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. 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 the basic documentation needed when seeking credit. 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.
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. These sites are very easy to use and require only basic information in creating forged stubs in a matter of 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 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.
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. 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. You know that you are holding fake pay stub if the numbers don’t line up.