arXiv AI

FraudSociety: A Generative Agent-Based Society for the Financial-Fraud Economy

FraudSociety is a novel LLM‑agent‑based simulator that jointly models informational and financial dynamics in the financial‑fraud economy. It features a dynamic social environment, persistent financial ledgers, and a Need‑Intent‑Action architecture, allowing fraudsters to adapt their actions based on interaction histories and ledger states. Validation shows macro‑level outcomes match real‑world patterns, micro‑level loss concentration aligns with Canadian statistics, and personalized interventions can dramatically reduce repeat‑payment rates.

arXiv AI
Aug 20

FraudBench: Stress-Testing Policy-Grounded Banking Agents Against Adaptive Fraud

FraudBench is a new benchmark that tests policy‑grounded banking conversational agents against adaptive fraud scenarios. It uses a dual‑control framework and a 698‑document internal policy corpus, presenting 150 adversarial scenarios (107 public, 43 held‑out) that require agents to manage mutable account state and tool access while preventing identity, authorization, and trust manipulation. Preliminary results on four agents show attack‑security rates between 49% and 65%, highlighting weaknesses in money‑mule and first‑party fraud detection.

By Dheeraj Mohandas Pai, Lu Xian
arXiv AI
Sep 30

Agentic Commerce Bench: Measuring Fraud Detection for Agents That Spend Money

The paper introduces the Agentic Commerce Bench (ACB), a benchmark for measuring fraud in AI agents that autonomously spend money. It presents a taxonomy of agentic commerce fraud, a dataset of twenty fraud classes derived from real production data, and an open‑source detector stack called gordonguard for auditing and replaying hostile counterparties. The study shows that current reasoning layers and security scanners perform poorly on many classes, highlighting the need for better detection mechanisms.

By Ankit Srivastava, Debjyoti Paul
arXiv AI
6d ago

S$^2$-MAS: A Society-Scale Multi-Agent Simulation Framework with a 500-Million-Persona Resource

S$^2$-MAS is a multi‑agent simulation framework that uses 500 million synthetic household personas to model economic responses at society scale. It integrates trainable candidate‑scoring policies, reusable financial scenarios, and explicit state transitions, and has been trained on 2.93 million examples to achieve high accuracy on consumer financial‑choice tasks. Experiments demonstrate the framework’s ability to evaluate millions of households across different purchase‑funding conditions, revealing heterogeneous consumption and repayment patterns driven by policy decisions and accounting rules.

By Yang Li, Yike Wang, Di Wan, Chujun He, Zongsi Xu, Yitao Yu, Shuai Zhong, Minghao Pan, Quanfeng Lu, Xiyu Chen, Sheng Zhong, Deng Binjie, Yichen Guo, Zhenwei Guo, Hou Jun, Kunhan Guo, Weihao Lin, Tuo Zhou, Hai Liu, Chenwei Wu, Jianyuan Zhong, Xilin Dai, Ye Luo
arXiv AI
Sep 28

Financial Fragility in Societies of LLM Agents: Coordination Failures and Stabilizing Mechanisms

The paper "Financial Fragility in Societies of LLM Agents: Coordination Failures and Stabilizing Mechanisms" investigates how large language model agents can collectively cause financial failures when making individual protective decisions. Using the FRAIL framework, the authors simulate bank runs, debt rollovers, and reward crowdfunding, finding that 77% of bank-run and 83% of debt-rollover episodes fail even without malicious agents. They test three interaction mechanisms—compensated commitments, centralized agreements, and participant-led coalitions—each improving outcomes but none dominating across all scenarios, noting that early broad commitments are key to successful stabilization.

By Zhenhao Fu, Ruipeng Xu, Qibing Ren
arXiv Machine Learning
Sep 24

SR-Fraud: An Outcome-Supervised Reflective LLM Agent Framework for Non-Stationary Payment Fraud Detection

SR‑Fraud is a framework that uses a frozen, stateless LLM agent to score transactions in real time while an offline reflection agent proposes boundary hypotheses based on matured errors. The system then verifies these hypotheses deterministically before updating its knowledge state. On a production payment‑fraud benchmark, SR‑Fraud outperforms both static and periodically retrained CatBoost models and successfully detects an emerging fraud burst.

By Xuwei Tan, Yao Ma, Xueru Zhang
arXiv Machine Learning
Sep 14

FINESSE: An Agent-Based Simulator and Benchmark Dataset for Multimodal Financial Event Sequences

FINESSE is an agent‑based simulation framework that generates synthetic, structured datasets of multiple interdependent financial event streams, such as transactions, payments, account status changes, and policy interventions. Each stream has its own action space, schema, and variable types, and the streams are coupled through agents’ evolving latent states, allowing temporally rich interactions. The accompanying FINESSE‑Bench dataset supports four tasks—balance forecasting, transaction fraud detection, missed payment prediction, and next event prediction—and baseline results are provided using various time‑series and event‑sequence methods.

By Tyler Farnan, Benjamin Eng, Adam Abate, Xirui Hou, Rizal Fathony, Nam H. Nguyen, Senthil Kumar
arXiv AI
Jun 17

An AI Security Agent for Banking: Multi-Vector Fraud and AML Detection Across Retail and Corporate Accounts

arXiv:2606. 17555v1 Announce Type: cross Abstract: Banks simultaneously face signature-based fraud (card-not-present attacks, account takeover, ATM cloning) and behavioural financial crime (structuring, layering, mule networks, business email compromise) -- two threat families with fundamentally different detection requirements.

By Joseph Walusimbi, Joshua Benjamin Ssentongo
arXiv AI
Sep 25

PAWS: Policy-driven Agentic World Simulation

PAWS is a new dataset for policy-driven agentic world simulation that covers 36 verified U.S. financial and economic policy episodes. It includes 12,727 policy-linked news records and 65,291 stakeholder actions, each linked to supporting news and represented by a multi-layer event frame with interaction mode, financial-action family, semantic attributes, and taxonomic mappings. The dataset aligns actions with daily market-return context and has been validated by AI and human reviewers, demonstrating high agreement on interaction mode and revealing challenges in detecting rare stakeholder actions.

By Tiviatis Sim, Jia Hui Woon, Xinming Gao, Chen Gao, Fengbin Zhu, Zheng Huanhuan, Chua Tat Seng, Kenji Kawaguchi