Q:

How do I identify fake bank statements?

A:

Fake bank statements can be identified by confirming the authenticity of the statements with the bank, inspecting actual documents closely and asking for original documents. Some people try to commit fraud using falsified bank statements when applying for a loan, while others create fake bank statements to cover up embezzlement or theft, according to IAG Forensics and Valuation.

If there is any doubt regarding the authenticity of a bank statement provided by a borrower, it is important to confirm the document's accuracy with the originating bank, advises Investment at People. Bank statements often contain identifiable markings that a counterfeiter might overlook. Bank statements that have been printed on a computer are especially suspect, as the person committing the fraud may have altered or deleted entries. Computer-generated statements should be examined closely for inconsistencies in type face, print quality or color. Original bank statements likely are folded as a result of the mailing from the bank. Investment at People suggests that a business that may have received fake bank statements ask the originating bank to provide copies of statements for extra security.

The Adviser explains that brokers, accountants and lenders sometimes commit fraud by altering bank documents. Fraud can involve groups of financial market participants in collusion. But more than 90 percent of all mortgage fraud cases are the result of carelessness on behalf of the borrower or the broker, said John Denovan of Gadens, quoted by The Adviser.


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