Identifying Fake Bank Statements – How to Fight Fraudulent Applications

It is crucial to know how to identify fake bank statements. Often, these fraudulent applications contain inconsistencies. Inconsistencies may be significant or minor, but they can be a big red flag. For example, if the figures do not add up, or if there are suspicious withdrawals or credits, you should be wary. You should always double-check all documents and take them to a bank representative. Alternatively, you can use the DIRO’s Online Document Verification tool.

Ensure that All the Figures Match Up:

A typical red flag for a fake bank statement is a suspiciously round or odd number. A bank statement should always match the account information it claims to represent. Fraudsters rarely check their bank statements, so you’ll need to verify everything yourself if you’re not using an automated verification service. Also, look for unusual withdrawals or overdraft fees that don’t match the balance.

Take to a Bank Rep:

How do you tell if a bank statement is fake? A bank statement can be created using fake information, including round numbers that are extremely unlikely to be genuine. A quick way to check if the statement is objective is to call the bank and confirm. Alternatively, you can try social network analysis to spot suspicious connections and suspicious numbers on a bank statement. Once you’ve identified a possible fraudster, you can fight fraudulent applications by taking steps to protect your financial institution.

The main thing to look for is inconsistency. Whether it’s major or minor, inconsistencies are red flags of fraud. If a bank statement is bogus, it is most likely that the numbers aren’t in line. It’s also worth checking if there are any suspicious withdrawals or transactions. Unless a bank has automated verification, these transactions will be suspicious.

DIRO’s Online Document Verification:

The use of fake bank statements in rental applications has not disappeared. A recent Snappt study revealed that the rate of fraudulently altered applications has increased by nearly a third, from 15% before the pandemic to 29% in September 2020. The increase in the percentage of undetected fraudulent applications has been attributed to the difficulty in identifying fraudulently uploaded documents via online applications.

The proliferation of fake financial documents has made this problem more pronounced, and the lack of adequate verification solutions has only made the problem worse. Manual verification methods can’t keep up with the standards set by bad actors. Fortunately, automation can help fight fraudulent applications by identifying fake bank statements and ensuring their authenticity. Below are some common ways to identify fake bank statements. Using these methods is crucial to protecting your financial institution from the scourge of fraudulent applicants.