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Research: System Improvements for Enhanced Realism

This research document series analyzes the current SyntheticData system and proposes comprehensive improvements across multiple dimensions to achieve greater realism, statistical validity, and domain authenticity.

Document Index

DocumentFocus AreaPriority
01-realism-names-metadata.mdNames, descriptions, metadata realismHigh
02-statistical-distributions.mdNumerical and statistical distributionsHigh
03-temporal-patterns.mdTemporal correctness and distributionsHigh
04-interconnectivity.mdEntity relationships and referential integrityCritical
05-pattern-drift.mdProcess and pattern evolution over timeMedium
06-anomaly-patterns.mdAnomaly detection and injection patternsHigh
07-fraud-patterns.mdFraud typologies and detection scenariosHigh
08-domain-specific.mdIndustry-specific enhancementsMedium

Executive Summary

Current State Assessment

The SyntheticData system is a mature, well-architected synthetic data generation platform with strong foundations in:

  • Deterministic generation via ChaCha8 RNG with configurable seeds
  • Domain modeling with 50+ entity types across accounting, banking, and audit domains
  • Statistical foundations including Benford’s Law, log-normal distributions, and temporal seasonality
  • Referential integrity through document chains, three-way matching, and intercompany reconciliation
  • Standards compliance with COSO 2013, ISA, SOX, IFRS, and US GAAP frameworks

Key Improvement Themes

After comprehensive analysis, we identify eight major improvement themes:

1. Realism in Names & Metadata

Current Gap: Generic placeholder names, limited cultural diversity, simplistic descriptions Impact: Immediate visual detection of synthetic nature Effort: Medium | Value: High

2. Statistical Distribution Enhancements

Current Gap: Single-mode distributions, limited correlation modeling, no regime changes Impact: ML models trained on synthetic data may not generalize Effort: High | Value: Critical

3. Temporal Pattern Sophistication

Current Gap: Static multipliers, no business day calculations, limited regional calendars Impact: Unrealistic transaction timing patterns Effort: Medium | Value: High

4. Interconnectivity & Relationship Modeling

Current Gap: Shallow relationship graphs, limited network effects, no behavioral clustering Impact: Graph-based analytics yield unrealistic structures Effort: High | Value: Critical

5. Pattern & Process Drift

Current Gap: Limited drift types, no organizational change modeling, static processes Impact: Temporal ML models overfit to stable patterns Effort: Medium | Value: High

6. Anomaly Pattern Enrichment

Current Gap: Limited anomaly correlation, no multi-stage anomalies, binary labeling Impact: Anomaly detection models lack nuanced training data Effort: Medium | Value: High

7. Fraud Pattern Sophistication

Current Gap: Isolated fraud events, limited collusion modeling, no adaptive patterns Impact: Fraud detection systems miss complex schemes Effort: High | Value: Critical

8. Domain-Specific Enhancements

Current Gap: Generic industry modeling, limited regulatory specificity Impact: Industry-specific use cases require extensive customization Effort: Medium | Value: Medium


Implementation Roadmap

Phase 1: Foundation (Q1)

  • Culturally-aware name generation with regional distributions
  • Enhanced amount distributions with mixture models
  • Business day calculation utilities
  • Relationship graph depth improvements

Phase 2: Statistical Sophistication (Q2)

  • Multi-modal distribution support
  • Cross-field correlation modeling
  • Regime change simulation
  • Network effect modeling

Phase 3: Temporal Evolution (Q3)

  • Organizational change events
  • Process evolution modeling
  • Adaptive fraud patterns
  • Multi-stage anomaly injection

Phase 4: Domain Specialization (Q4)

  • Industry-specific regulatory frameworks
  • Enhanced audit trail generation
  • Advanced graph analytics support
  • Privacy-preserving fingerprint improvements

Metrics for Success

Realism Metrics

  • Human Detection Rate: % of samples correctly identified as synthetic by domain experts
  • Statistical Divergence: KL divergence between synthetic and real-world distributions
  • Temporal Correlation: Autocorrelation alignment with empirical baselines

ML Utility Metrics

  • Transfer Learning Gap: Performance delta when models trained on synthetic data are applied to real data
  • Feature Distribution Overlap: Overlap coefficient for key feature distributions
  • Anomaly Detection AUC: Baseline AUC on synthetic vs. improvement after enhancements

Technical Metrics

  • Generation Throughput: Records/second with enhanced features
  • Memory Efficiency: Peak memory usage for equivalent dataset sizes
  • Configuration Complexity: Lines of YAML required for common scenarios

Next Steps

  1. Review individual research documents for detailed analysis
  2. Prioritize improvements based on use case requirements
  3. Create implementation tickets for Phase 1 items
  4. Establish baseline metrics for tracking progress

Research conducted: January 2026 System version analyzed: 0.2.3