Lloyds Banking Group has partnered with IBM to complete what could be the first ever experiment using quantum computing to help identify and catch a money mule network.

The experiment explored how quantum algorithm could be used to detect patterns of known money mules across a complex transactional graph in an effort to boost fraud-fighting capabilities.

With IBM, the banking group used a 156-qubit quantum computer to run multiple algorithms to find the embedded monkey mule operation in the graph experiment.

Money mule networks are vast and complex, relying on a tangled web of transactions to hide their illegal activities such as fraud and scams. This complexity makes it difficult for traditional computers to identify these networks.

Qubits, however, which quantum computers rely on, are subject to the laws of quantum physics, and can therefore represent multiple states at once, assessing all potential solutions to an issue at the same time. This improves efficiency and the speed at which a solution can be found, especially in complex problems with wide ranging data inputs.

In the experiment, anonymised data was used on the quantum computer which was used to find a real money mule that was embedded in the dataset. The experiment was successful, validating the methodology and the use of quantum computers in finding crime networks across transaction data.

Recommended reading

• UK Invests £2BN In Scaling Quantum Computing
• Glasgow Quantum Spin-out Quantcore Raises £2.5m
• Firms Unprepared for Quantum Computing’s Rapid Rise
• Financial Services Under Quantum Threat, Warns Europol

“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 Lloyds Banking Group chief operating officer Ron van Kemenade.

“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 said: “Our collaboration with Lloyds Banking Group demonstrates how forward-looking financial organisations can begin conducting meaningful quantum research.

“Over the past nine months, Lloyds worked alongside IBM’s quantum computing experts to test how quantum algorithms could help identify patterns within complex transaction networks and combat evolving forms of economic crime.

“IBM is excited to continue collaborating with financial institutions like Lloyds and further explore how quantum computing could support the future of financial services.”