How to spot fake bank statements?

During the loan process, many frauds provide fake bank statements to get loans from the banks. Banks use manual verification methods to spot fake documents. This article teaches you how to spot fake bank statements, advanced detection methods, ways to prevent fraud, etc.

Fake Bank statements:

We know banking is one complicated process that includes money, assets, etc. There are high chances of scamming during banking. Many people try to submit fake documents to get loans from banks. Lenders should be able to spot fake bank statements given by frauds or scammers.

In the past, lenders used to verify the documents manually, but as times changed, they used advanced methods. Manual verification takes lots of time, and many people review the documents. So, nowadays, lenders use AI tools to detect fake documents.

How to detect fake bank statements?

Even though there are many ways fraud can happen, managers must be able to detect it manually. Mostly fake bank statements are detect by reviewing all the documents. They can detect them by some minor changes in the documents. Here are some common alterations they are,

• Check the font type. The original font may be different from the tampered documents.
• Font size may be different from the original documents.
• Most bank statements don’t end with zeroes. So you can identify it by the no.of zeroes.
• Original files will not have typographical errors. If it has any typographical error, then it is a fake one.
• The entire banking process is done correctly. So, if there is a total number of mistakes, it is identified as fake statements.

Why do lenders ask for bank statements?

When you visit a bank for loans, they ask for bank statements. They ask them to verify the person’s identity and history. It is also asked to spot fake bank statements. It gives the below details about the person.

• Income
• History of expenses
• Monthly payments
• Direct deposits
• Debits
• No. of bounced checks or overdrafts.

They verify all the data and decide whether to give the loan.

The amount of the loan also depends on these bank statements. They ask them to verify,

• Whether the person can be trust or not.
• Where does the money come from?
• How many funds are there in the bank account?
• Whether they can repay the loan or not
• How much an amount to give them as a loan?

Way to prevent fraud:

You can use these ways to prevent fraud, like giving fake bank statements, illegal documents, etc.

• Lenders need to request the applicant for their identification documents beforehand.
• They must check all the dates, grammar, amounts, signatures, etc., on the documents.
• Verify the purpose of loans and the source of the statement.
• Bank employees should be well-trained.
• Employees of the bank should consult the risk management department.

Tools to detect fake bank statements:

Even though manual verification is the traditional method, it is impossible to detect minute differences. So to prevent that, many advanced AI tools are using to detect them. Here is a list of some tools use for detection.

• Snappy’s fraud detection: It verifies all the documents and provides the data within 24 hours.
• Homeppl’s fraud finder is a famous fraud-detecting tool used in many banks. It finds financial data like transactions, account information, document verifications, etc.
• Moneythumb
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Frequently asked questions (FAQs):