Abstract: The mechanism for the disposal in advance of funds involved in telecommunication and network fraud refers to the process in which the public security organs employ measures to urgently stop payments and quickly freeze the accounts and funds involved in the case, and then return the funds involved in the case that can be confirmed to the victims. Disposal in advance of funds is a necessary means to protect the property rights of victims, and is also a reasonable balance between procedural justice and litigation efficiency. The technical principle of online interception and return of funds and the traces of telecommunication and network fraud crimes make the mechanism highly feasible at the practical level. After a practical investigation of the mechanism from the dimensions of operational process and operational effectiveness, it is found that the mechanism faces several phased and overall institutional difficulties, such as insufficient coverage of normative documents, improper distribution of functions and powers between the upper and lower levels of public security organs, and lack of effective external supervision. The mechanism should be systematically improved from three aspects: institutional norms, operation mechanisms and resource allocation: in terms of norms, a number of supporting provisions should be revised in response to existing problems, in terms of operation, the effectiveness of disposal in advance should be improved with scientific and technological empowerment, and in terms of resource allocation, the idea of “paying equal attention to attack and prevention” should be adhered to.