For the past several years, a typical corporate finance department begin to see issues among consumers and it’s the practice of making and using fake pay stubs. In reality, this takes a toll on small businesses, accountants and brokers and the problem has lead to the gradual deterioration of relationships with bank and lenders which results to both fines and legal actions.
Pay stubs are basic documents needed when you seek credit. Such documents are critical when applying for subprime auto loan or car loan. Pay stub serves as proof that the applicant could be trusted with the loan 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.
A few other reasons why the applicant might run into some troubles may be that, they haven’t been in their job long enough, they may have a job that pays them in tips or cash or chances are, they don’t have a job at all. 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. 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 audacious customers who dare making stubs of their own which is considered to be bank fraud and may just damage the relationship of the middleman or car dealership with their lenders and several 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.
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. If the numbers don’t line up, then most likely you’re holding a fake pay stub.