Synthetic data is artificially generated and does not contain personal or sensitive information tied to real individuals or entities. This makes it an effective tool for mitigating privacy concerns, especially in sensitive sectors like finance, where handling customer data often involves strict compliance with data protection regulations (e.g., GDPR, CCPA).

A is incorrect: Synthetic data mimics, not perfectly replicates, statistics.
B is incorrect: Biases in real data can be replicated in synthetic data.
D is incorrect: High-quality synthetic data generation can be complex and costly.