Uncovering Synthetic Identity Fraud

In late 2022, Detective Constable Sarath Thayalan, of Financial Crimes Unit Major Fraud section, began an investigation that led him to unravel a large-scale synthetic-identity fraud scheme that operated for seven years.

“The investigation started with a report from a financial institution, concerning an allegation that multiple synthetic identities had been used to defraud that institution,” he said. “While investigating that incident, we uncovered further incidents and many more synthetic identities, and that a group of people had been perpetrating this scheme for a number of years. They targeted the entire banking industry. With the losses well into the millions, we tried to identify the people that were involved.”

Synthetic identify fraud is a form of financial fraud in which fictional personal information is used to open accounts with banks, financial institutions or other businesses.

In general, accounts obtained under synthetic identities are known to facilitate other serious criminal offences, including the laundering of proceeds derived from human trafficking, drug trafficking and armed robbery among other serious crimes.

Evidence gathered during the multi-jurisdictional investigation – Project Déjà vu – pointed to a family operating the scheme out of their residence.

The cumulative losses resulting from this fraud are estimated to be about $3.9 million.

Through the investigation, 16 people were arrested and over 100 charges laid.

“I worked on this case for approximately two years and I cannot overstate the fact that this was a team effort,” said Thaylan. “The entire Financial Crimes Unit assisted with this investigation as did Divisional and Specialty Units, outside police services and some government agencies. Without all of their assistance, this investigation would not have been successful as it was.”

Inspector Graham Gibson said he’s incredibly proud of Thaylan and the team.

“Sometimes when I take a look at the files, it blows me away how much was put into it,” he noted. “The type of people that work in this office pay an incredible attention to detail and are very work-oriented."