Lloyds Banking Group has successfully concluded what is believed to be the first-known experiment utilizing quantum computing to identify money mules.
Criminals frequently use complex money mule networks to enable broader scams, hiding illicit behavior within vast webs of seemingly legitimate transactions. Insights from this new nine-month project could one day help banks detect these sophisticated fraud patterns much earlier, utilizing cutting-edge technology to better protect customers.
Testing algorithms on quantum hardware
Working alongside specialists from IBM, Lloyds tested multiple quantum algorithms to determine whether known money mule behavior patterns could be successfully isolated within a larger transactional graph.
Using anonymized real-world data, the team ran the experiment on one of IBM’s 156-qubit quantum computers (specifically, the Quantum Heron device, utilizing 152 of its available qubits). To validate the approach, a real money mule was deliberately embedded into the data set. The quantum solution successfully identified the hidden mule, demonstrating how algorithms running on actual quantum hardware could eventually tackle real-world financial crime.
Ron van Kemenade, chief operating officer at Lloyds Banking Group, emphasized the necessity of exploring next-generation technologies to keep pace with criminals.
“Financial crime is becoming more complex and more network-driven, which means we need to keep pushing the boundaries of technology to protect customers,” van Kemenade stated. “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.”
Building an internal quantum workforce
At the core of the project is Lloyds’ growing internal quantum capability. The bank has formed a new working group of “Quantum Ambassadors” drawn from across the business, bringing together qualifications in physics, mathematics, and computer science. This internal team worked closely with the bank’s economic crime prevention experts and IBM to execute the project.
Scott Crowder, vice president of IBM Quantum Adoption and Business Development, noted the importance of the collaboration.
“Our collaboration with Lloyds Banking Group demonstrates how forward-looking financial organizations can begin conducting meaningful quantum research,” Crowder said. “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.”
The quantum advantage in financial services
Unlike traditional, classical computers that process information as bits (either a 0 or a 1), quantum computers utilize “qubits”. Following the rules of quantum physics, qubits allow systems to represent many states simultaneously.
This allows a quantum computer to assess all potential answers to a problem at the same time to home in on the best one. Conversely, a classical computer must solve each potential answer sequentially—a process that, for large-scale systemic problems, could require more computing power than exists on the planet.
Because of this capability, quantum computing is being heavily explored for problems involving complex, dynamic systems with many interacting variables, such as analyzing the exponentially growing patterns within large transaction networks.
