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.
When seeking credit it is the pay stubs that serve as the most basic document. When applying either for a subprime auto loan or car loan, these documents are going to play an important role. With the pay stub, it shows that the applicant is currently employed and can be trusted. As what shown in multiple studies and statistics, there are more or less 80 percent of fraud incomes that are reported in lending applications which are misinterpreted in original form. So through fake pay stubs, customers can still be qualified to apply for a loan even if they have no financial income or has low income.
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 making fake pay stubs aren’t actually a new concept, consumers these days are using online sources in creating faux stubs through the services of specific websites that create 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 numerous video sites that have mushroomed today and teaching people with little interests to make their own 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 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.
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.