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Fake Pay Stubs Create Challenge for Auto Dealers


Automobile dealers know before they can approve financing for a customer they must verify . . . 

Automobile dealers know before they can approve financing for a customer they must verify his or her income and employment status. However, an increasing number of dealers have reached out to TIADA to report customers trying to use fraudulent pay stubs and employment information. 
Many of these would be con artists easily obtained these fake documents from websites online. They then tried to pass them off as genuine in order to misrepresent their actual income or employment status. 

We reached out to a few experts in the finance industry to see what steps dealers could take to avoid falling victim to these scams. Below are some of their simple suggestions.
  • Avoid accepting copies of pay stubs, ask customer to bring original and copies can be made at the dealership.
  • Utilize tools such as Google and Google Maps to Verify the employer is an actual business.
  • Look up the company address on the pay stub to verify it is a business and not an apartment complex.
  • Call the employer to verify the hire date and match the year to date- Do NOT verify with managers. Go straight to HR or Payroll unless it is a family owned business.
  • Calculate the taxes on the pay stub.
  • Examine multiple checks to ensure the year-to-date totals add up and are accurate.
  • Look out for repeated pay stub formats--the same formats are often circulated.
  • Request bank statements if pay stubs indicate direct deposit.
In addition to these steps, dealers can also look for patterns. Some dealers have caught multiple fraudsters using the same pay stubs purchased from the same forger online. Saving copies of the fraudulent material helps staff spot patterns and commonly used fake businesses. 

These suggestions could help a dealer spot a fake but are not guaranteed to work every time. As always, TIADA encourages dealers to consult with their own legal counsel when setting their own internal policies.

Last, make sure you are training your employees to look for suspicions documents.
 

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