Synthetic fraud is the use of fake identities, often combining real and fabricated data, to open accounts and commit financial fraud. SentiLink defines two types: first-party, where individuals alter their own identity data, and third-party, where entirely fictitious profiles are created. Tactics include credit washing, piggybacking on tradelines, and submitting false documents. These cases are difficult to detect and frequently misclassified as identity theft or credit risk. The paper calls for standardized definitions across industry and regulators to improve detection, reduce false positives, and align institutional responses.

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