A quantum computer has been successfully used to catch a money mule network in an experiment conducted by Lloyds Banking Group and IBM.
Financial institutions have been increasingly investing in quantum capabilities, with strong belief in the industry that the technology could become an invaluable tool in dealing with fraud.
Lloyds has been investing heavily into the use of quantum and to that end launched the experiment using a 156-qubit quantum computer owned by IBM.
In the experiment, multiple quantum algorithms were used to detect patterns across transaction data to find a deliberately embedded money mule network operation.
The team was successfully able to identify the money mule in a major demonstration of how quantum can be used to detect fraud.
Money mule networks are criminal organisations that disguise fraudulently acquired funds through various webs of other transactions. Money mule activity is considered a major enabler of scams and fraud.
“Financial crime is becoming more complex and more network‑driven, which means we need to keep pushing the boundaries of technology to protect customers,” said Ron van Kemenade, chief operating officer at Lloyds Banking Group.
“While quantum computing is still emerging, this experiment has allowed us to translate research into practical insights, while building a strong internal community of quantum experts that will continue to explore future use cases and applications as the technology evolves.”
Scott Crowder, vice president of IBM quantum adoption and business development added: “Our collaboration with Lloyds Banking Group demonstrates how forward-looking financial organisations can begin conducting meaningful quantum research.
“IBM is excited to continue collaborating with financial institutions like Lloyds and further explore how quantum computing could support the future of financial services.”