Synthetic fraud uses fictitious identities—some based on real data—to open accounts and commit fraud. SentiLink defines first-party fraud as manipulation of one’s own identity, while third-party fraud involves creating entirely fake profiles. Common tactics include piggybacking, credit washing, and using false documents. These frauds are difficult to detect and often misclassified as credit risk or identity theft. SentiLink recommends clear industry definitions to improve detection, support regulatory clarity, reduce false positives, and guide how institutions respond to synthetic activity across the credit lifecycle.

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