How To Spot Fake Bank Statements? Fake bank statements can be spotted by contacting the bank to check their validity, meticulously scrutinizing genuine files, and requesting original records. As per IAG Forensics and Valuation, many persons try to commit fraud by falsifying bank statements while seeking for a loan, while others generate false bank statements to hide corruption or theft.
If there is any uncertainty about the legitimacy of a bank statement supplied by a borrower, Investing at People suggests confirming the document’s correctness with the issuing bank. Identifiable indications on bank statements are commonly overlooked by counterfeiters. In this post, we’ll go through how to identify fraudulent bank statements in detail, stepwise.
Methods | Identifying Fake Bank Statements:
Unfortunately, the issue of falsified bank records persists, and it has gotten even worse as a result of the epidemic that has forced millions of people out of work. In reality, the matter of phony banks has now become a greater headache for banks, financial organizations, building owners, and other businesses. In September 2020, the proportion of people who used a fake bank statement jumped from 15% to 29%.
What makes matters even worst is that one out of every four applications goes overlooked. The absence of effective verification methods can be blamed for the rise in the number of detected fraudulent entries. Furthermore, manual verification methods are incapable of detecting very complex falsified bank statements. The methods for identifying fraudulent bank statements are explained below.
Method #1 | Fake Bank Statements | Look For Bank Statement Inconsistencies:
- The arrival of the bank statement is the very first possible red sign. Are the font size and type the same as it is on some other bank files?
- Do the statement’s decimals and other features match up because they should if it was created with specialized software?
- Is the bank’s logo upon that statement low-resolution or distinct from the bank’s homepage logo?
- When making false bank statements, it’s possible that someone will be careless with some or all of these facts.
- Then take a look at any financial irregularities. Is it possible that the math is correct?
- Is there a match between the outstanding amount on one bank statement and the initial amount on the next?
- Is there a surplus of money as well as a surplus of overdraft fees?
- Are there any questionable withdrawals?
Any of these might indicate that more investigation is required.
Method #2 | Fake Bank Statements | Make Sure The Numbers Check-Out:
- As per the American Apartment Owners Association published the article “Tenant Fraud is Rising: What Else can Landlords Do?” whether you have the individual’s bank statements from the preceding 30 to 90 days, match the pay balance and company on their automatic payments with the facts on their bank slips. Try comparing their take-home earnings with their paycheck payments if they deposited their paycheck personally.
- Because most people are paying rent by cheque, the number on their bank statement must match the amount they specified in their rental contract.
- “You might discover that the more applications have work gaps, missing payments, or poor credit in the coming year,” the group warns.
- “Finding individuals who are genuine with you is the most crucial thing.” Having correct statistics and knowledge will make you feel more at ease while renting throughout this difficult period.”
- I’d suggest keeping one point in mind while you go over the figures. Those who fabricate bank statements frequently utilize rounded figures.
- A rounded number is improbable if we’re really talking about a wage or rental rates. Multiple rounded figures on the bank statement might be a warning sign.
Method #3 | Fake Bank Statements | Talk To A Bank Representative:
- If you’re unsure if you’ve got a false bank statement or not, contacting a bank employee is one method to find out. Contact the bank and request a representative to validate the data in the bank statement provided by the client, to use a contact you received yourself rather than the one listed on the application.
- If the person is hesitant to provide such details, you can send the document to them by email and get verification from the bank that the bank statement was provided. Unfortunately, the bank may be unable to assist you. While some banks use security elements in PDF files to prevent document modification, these procedures are primarily focused on protecting investment accounts.
- Even when using bank statements, they really aren’t impenetrable to a committed fraudster since “inevitably, all PDF files are modifiable,” according to Peter Davis, CPA, in his paper “Fraudulent Modification of Bank Statements in Digital Format.”
- “Alteration to bank statements is very hard to spot without a duplicate of the original bank statement to verify,” he warns.
Method #4 | Fake Bank Statements | DIRO’s Online Document Verification:
- While manual validation methods may be used for a variety of purposes, they do have significant restrictions. You can simply discern between false and genuine files using technology.
- DIRO’s bank document verification program immediately validates papers and gives solid confirmation of authenticity backed up by verified credentials.
- By cross-referencing file data from an original online resource, DIRO’s online file validation software can check over 7000 files from all around the globe.
- The technology has the potential to reduce manual verification hurdles while also improving the entire document verification process and reducing document-related frauds.
Video Guide | How To Spot Fake Bank Statements:
You can also read: How To Add Money To Robinhood Without Bank Account
It was all about figuring out how to spot phony bank statements. You can spot fraudulent bank statements that use the techniques listed above. Please share this post with others so that they’re being protected against fraudulent bank statements.
Is it possible to forge bank statements?
Fake bank statements can be used by potential renters, bank account managers, as well as other unscrupulous actors to accomplish a variety of unlawful crimes. While scammers get more sophisticated, they still rely on technology to create near-perfect bank statements.
What is the definition of an original bank statement?
An original bank statement is a file prepared by a bank for one of its clients only for the purpose of serving as official income verification. The letter is printed on original bank letterhead and includes basic client information such as an address, name, and mobile number.