Page 28 - Cyber Defense eMagazine March 2024

Collaboration and Information Sharing

Fraudsters frequently set their sights on multiple organizations at the same time and their activities can
extend across various industries and sectors. To counter this threat effectively, organizations can engage
in collaboration and information-sharing among themselves, exchanging insights regarding known
fraudsters, attack patterns and emerging threats.

By uniting risk insights through a consortium, organizations and technology, businesses can establish a
stronger defense against fraudulent activities. Integrating insights from diverse sources and organizations
facilitates the development of a cohesive fraud detection system. This approach empowers businesses
to scrutinize risk signals from numerous touchpoints to uncover fraudulent activities that might otherwise
elude detection when analyzed in isolation.

The prompt exchange of risk intelligence plays a pivotal role in swiftly detecting and responding to fraud.
Leveraging technology to enable real-time sharing empowers organizations to take immediate actions
against potential threats, minimizing the impact of fraudulent activities.

Advanced machine learning algorithms and artificial intelligence-powered models continually evolve by
learning and adapting to new fraud tactics in real time. The challenge frequently centers on guaranteeing
the availability of all signals throughout the user journey within the same system as the fraud detection
models, while also ensuring access to consortium intelligence. Only through this integrated approach can
these features collaboratively function, with appropriate weightage assigned to each, without adversely
affecting genuine customers.

The heightened attack rates we observe at present are unlikely to diminish, although investments in
public education regarding the risks of scams, increased regulatory oversight, and ongoing technical
innovation hold the promise of stabilizing these attack levels, potentially leading to a plateau.

The challenge facing organizations, industries and the U.S. financial ecosystem lies in the ability to
seamlessly integrate digital intelligence. This involves identifying interconnected signals within the
intricate web of a complex fraud attack as it unfolds, comprehending the behavioral anomalies it unveils
and tracing the subsequent financial transactions.

The encouraging news is that there are already instances of success, including machine learning-
optimized scam detection models achieving high detection rates, organizations collaborating to share
real-time intelligence to prevent repeated attacks by organized fraud rings and the apprehension of mule
herders leading to the closure of mule accounts. However, it is imperative to expedite these initiatives
and actively engage in the battle against cybercriminals.

Cyber Defense eMagazine – March 2024 Edition 28
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