Synthetic fraud is the use of fake identities, often blending real and fictitious data, to open accounts and commit fraud. SentiLink categorizes it as first-party (real individuals altering their identity) and third-party (completely fabricated identities). Tactics include credit washing, piggybacking, and use of false documents. These cases are hard to detect and often confused with credit risk or identity theft. The paper argues for a clear, standardized industry definition to support better regulation, detection, and alignment across financial institutions, regulators, and law enforcement.

Join for free to read