Synthetic fraud involves using fake identities, often blending real and false data, to open accounts and commit financial crimes. SentiLink defines two types: first-party, where individuals manipulate their own identity, and third-party, where identities are entirely fabricated. Common tactics include credit washing, piggybacking, and the use of fake documents. These cases often go undetected or are mistaken for credit risk or identity theft. To improve detection and reduce regulatory confusion, the paper calls for standardized definitions across institutions, regulators, and the broader financial ecosystem.

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