bloc urges organizations to transition to post-quantum cryptographic standards as quickly as possible, rather than waiting for the first large-scale attacks to arrive.

The warning centers on the fact that quantum computers operate fundamentally differently from classical computers. Instead of using bits that are either zero or one, quantum machines use qubits, which can represent both states simultaneously. This allows quantum algorithms to solve certain mathematical problems exponentially faster than any conventional system. In particular, quantum computers are expected to undermine the security assumptions of RSA and elliptic-curve cryptography, the two most widely used methods for digital signatures and secure key exchange.

Why businesses must act now

The G7 message is not the first such admonition, but it adds a new level of urgency. Previous statements from national cybersecurity agencies, including the European Union Agency for Cybersecurity, have emphasized the concept of harvest now, decrypt later. In this scenario, malicious actors steal encrypted data today but do not bother to decrypt it. Instead, they store it until quantum systems mature enough to crack it. This means that any sensitive information sent over the internet or stored in cloud systems could be exposed in the future, even if it remains secure for the next several years.

Businesses and government agencies that handle sensitive personal data, intellectual property, or financial transactions are especially at risk. Long-term infrastructure projects, public records, and confidentiality agreements with durations of over ten years need to be protected far beyond the lifetime of current cryptographic standards. Security analysts say that cyber resilience is not a one-time investment but a continuous and evolving process. Although no quantum computer has yet been demonstrated at a scale needed to break real-world encryption, researchers have already carried out proof-of-concept attacks on small cryptographic keys using quantum algorithms.

The push for post-quantum cryptography

The G7 statement encourages businesses to examine the new encryption tools developed by standards bodies such as the United States National Institute of Standards and Technology. In 2024, NIST finalized three post-quantum algorithms: ML-KEM, derived from CRYSTALS-Kyber; ML-DSA, derived from CRYSTALS-Dilithium; and SLH-DSA, based on SPHINCS+. These algorithms are designed to run on existing computer networks but rely on mathematical problems that quantum computers cannot efficiently solve. Several major technology companies have already started deploying or testing these standards in their products and internal infrastructures, the G7 noted.

The transition to these new algorithms is not trivial. For most organizations, it is not enough to simply replace a few encryption keys. Cryptographic systems are deeply embedded into network protocols, software stacks, cloud services, and hardware devices. Migration entails doing a complete inventory of every cryptographic asset, understanding where and how encryption is used, and developing a phased plan to swap old algorithms for new ones. That is why the G7 is pressing companies to begin now, rather than waiting until the actual quantum threat is present on a wide scale.

What the G7 statement includes

• An explicit call to prioritize the adoption of post-quantum crypto standards.
• A suggestion to create internal working groups that are responsible for quantum readiness.
• Encouragement for firms to develop cryptographic agility, meaning the ability to quickly replace algorithms if vulnerabilities emerge.
• A recommendation to work with technology vendors to map out the availability and interoperability of quantum-resistant products.
• A request for cooperation on an international scale, as cyber threats do not respect national borders.

The G7, which comprises Canada, France, Germany, Italy, Japan, the United Kingdom, and the United States, has repeatedly acknowledged the economic impact of a successful large-scale cyberattack. A report by the World Economic Forum estimated that cybercrime could cost the global economy trillions of dollars annually, and quantum computing is expected to become one of the accelerators behind that figure if countries and companies do not act. In related statements, G7 finance ministers have stressed that the reliance of the global financial sector on legacy encryption strategies represents a systemic risk. The group requested that regulators and auditors incorporate quantum-related risks into their assessment frameworks by 2025.

How companies should respond

Security experts advise businesses to start with a cryptographic inventory. This involves identifying every system, application, and third-party service that uses encryption to protect data or authenticate users. Once this mapping is complete, organizations can prioritize which assets need immediate transition, particularly those handling data that must remain confidential for decades.

Next, companies should watch the development of international standards and test suites. The ISO and the International Telecommunication Union are expected to adopt new algorithmic standards as they become stable. Enterprises can also set up middleware that enables crypto-agility by allowing abstraction layers between applications and encryption libraries. This kind of architecture makes it easier to replace a vulnerable algorithm with a quantum-safe one without having to rewrite the entire software application.

It is also essential to modernize vendor contracts and procurement standards. When a business purchases software or hires a cloud service provider, it is effectively entrusting that partner with the security of its data. Under a future quantum environment, the

Source: TechRadar News