TED-FinRisk: a hybrid topic-enhanced framework for typologizing illegal fundraising risk from multi-source case texts
Illegal fundraising is increasingly conducted through dispersed digital channels, cross-regional operations, and rapidly changing promotional narratives, which makes static rule lists and purely expert-driven typologies difficult to maintain. This paper presents TED-FinRisk, a hybrid framework for constructing an interpretable risk taxonomy from multi-source case texts. The framework combines term frequency–inverse document frequency (TF-IDF) feature construction, topic exploration assisted by t-distributed stochastic neighbor embedding (t-SNE), latent Dirichlet allocation (LDA)-based topic extraction, and Analytic Hierarchy Process (AHP)-based expert priority calibration under the Financial Action Task Force (FATF) threat–vulnerability–consequence perspective. After the taxonomy is finalized, FinBERT is used for a reclassification consistency check aligned with the final expert labels, examining whether the taxonomy corresponds to recognizable text-semantic patterns within the study corpus. The study is based on a corpus of more than 1,000 illegal fundraising cases and nearly 6,000 associated risk-related records covering scenarios such as elder care, virtual currencies, supply-chain finance, agricultural ventures, film investment, social e-commerce, and overseas investment. The resulting taxonomy contains six primary categories and a set of secondary labels linked to operational indicators for downstream monitoring. These results suggest that combining data-driven topic discovery with expert calibration can produce a risk taxonomy with regulatory semantics and monitoring relevance. The paper contributes a methodology-oriented case study, a reusable taxonomy design process, and a structured basis for future benchmarking and early-warning applications.
Authors
- Qiang Duan (ORCID: https://orcid.org/0000-0001-7832-1937)
- Wenchuan Kuang
- Zhe Lin
- Chun Yang
- Rongzhen Li
- Yusiyuan Chen
- Jiawen Liang
Institutions
- Pennsylvania State University (US)
- Fudan University (CN)
Publication Details
- Journal
- Journal Of Big Data
- Published
- 2026-10-03
- DOI
- https://doi.org/10.1186/s40537-026-01574-7
- Primary Topic
- FinTech, Crowdfunding, Digital Finance
- Type
- article
- Field-Weighted Citation Impact
- 0.00