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. Actually, this has taken a toll on loan brokers, accountants and even small businesses and the problem is related for the deteriorating relationships with bank and also, lenders which resulted to legal actions as well as fines.
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.
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. Read more about whether Is It Illegal To Make Fake Pay Stubs?These websites are simple to use and need basic information to create forged stubs in just few 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. Click to know whetherAre Pay Stubs Illegal?
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.
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 numbers are not lining up, then trust your intuition that it's a fake pay stub. Learn more from https://en.wikipedia.org/wiki/Paycheck.