For the past years, corporate finance departments have began seeing new challenges among consumers in the form of making 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.
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. Pay stub serves as proof that the person is trustworthy and employed. 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. With this in mind, customers who don’t have financial source or income or perhaps, with a low income can still qualify for a loan through 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 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.
It is both easy and hard to create income fraud and you may be lucky or not to be identified by the lender but just before you take the step in making one, you should know that this is off limits and illegal. This may lead in felony and/or misdemeanor and can also cost guilty offenders to pay hefty fines and be incarcerated; not to mention it can put your business at risks if you have knowingly accepted phony pay stubs.
Well, the best way you can avoid these fake pay stubs is to be more conscious of the math behind pay stubs. You know that you are holding fake pay stub if the numbers don’t line up.