Advancing Security in Digital Transactions Using Quantum Cryptography

Abstract

The increasing reliance on electronic payment systems has caused problems in terms of data protection and fraud control. Traditional cryptographic algorithms like RSA and ECC become increasingly vulnerable with advancements in quantum computing technology, and hence the development of quantum-resistant security protocols is an absolute need. Based on fundamental quantum concepts like quantum connection and the no-cloning theorem, quantum cryptography (QC), along with especially quantum key distribution (QKD), provides an encryption method that is potentially infallible. In order to improve secrecy, integrity, and authentication processes, the current study takes into account the integration of QKD into online payment systems. The use of artificial intelligence (AI) in fraud detection is also discussed in the study, with particular reference to real-time the tracking of transactions and anomaly detection. The susceptibility of QKD-based security protocols to both conventional and quantum-facilitated cyberattacks is determined by comparing conventional cryptographic systems with their quantum-secured counterparts. The study determines that quantum-augmented encryption significantly reduces threats in terms of key distribution and interception of information, hence guaranteeing a safe and forward-thinking digital transactional platform.