Which pattern is a red flag in transaction monitoring for deposits?

• A. Single high-value deposit
• B. Many Low dollar deposits
• C. Recurring salary deposits
• D. Promptly paid credit card bills

Answer: (B)

Pattern recognition in deposits: many small deposits can signal structuring or smurfing, where funds are split into multiple under-the-radar amounts to evade reporting thresholds. This is a classic red flag because it hides the true size and source of the money and suggests an attempt to avoid higher scrutiny, such as currency transaction reports. In contrast, a single large deposit may be legitimate or suspicious depending on context but doesn’t by itself indicate the deliberate evasion pattern; recurring salary deposits are normal for regular income, and promptly paid credit card bills show ordinary financial behavior rather than suspicious layering. So, the many small deposits stand out as the strongest indicator of suspicious deposit activity.