The Power of Information Sharing and Proactive Fraud Red Team Testing

Fraudsters are becoming more sophisticated, employing advanced techniques that constantly challenge financial defenses. To counter these evolving threats, financial institutions must adopt a dual approach: embracing both information sharing and proactive strategies, such as those implemented by Red Team 27, which focuses on intelligence-based fraud red teaming.

Insights from the Federal Reserve’s Initiative The Federal Reserve's Scams Information Sharing Industry Work Group highlights the critical need for a centralized information exchange that connects scam intelligence across payment systems. Such an initiative would allow financial institutions to share vital indicators of compromise (IOCs) and coordinate responses to emerging threats.

Why Fraud Teams Need a Dedicated Threat Intelligence Function Cybersecurity teams have long benefited from mature and robust threat intelligence programs, allowing them to predict, detect, and respond to threats effectively. Fraud teams should adopt a similar model. A dedicated fraud threat intelligence function empowers organizations to stay ahead of evolving fraud tactics, analyze patterns, and develop tailored defense strategies. By integrating fraud-specific intelligence, teams can proactively mitigate risks, just as cyber teams use threat data to secure networks.

At Red Team 27, we emphasize the importance of understanding the threat landscape. Our simulations of real-world fraud scenarios, based on strong threat intelligence, help financial institutions identify vulnerabilities and strengthen defenses. Learn more about our approach at Red Team 27.

Expanding the Information-Sharing Network In addition to the Federal Reserve’s initiative, several established platforms facilitate information sharing across the financial sector. These include:

• FS-ISAC Intelligence Exchange: A vital community for sharing timely fraud and cyber threat intelligence among financial institutions worldwide. Learn more at FS-ISAC Intel Ex.
• National Cyber Forensics and Training Alliance (NCFTA): This alliance unites industry experts, academics, and government agencies to share cyber threat information and develop strategies to prevent cybercrime.
• International Association of Financial Crimes Investigators (IAFCI) Mobilize: IAFCI provides a global network for financial crime investigators to share insights and collaborate on fighting financial fraud.

Why Proactive Testing and Information Sharing Are Essential Combining proactive red team testing with robust information-sharing practices enhances the industry's overall fraud resilience. By continuously updating defenses and learning from shared intelligence, financial institutions can better anticipate and mitigate fraudulent activity

Conclusion Fraud prevention requires collaboration. By adopting concepts from mature cybersecurity practices, implementing a dedicated fraud threat intelligence function, and leveraging platforms like FS-ISAC, NCFTA, and IAFCI alongside intelligence-driven fraud red teaming from Red Team 27, financial institutions can mount a more effective, unified defense.

Join the Conversation Is your organization leveraging all available resources to combat fraud? Connect with Red Team 27 to learn how our intelligence-based testing approach integrates with these critical information-sharing networks. Visit us at Red Team 27 to find out more. Book time with Jason Bartolacci , Co-founder of Red Team 27 https://calendly.com/jason-redteam27/30min

For more on the Federal Reserve’s recommendations, visit FedPayments Improvement.