📂 Overview of Six Major Financial Fraud Scenarios
This page outlines six key categories of abnormal financial behavior, each corresponding to different types of fraud risks identified during simulations.
🔎 Scenario 1: Fake Registration Fraud
- Entities are often newly established (less than 1 year).
- Legal representatives show weak association with the registration region.
- Age of legal representative is unusually high or low.
- The registered business applies for high-risk services.
🔎 Scenario 2: Scalper Marketing Fraud
- Claims to offer “fast, easy, and cheap” services with minimal entry requirements.
- Progressive escalation in remittance amounts over a short period.
- Multiple transfers made within a short time, with increasing amounts.
🔎 Scenario 3: Merchant Fraud Rings
- Dormant accounts suddenly become active with small test transactions.
- Funds are dispersed in and centralized out (or vice versa).
- Cross-bank and cross-platform transactions dominate.
- Frequent public-to-private transfers.
- Unusual counterparties (low correlation, cross-region).
- Abnormal transaction timing and IP addresses (e.g., shared IPs, proxy usage).
- Suspicious transaction amounts: rapid increase, zero balances, integer-based transfers.
🔎 Scenario 4: Illegal Gambling Transactions
- Batch-registered accounts with similar personal info and addresses (e.g., students or migrant workers).
- A single user operates dozens or hundreds of accounts, many purchased or borrowed.
- Creation of virtual accounts on third-party payment platforms to obfuscate fund flow.
- Use of shell companies in IT, ecommerce, or service sectors with short-lived, poorly constructed websites.
- Frequent account changes to evade detection.
🔎 Scenario 5: Credit Card Cash-Out Fraud
- Transactions occur outside regular business hours.
- Repeated use of the same POS machine for purchases.
- Intentional extension of repayment cycles:
Repay bill on the due date, immediately cash out again, delay next repayment—repeatedly.
🔎 Scenario 6: Merchant Violations
- Inflow funds primarily originate from POS settlement.
- Funds are quickly transferred out via online banking, leaving minimal end-of-day balances.
- Public-to-private transfers immediately after POS clearing.
- Transaction amounts deliberately kept under monitoring thresholds (e.g., below $9,000).
- Transaction behavior mismatched with business scale.
- Preference for non-face-to-face transactions to avoid inquiry.
- Counterparties unrelated to the declared business scope.
- Actual controller may differ from the registered legal person.
- Merchant type often tied to wholesale or trade sectors with low commission rates (<1%).