Frequent deposits in round numbers can be an indicator of which type of fraud?

Frequent deposits in round numbers can be an indicator of check fraud, as this type of fraud often involves unauthorized or fraudulent checks that are deposited in varying amounts but commonly appear as round figures. In many cases, perpetrators may manipulate checks or create fictitious checks that result in these deposits, making them appear legitimate. The pattern of rounding can suggest attempts to hide the source or nature of the funds, as round numbers often do not correlate with typical transactional behavior, which tends to vary in amounts.

In contrast, while payroll fraud, investment fraud, and tax fraud can exhibit irregularities in financial transactions, they typically do not specifically manifest as frequent deposits of round numbers. Payroll fraud might involve manipulations of employee pay or ghost employees, investment fraud may revolve around the misrepresentation of investment returns or Ponzis, and tax fraud usually relates to the underreporting of income or inflation of expenses, none of which commonly present as the pattern of checking that round number deposits do.