How to Spot Fake Bank Statements: 5 Signs of Fraud

As a property manager, you’re the first line of defense when it comes to protecting your client’s investments. The last thing you want is to hand over the keys to a tenant who’s more likely to damage the property than pay the rent on time. With fraudsters becoming increasingly sophisticated, knowing how to spot fake bank statements helps you to know which documents are genuine.

Bank statement verification is a fundamental part of your tenant screening process. It’s not just another box to check off – it’s a necessary step in ensuring that you’re making informed decisions and protecting your client’s interests. When you’re managing someone else’s property and finances, there’s no room for shortcuts or assumptions.

 In the following sections, we’ll cover the various methods to identify fake bank statements. From understanding the red flags to looking out for and leveraging the latest technologies, we’ll provide you with practical insights into this important aspect of tenant screening.

Fake bank statements in rental applications

Fake bank statements are fraudulent financial documents that have been manipulated, altered, or fabricated to misrepresent an individual’s banking activity and financial standing. Fraudsters use these documents to try and secure housing or loans for which they may not otherwise qualify.

Technology and altered bank statements

In today’s world, pretty much anyone can whip up a fake bank statement with a bit of tech know-how. Here’s how they’re doing it:

• Simple editing tools: Think of the editing software out there that’s super user-friendly. Fraudsters can use it to easily tweak numbers or names on a bank statement. It’s that easy.
• Templates: The internet’s flooded with bank statement templates from just about any bank you can think of. Someone could grab one of these, fill in their own “details,” and bam – you’ve got a fake statement that looks real enough at first glance.
• PDFs aren’t foolproof: Remember when PDFs were considered pretty tamper-proof? Well, not so much anymore. There are tons of tools out there now, some even free, that let fraudsters edit PDFs without leaving much of a trace.
• How-to videos: There are endless tutorials online showing step-by-step instructions on how to alter documents to make them look legitimate.

Signs of fake bank statements

To spot fake bank statements, you need to know what to look for. While some fraudulent documents may be easy to identify, others can be remarkably convincing. You can train your eye to detect the subtle signs that a bank statement may not be genuine.

Here are some of the indicators you can use to detect fake bank statements:

• Inconsistent formatting: Genuine bank statements follow a standardized format with consistent headers, footers, and page numbers. If the statement you’re reviewing has irregular margins, inconsistent fonts, or an overall unprofessional appearance, it may be a sign of tampering.
• Poor image quality: A fraudulent statement often contains blurry, pixelated, or low-resolution images, particularly in the areas displaying transaction amounts or account balances. This may indicate someone has digitally altered the document.
• Questionable transactions: Pay close attention to the transaction details on the statement. If you notice a series of round-dollar transactions or a sudden influx of funds that don’t align with the tenant’s reported income, it could be a red flag for forged documents.
• Incomplete or inconsistent information: Legitimate bank statements include a range of detailed information, such as the account holder’s name and address, the bank’s routing number, and official logos. If any of these elements are missing or inconsistent with the tenant’s application, it warrants further investigation.
• Unusual fonts or logos: Be familiar with the standard fonts and logos used by major financial institutions. If the fonts or logos on the statement appear different from what the bank typically uses, or if they look like they were copied and pasted from another source, it’s a strong indication of a fake.

Strategies to verify bank statements

Now that we’ve covered the indicators of fraudulent bank statements let’s explore some practical strategies for verifying the authenticity of these documents.

• Manual checking: This involves someone, like an underwriter, going through the document and its details manually. They’ll use their experience to spot anything that doesn’t look right versus real bank statements.
• Using technology: This is where AI or machine learning comes in. These technologies can review documents and compare them to genuine ones to find discrepancies that might not be obvious at first glance.
• Contacting the issuing bank: In cases where you have doubts about the authenticity of a bank statement, you can reach out to the issuing bank directly. Banks have dedicated teams to handle such inquiries and can verify whether the statement is genuine or not.
• Verification services: Specialized services like Rentzap can help you verify the authenticity of bank statements. Rentzap has access to large databases of financial information and uses advanced algorithms and underwriters to detect anomalies.
• Comparing with other financial documents: Cross-reference the information on the bank statement with other financial documents provided by the applicant. This could be pay stubs or tax returns, which can help you identify discrepancies that may indicate a fake statement.

Application underwriting with Rentzap

Rentzap handles the challenge of spotting fake bank statements and other fraudulent documents through a fully managed application underwriting process designed for property managers.

• Experienced underwriting team: Rentzap is an extension of a property manager’s team. Experienced underwriters handle application verification, including detecting fake bank statements.

• Automated and manual verification: Rentzap leverages third-party sourced data to verify supporting documents and application information. This blend of automated data cross-referencing with manual expert review verifies a thorough validation process, making it harder for fake statements to slip through the cracks.

• Ease of use for property managers: Property managers receive a unique application link for their listings, simplifying the process of directing applicants. Once an application is submitted, Rentzap’s team takes over the heavy lifting from application through approval, keeping property managers updated throughout every step.

Wrapping up: identity fake bank statements

As a property manager, thoroughly screening tenants is a critical part of your job, and identifying bank statement fraud is becoming increasingly difficult. Staying informed about the latest trends in fraud and the red flags to watch out for can help you better protect your clients’ investments.

However, even the most experienced property managers can benefit from additional support in this area. Partnering with a specialized application underwriting service like Rentzap can provide you with the expertise for compliant and safe tenant screening.

By combining your own knowledge and experience with the right partners and solutions, your tenant screening process can be efficient, so you choose the best applicant every time. This reduces the risk of fraud and ultimately builds a stronger, more successful portfolio for your clients.

FAQ about how to spot fake bank statements

Can I call a bank to verify a bank statement?

Contacting a bank directly to validate a bank statement is an option. It’s best to use a verified phone number rather than one listed on the document to avoid scams. While privacy policies may restrict detailed disclosures, you can still ask about the statement’s legitimacy. Your success in getting verification can vary depending on the bank’s specific protocols and privacy considerations.

Can a bank statement be edited?

Yes, you can edit bank statements. Technology advancements and the availability of editing tools have made it possible to modify bank statements. While legitimate alterations might be made for reasons like presentations or educational purposes, unauthorized changes, especially to deceive or commit fraud, are illegal and unethical. It’s critical for property managers relying on these documents for verification purposes to be vigilant and utilize verification methods to ensure authenticity.

What should I do if I suspect a bank statement is fake?

If you suspect a fake bank statement, verify the document’s authenticity by contacting the bank directly using a verified number. Do not rely on contact details provided on the bank statement itself. Consider the inconsistencies and discrepancies you’ve identified and ask the bank to confirm the statement’s validity.