Hackers are waiting for the moment quantum computing breaks cryptography and enables the mass decryption of years of stolen information. In preparation, they are harvesting even more encrypted data than usual. Here is what businesses can do in response.

Why are hackers harvesting encrypted data?

Most modern organizations encrypt multiple critical aspects of their operations. In fact, about eight in 10 businesses extensively or partially use enterprise-level encryption for databases, archives, internal networks and internet communications. After all, it is a cybersecurity best practice.

Alarmingly, cybersecurity experts are growing increasingly concerned that cybercriminals are stealing encrypted data and waiting for the right time to strike. Their worries are not unfounded — more than 70% of ransomware attacks now exfiltrate information before encryption. 

The “harvest now, decrypt later” phenomenon in cyberattacks — where attackers steal encrypted information in the hopes they will eventually be able to decrypt it — is becoming common. As quantum computing technology develops, it will only grow more prevalent.

How ‘harvest now, decrypt later’ works

Quantum computers make the “harvest now, decrypt later” phenomenon possible. In the past, encryption was enough to deter cybercriminals — or at least make their efforts pointless. Unfortunately, that is no longer the case.

Whereas classical computers operate using binary digits — bits — that can either be a one or a zero, their quantum counterparts use quantum bits called qubits. Qubits can exist in two states simultaneously, thanks to superposition. 

Since qubits may be a one and a zero, quantum computers’ processing speeds far outpace the competition. Cybersecurity experts are worried they will make modern ciphers — meaning encryption algorithms — useless, which has inspired exfiltration-driven cyberattacks. 

Encryption turns data, also known as plaintext, into a string of random, undecipherable code called ciphertext. Ciphers do this using complex mathematical formulas that are technically impossible to decode without a decryption key. However, quantum computing changes things.

While a classical computer would take 300 trillion years or more to decrypt a 2,048-bit Rivest-Shamir-Adleman encryption, a quantum one could crack it in seconds, thanks to qubits. The catch is that this technology isn’t widely available — only places like research institutions and government labs can afford it.

That does not deter cybercriminals, as quantum computing technology could become accessible within a decade. In preparation, they use cyberattacks to steal encrypted data and plan to decrypt it later.

What types of data are hackers harvesting?

Hackers usually steal personally identifiable information like names, addresses, job titles and social security numbers because they enable identity theft. Account data — like company credit card numbers or bank account credentials — are also highly sought-after.

With quantum computing, hackers can access anything encrypted — data storage systems are no longer their primary focus. They can eavesdrop on the connection between a web browser and a server, read cross-program communication or intercept information in transit. 

Human resources, IT and accounting departments are still high risks for the average business. However, they must also worry about their infrastructure, vendors and communication protocols. After all, both client and server-side encryption will soon be fair game.

The consequences of qubits cracking encryption

Companies may not even realize they have been affected by a data breach until the attackers use quantum computing to decrypt the stolen information. It may be business as usual until a sudden surge in account takeovers, identity theft, cyberattacks and phishing attempts. 

Legal issues and regulatory fines would likely follow. Considering the average data breach rose from $4.35 million in 2022 to $4.45 million in 2023 — a 2.3% year-over-year increase — the financial losses could be devastating. 

In the wake of quantum computing, businesses can no longer rely on ciphers to communicate securely, share files, store data or use the cloud. Their databases, archives, digital signatures, internet communications, hard drives, e-mail and internal networks will soon be vulnerable. Unless they find an alternative, they may have to revert to paper-based systems.

Why prepare if quantum isn’t here yet?

While the potential for broken cryptography is alarming, decision-makers should not panic. The average hacker will not be able to get a quantum computer for years — maybe even decades — because they are incredibly costly, resource-intensive, sensitive and prone to errors if they are not kept in ideal conditions.

To clarify, these sensitive machines must stay just above absolute zero (459 degrees Fahrenheit to be exact) because thermal noise can interfere with their operations. 

However, quantum computing technology is advancing daily. Researchers are trying to make these computers smaller, easier to use and more reliable. Soon, they may become accessible enough that the average person can own one. 

Already, a startup based in China recently unveiled the world’s first consumer-grade portable quantum computers. The Triangulum — the most expensive model — offers the power of three qubits for roughly $58,000. The two cheaper two-qubit versions retail for less than $10,000.

While these machines pale in comparison to the powerhouse computers found in research institutions and government-funded labs, they prove that the world is not far away from mass-market quantum computing technology. In other words, decision-makers must act now instead of waiting until it is too late. 

Besides, the average hacker is not the one companies should worry about — well-funded threat groups pose a much larger threat. A world where a nation-state or business competitor can pay for quantum computing as a service to steal intellectual property, financial data or trade secrets may soon be a reality. 

What can enterprises do to protect themselves?

There are a few steps business leaders should take in preparation for quantum computing cracking cryptography. 

1. Adopt post-quantum ciphers

The Cybersecurity and Infrastructure Security Agency (CISA) and the National Institute of Standards and Technology (NIST) soon plan to release post-quantum cryptographic standards. The agencies are leveraging the latest techniques to make ciphers quantum computers cannot crack. Firms would be wise to adopt them upon release. 

2. Enhance breach detection

Indicators of compromise — signs that show a network or system intrusion occurred — can help security professionals react to data breaches swiftly, potentially making data useless to the attackers. For example, they can immediately change all employees’ passwords if they notice hackers have stolen account credentials.

3. Use a quantum-safe VPN

A quantum-safe virtual private network (VPN) protects data in transit, preventing exfiltration and eavesdropping. One expert claims consumers should expect them soon, stating they are in the testing phase as of 2024. Companies would be wise to adopt solutions like these.

4. Move sensitive data

Decision-makers should ask themselves whether the information bad actors steal will still be relevant when it is decrypted. They should also consider the worst-case scenario to understand the risk level. From there, they can decide whether or not to move sensitive data. 

One option is to transfer the data to a heavily guarded or constantly monitored paper-based filing system, preventing cyberattacks entirely. The more feasible solution is to store it on a local network not connected to the public internet, segmenting it with security and authorization controls.

Decision-makers should begin preparing now

Although quantum-based cryptography cracking is still years — maybe decades — away, it will have disastrous effects once it arrives. Business leaders should develop a post-quantum plan now to ensure they are not caught by surprise. 

Zac Amos is features editor at ReHack.

A hopeful entrant in the emerging market of electric watercraft is out of action and being sold for parts.

Pure Watercraft was founded in 2011 with the intention of replacing gas-based outboard motors with fully electric ones. We covered the company in 2016 when it began taking preorders for its first commercial outboards, and in 2020 Pure raised $23 million to step up production. GM even took a 25% stake in Pure as part of its big investment in electric infrastructure.

The company offered a electric outboard and battery combo that could be mounted on a boat like any other outboard, or in a package with a rigid inflatable or pontoon boat. With prices ranging from $21,600 for just propulsion to nearly $100,000 for a full boat, Pure’s products were arguably no more affordable up front than gas options, but they were certainly a lot cleaner and quieter.

But a tough market seems to have put an end to Pure’s ambitions. The company entered receivership — a sort of alternative form of bankruptcy — in July, per filing documents in King County, Washington, where it is based. In August it was also reported that a planned multi-million-dollar factory in West Virginia would not be going forward.

The documents describe numerous creditors, from individual investors to banks to the big one, GM, which put approximately $35 million into the venture. That wasn’t all cash, though: listed among Pure’s assets is some $25 million worth of “manufacturing support,” “know-how,” licensing of the name, and other forms of non-pecuniary goods. (This type of in-kind investment is fairly commonplace.)

On the asset side, we find $3.6 million in “finished goods,” likely the assembled motors and battery units built by Pure, though why those would not have gone out to the more than 900 people who paid a down payment is unclear (nor is whether refunds will be issued). Another $25.5 million of “raw materials” is also listed, but what this may be is unclear — other documents detailing sale of assets like boats and batteries don’t come near that sum.

TechCrunch has asked both Pure and GM for comment on the matter. GM did not offer a substantive response and we have not yet heard back from Pure.

Electric watercraft is a growing but still nascent industry, with startups like Candela, Navier, FleetZero and Zin Boats making a play for cleaner, more efficient waterways and infrastructure.

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iodyne has announced the Pro Mini SSD, a portable, bus-powered storage solution designed for professionals. The Pro Mini features a durable machined aluminum chassis with Frore AirJet membrane vibration cooling to prevent thermal throttling and ensure the SSD delivers consistent performance even under heavy data loads.

Iodyne claims the device achieves sustained performance of over 3GB/s, making it ideal for tasks like video editing, media offloading, and data transfer. Pro Mini provides solid security through XTS-AES-256 encryption and RAID-6 data protection, safeguarding data even in the event of a hardware failure. Passkeys replace traditional passwords, allowing users to securely unlock the device with their phone or computer. It offers NFC tap-to-unlock functionality too.

The race toward achieving AGI (artificial general intelligence) continued apace with what felt like a monumental week in the rapid development of AI.

From Apple giving us a taste of its Intelligence to huge advances in AI-generated video, let’s take a look at some of the top AI stories from this week.

Apple Intelligence soft launches

It was an eventful week for the Cupertino-based device manufacturer. We saw the public debut of iOS 18, WatchOS 11, and MacOS 15, immediately followed by the iPhone 16 and Apple Watch 10 going on sale, as well as Apple rolling out its first update to the new OS with 18.1 beta.

The beta doesn’t offer the AI’s full feature suite — we don’t expect to see that until 18.1’s official release in October — but it is enough to give interested users a taste of what the generative AI agent will soon be capable of.

Though, from what Digital Trends already seen, Apple Intelligence is going to likely need more refinement and polish before it’s ready for the public.

Lionsgate partners with Runway to train AI video models

Weird, I could have sworn last summer’s Hollywood writers strike happened specifically in opposition to Hollywood’s ill-considered embrace of generative AI. That collective action has apparently done little to dissuade Lionsgate from jumping right back on the AI bandwagon, which announced this week that it is partnering with Runway, makers of the Gen-3 Alpha video generation model.

The agreement will see the two companies collaborate to develop and train a video generation model using Lionsgate’s expansive catalog of film and TV content. The two plan to use it to “develop cutting-edge, capital-efficient content creation opportunities,” which we all know is the hallmark of great cinema and not a poorly conceived attempt to disenfranchise the thousands of storyboard artists, lighting and effects designers, actors, musicians, and others that perform the actual labor of producing movies and TV series by replacing them with a slapped-together generative AI.

Snap releases new, gigantic, Spectacles AR glasses

Snap keeps trying to make AR glasses a thing. This week the company released the fifth and latest iteration of its Spectacles AR glasses line. The new hardware offers a wider field of view and a display that appears similar to “a 100-inch display 10 feet away,” while SnapOS and the associated smartphone app have both received significant upgrades over their previous versions. Snap is also reportedly teaming with OpenAI to bring “cloud-hosted multimodal AI models” to the smart glasses.

The new specs also weigh a hefty 226 grams, which is over 100 grams more than last year’s edition, and look like something Edna Mode would wear. They’re currently only available to developers who shell out $99/month for program access, and there is no word yet on when a consumer version will be released.

YouTube’s new AI tools do most of the content creation process for you

In an effort to lower the barrier to entry for new content creators and better compete with short form video platforms like TikTok, YouTube introduced a bevy of new AI-enhanced production tools this week. Google announced Wednesday at its Made on YouTube event in New York City that DeepMind’s Veo video generation model will be incorporated into YouTube Studio. The model can generate six-second clips in 1080p resolution and a wide variety of cinematic styles, from only a text prompt.

The company is billing these new features as a “brainstorm” assistant that can suggest topics for the video, as well as generate a title, thumbnail, and the first few lines of the script. Users will also be able to use Veo in conjunction with Dream Screen, which generates AI background images. You’ll be able to create a static background with Dream Screen then animate it using Veo.

Coincidentally, did you know that having a chatbot write a 100-word email for you consumes the equivalent of three bottles of water and 14 LED light bulbs running for an hour? Maybe try using that noggin of yours to brainstorm some original ideas instead of boiling lakes to hear a large language model’s recursive suggestions.

Runway’s Gen-3 Alpha now offers video-to-video generation

Runway Gen-3 Alpha just leveled up with Video-to-Video

Now you can transform any video's style using just text prompts at amazing quality.

10 wild examples of what's possible:pic.twitter.com/onh12zCzpI

— Min Choi (@minchoi) September 15, 2024

Before it announced its partnership with Lionsgate, Runway started the week by rolling out a new feature for its Gen-3 Alpha video generation model: the ability to change the cinematic style of any video through text prompts. AI enthusiasts are having a field day with the new tool.

You can see the technology in action in the social media post above. Runway also debuted an API this week that will enable third-party developers to incorporate the video model into their own apps, systems, and devices.