A financial service where lenders provide funds to individuals or organizations with the agreement that the amount will be repaid with interest over a specified time. This includes a variety of loan products such as personal, business, and mortgage loans, typically offered by banks, credit unions, and other financial institutions.
Main/
Loan Services
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Code
PS0067
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Name
Loan Services
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Version
1.0
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Category
Lending & Credit
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Created
2025-03-14
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Modified
2025-04-02
Related Techniques
- Criminals create or exploit formal loan agreements (including fictitious “loan-back” arrangements) and repay them with illicit funds under the guise of standard repayment schedules.
- Incremental loan installments, aligned with regular payroll cycles, obscure the true source of funds by presenting them as conventional debt servicing.
- Criminals obtain loans or lines of credit and repay them in structured amounts via multiple external depositors.
- This fragments the origin of illicit funds among third parties, concealing the true source and layering proceeds through an apparently legitimate repayment process.
- Criminals employ 'loan-back' or 'back-to-back' arrangements to disguise their own illicit funds as legitimate loan proceeds or repayments.
- They may falsify or omit documentation and collateral requirements to mask the true origin of funds under a veneer of normal lending processes.
- Perpetrators can exploit government-subsidized loan programs by submitting falsified data (e.g., overstated turnover), secure the funds, and then default while effectively integrating illicit proceeds.
- Fraudsters misrepresent financial standing or submit counterfeit records to qualify for loans or relief funds.
- They quickly channel disbursed amounts into personal or third-party accounts, commingling the fraudulent loan proceeds with legitimate funds.