White paper

Defining Synthetic Fraud



SentiLink Synthetic Fraud Definitions White Paper-1

Ask five people what is synthetic fraud and you will get five different answers. Not only does synthetic fraud cost banks and lenders billions of dollars a year in losses, but there’s not a widely agreed upon definition of it.

SentiLink has been working with industry groups, government agencies and regulators to create a common language around synthetic fraud. Defining synthetic fraud will enable financial institutions to accurately measure the size of the problem and build models to address synthetic identities. It also will enable government agencies and regulators create policies and guidance for the industry to insure proper controls are in place to mitigate it.

It is with this in mind that SentiLink applied a deep understanding of synthetic fraud towards this white paper, “Defining Synthetic Fraud.” It proposes a framework for defining synthetic fraud, includes a discussion of other types of fraud as well as the tactics often used by fraudsters. We hope this helps to create more clarity around what is synthetic fraud so industry players, government agencies and regulators can work together to tackle this growing problem.