Synthetic fraud involves creating fake identities using real and fictitious data to defraud financial institutions. SentiLink defines two forms: first party, where consumers alter their own details like SSNs, and third party, where identities are entirely fabricated. Common tactics include piggybacking on tradelines, credit washing, and using false documentation. Identity mismatches, often due to typos or data issues, can result in false positives. The paper urges industry-wide alignment on definitions to support better detection, reduce friction, and distinguish synthetic fraud from identity theft and credit risk.

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