SAGE: An LLM-driven Self Reflective Agentic Framework for Fraud Detection

Fraud detection systems must scale with rising transaction volume while remaining explainable and reviewable. We study a layered pipeline on the PaySim dataset that combines a gradient-boosted classifier, graph-derived structural features, an autoencoder-based anomaly signal, TreeSHAP explanations, and a bounded LLM investigation agent applied to cases the classifier scores uncertainly. Before any model comparison, we identify and remove a simulator-specific balance shortcut that would otherwise inflate baseline performance. After this correction, neither the graph features nor the anomaly signal improves Average Precision on the full test set. Both, however, rank fraud better within the subset of cases receiving intermediate baseline scores. In a controlled experiment with injected multi-account fraud rings, engineered structural features recover all injected test transactions, while the tabular baseline misses roughly a quarter of them. The investigation agent underperforms direct thresholding of the classifier it relies on, reaching 65.0% accuracy against 71.7% on a balanced 60-case sample, despite having access to model explanations, graph context, and retrieved reference cases. Of the eight decisions the agent changed, six replaced correct classifier outputs with errors, and it produced a coherent written rationale in each case. An exploratory disagreement-based escalation rule flagged two of these agent errors for human review without flagging any correct decision. We conclude that each component of a layered fraud system contributes only under specific conditions, and that a plausible rationale from an investigation agent is not evidence of a better decision.

Large Language Model (LLM)-powered agents demonstrate strong capabilities in autonomous task execution, tool use, and multi-step reasoning. However, their increasing autonomy also introduces a new attack surface: adversarial interactions can manipulate agent behavior through direct prompt injection, indirect content attacks, and multi-turn escalation strategies. Existing defense strategies focus on prompt-level filtering and rule-based guardrails, which are often insufficient when risk emerges gradually across interaction sequences. In this work, we propose a complementary defense mechanism: a low-latency fraud detection layer for detecting adversarial interaction patterns in LLM-powered agents. Instead of determining whether a single prompt is malicious, our approach models risk over interaction trajectories using structured runtime features derived from prompt characteristics, session dynamics, tool usage, execution context, and fraud-inspired signals. The detection layer can be implemented using lightweight models leading to low-latency real-time deployments. To evaluate the framework, we construct a synthetic corpus of 12,000 multi-turn agent interactions generated from parameterized templates that simulate realistic agentic workflows. Using 42 structured features and an XGBoost classifier, our detector achieves over 9 times faster than LLM-based detectors. Through the experiment and ablation studies, our work suggests that interaction-level behavioral detection should become a core component of deployment-time defense for LLM-powered agents.

SMS fraud is increasingly cross-channel: a message directs the user to a webpage, and the final risk depends on how the SMS claim aligns with the page content and requested user action. However, existing evaluations either focus on message-only smishing classification or expose URL and domain cues that allow models to rely on reputation shortcuts. To address this gap, we introduce \textbf{FraudSMSWalker}, a controlled benchmark for URL-masked SMS-to-webpage fraud judgment. FraudSMSWalker contains 699 bilingual chains, including 332 fraudulent and 367 benign cases, across ten service scenarios. The model-visible input consists of the SMS context and sanitized webpage evidence, while raw URLs, hosts, domains, IPs, redirects, and reputation metadata are withheld. The benchmark further includes hard benign cases whose pages contain login, payment, verification, or account-management elements that are plausible under the service context but also appear in scam flows. We evaluate nine web agents under masked browser-agent protocols and conduct URL-visibility ablations. The results show that current agents can detect suspicious cues, but struggle to preserve benign recall and often produce positive predictions that are weakly supported by the observed evidence. These findings position FraudSMSWalker as a benchmark for measuring whether web agents can make fraud judgments that remain both accurate and evidence-grounded when direct reputation shortcuts are suppressed. The associated code and dataset are accessible at the \href{https://anonymous.4open.science/w/FraudMessageWalker-Bench}{anonymous link}.