For the past few years, typical corporate finance department has started seeing new issues among consumers and it is the practice of making fake pay stubs. This has actually taken a toll on loan brokers, accountants as well as small business owners and the problem is linked for deteriorating relationships with bank and even lenders which lead to legal actions and fines.
When seeking credit it is the pay stubs that serve as the most basic document. These documents are crucial when applying for a subprime auto loan or car loan. With the pay stub, it shows that the applicant is currently employed and can be trusted. According to studies, statistics and surveys, there are around 80 percent of fraud incomes that are reported in lending applications are misinterpretation in original form. This being said, customers without financial income or source or with a low income could qualify for a loan via fake pay stubs.
There are a number of reasons why an applicant could run into troubles like for instance, they have a job but cash or tips is where they get payments from, they weren’t able to secure their job for long or simply they just don’t have a job. While it isn’t a new concept to make fake pay stubs, consumers nowadays use online sources to create faux stubs through services of specific websites that are creating bogus references and verifications. These websites are simple to use and need basic information to create forged stubs in just few minutes.
There are countless of video sites that you can find online today that teach interested people on how they could make their own counterfeited stubs and pass loan authorities. There are audacious customers who even dare to make stubs of their own, which is deemed to be bank fraud and could damage the middlemen or car dealership’s relationship with their lenders and other banks.
Income fraud is basically the most difficult and easiest to perform to be identified by lender but before you take a step forward, you have to know that creating fake pay stub is off limits and illegal. Believe it or not, this can result to felony and/or misdemeanor and at the same time, make guilty offenders to pay some fines and/or be incarcerated; if you’re a business and knowingly accept phony pay stubs, it can put your reputation at risks.
Being aware of the math behind pay stubs is basically the best and most effective way to avoid accepting fake pay stubs. If the numbers don’t line up, then most likely you’re holding a fake pay stub.