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. Actually, this has taken a toll on loan brokers, accountants and even small businesses and the problem is related for the deteriorating relationships with bank and also, lenders which resulted to legal actions as well as fines.
Pay stubs are basic documents needed when you seek credit. When applying either for a subprime auto loan or car loan, these documents are going to play an important role. Pay stub serves as proof that the person is trustworthy and employed. According to surveys and statistics, 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.
Some other reasons why applicants might get into troubles could be that they have not been able to secure their job for long, they have a job that is paying them in cash or tips or, they just simply don’t have a job at all. Yes it is true that fake pay stubs have been in existence for long but these days, consumers use online sources to make one through the services of specific sites that are creating bogus verifications and references. As a matter of fact, using these websites are such a no brainer and need only your basic information to create forged stubs.
There are many video sites that have surfaced teaching people with little interests on how to make counterfeited stubs and get a pass from loan authorities. There are some audacious customers who tried making their own stubs which is considered to be bank fraud and if this passed middlemen and car dealers, it can damage their rapport with lenders or banks.
Income fraud is both the hardest and easiest to perform to be identified by the lender but before doing so, you should learn that creating fake pay stub is illegal and something that should be off limits. 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.
The best possible way to steer clear of these fake pay stubs is being conscious of the math behind pay stubs as you can tell when the online pay stub provide calculates inconsistent deductions. You know that you are holding fake pay stub if the numbers don’t line up.