Fake vs. Real Pay Stub

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With the advancement of digital technology, there are a few negative consequences. People now have ways to make fake pay stubs that look real easily. To be more precise, they can do this for only a few dollars and within a few minutes. And they’ll submit what seems to be a realistic proof of income. This poses a huge problem, especially to landlords and lenders. 

These people depend on the pay stubs of an applicant to establish their credibility as far as finances are concerned. It is crucial to be able to differentiate between a fake vs. real pay stub now more than ever. In this article, you’ll learn how to do that and more.

Table Of Contents

The Growing Problem of Pay Stub Fraud

The use of online forms and the availability of pay stub generators are popular now. Combined with current economic factors, the creation of fake documents is easier than ever before. A study of more than 15,000 rental applications was conducted. The study revealed that property managers experience forgery of documents in about 14% of the cases. This vice of fake pay stubs has a great impact on property managers and landlords. It could result in huge impacts on their finances and even evictions.

Components of a Real Pay Stub

A real pay stub provides the basic details of an individual’s earnings and the deductions made. Payroll managers and other specialists produce these papers with great attention to detail. Generally, there are core aspects that must show on any genuine pay stub.

The legal name of the company, physical address and EIN should appear. This appears in the company information portion of a genuine pay stub. These should be consistent and can be substantiated with statutory records. It is also important that the employer’s contact information remains consistent. What's on the official letterhead should be the same as corporate correspondence.

Real pay stubs also contain the employee's full legal name and address. They also partially show the social security number or employee identification number. The format will be uniform across the company and used in all its documents. 

Another important element of genuine pay stubs is information regarding the pay period. That’s the beginning and the end of the pay period and the date of payment. Such schedules are coherent and coincide with the company’s pay schedule. This can be weekly, bi-weekly or monthly.

Gross pay should also be reflected on the pay stub. Deductions, such as Federal and state tax and social security, are included as well. There are also other contributions like medical insurance and retirement contributions among others.

Signs of a Fake vs. Real Pay Stub

Identifying a fake vs. real pay stub involves looking for things that are easy to miss:

  1. Figures

The first and the most objective sign can be found in the figures. The normal payroll process does not have exact decimal figures in most cases. When certain figures on the paycheck stub are added, it doesn't give rounded numbers. Be cautious with numbers ending with .00 or rounded off to the nearest hundred dollars.

  1. Formatting 

Another sign is professional formats, which include headings. Original pay stubs have a standard structure. They also have a proper orientation of all alphabets and numerals.

  1. Symbols

All the decimal points in each of the figures in the tables must align. This is one thing that real payroll services do for pay stubs. Most fake pay stubs neglect this. Parentheses and brackets should be clear. None of the text should include any sign of tampering or different fonts.

  1. Information 

Going through the given employer information, you can identify certain glaring signs of fraud. The fake pay stubs use everyday generic names. Some others use slightly modified actual business names. There is also the possibility that the provided contact information is either invalid. Other times, it does not correlate with other sources. Also, the employer identification number could be left blank or contain an incorrect figure. This is one aspect that fraudsters often do not pay much attention to when forging documents.

How To Verify a Paycheck Stub

fake vs real stub

As a result, landlords and property managers have come up with ways on how to verify a paycheck stub

One of the direct methods of finding employment is through the employer. It is important not to use the contact information displayed on the pay stub. In this case, you should look for contact details from the official firm’s websites or reputable business listings.

The bank statement cross-checking method is also vital in the verification process. A legal pay stub should tally with the bank statements. These statements will disclose frequent deposits from the applicant. The deposit amounts should equal the net pay shown on the stub. The depositing entity should correspond to the employer’s name. Therefore, any variance in the pay stub amounts and the actual deposits should raise some concern.

Another way is to cross-check totals compiled by the year-to-date. These cumulative totals should sum up to the total for all the previous pay periods. For instance, let's say an employee earns $2,000 bi-weekly. Therefore, his or her YTD earnings by the end of March should be around $12,000. Concerning this issue, any differences that are beyond the norm require consideration.

Best Practices for Landlords and Property Managers

Firstly, they need proper and standardized methods of verification. This will help them identify any fake vs. real pay stub. Managers should write down the procedure of document verification. Then, they should make sure that all the members of the staff receive special training in this field. This makes the screening process uniform and, hence, more effective across all the applications. It also provides some evidence should there be an issue in the future.

It is common practice for property managers to seek multiple kinds of proof in regard to income. Apart from pay stubs, they can request documents like bank statements. Some also ask for W-2 forms or tax returns from the applicant. Every single additional document allows for comparing that information with something else. That is where inconsistencies that might point to fraud could be identified.

Pay stubs can be accompanied by employment verification letters. However, they should also be verified. The letters should be typed and on official organizational letterhead. They should carry the direct contact details of the personnel in the human resource departments. Regarding the contact information, it must be mentioned that it's the same as the pay stubs. Any information received must be verified for authenticity before use.

Final Thoughts

The concern of how to differentiate the authenticity of a fake vs. real pay stub is a major one. And the concern is ever-changing and growing with technology. You have to plan your actions while always reviewing any documents. The major way to protect against this issue is to have the right information. This includes understanding the ingredients of the real pay stub and knowing the typical signs of a scam. With the right information, property managers can safeguard their investments. They can also ensure the fairness of the screening process is intact.

Protect your investments and ensure the authenticity of your pay stubs with ease. Our paystub creation platform offers a reliable and efficient platform for generating legitimate pay stubs. We help you avoid the pitfalls of fake documents and streamline your verification process. Visit us today!
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Fake vs. Real Pay Stub
James Wilson

After graduating from McCombs School of Business in Texas, James joined ThePayStubs as a CPA to make sure the numbers we provide our clients are correct. Read More

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