Abstract: A system and methods for detecting and reporting risk associated with financial instruments, based on financial instrument data submitted by clients such as banks and financial institutions and on additional data obtained from various third party information sources. A financial risk and (associated) fraud detection system processes the financial instrument data along with data obtained from various third party information sources in order to determine a risk assessment. The risk assessment comprises a risk score and level of risk associated with the financial instrument. Further, a type of fraud associated with the financial instrument is also reported for financial instruments that are deemed to be fraudulent. Comprehensive reports are generated and reviewed by clients in order to assist in approval or rejection of individual loans or in management of multiple loans in existing portfolios.