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. With the pay stub, it shows that the applicant is currently employed and can be trusted. 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.
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. 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 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. 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. If the numbers don’t line up, then most likely you’re holding a fake pay stub.