A payslip is a document provided by an employer each month after salary payment. For illegal purposes, this type of document is often falsified and manipulated. Fraudsters commonly create fake payslips to meet the requirements for renting property, applying for a loan, requesting installments, or other financial applications. Such fraudulent actions are highly risky, and could lead to serious problems due to false claims about the actual financial capability.
Uncover the red flags of fake payslips and how you can detect them instantly in this article.
How payslips act as proof of income
Payslip is one of the primary documents that serves as proof of income. This document offers complete information of salary, tax deductions, and net earning. Payslip is an official statement issued by the employer, making it a reliable source to confirm an individual’s income and employment. But in some professions, other forms of documentation can also act as proof of income. Business owners might rely on tax returns, independent freelancers may use payment invoices, to present their income.
The vital role of income verification in detecting fake payslips
With the increasing number of fake payslip cases today, conducting in-depth income verification is crucial. Verifying income through payslips and other relevant documents plays a key role in risk mitigation. It is a standard requirement for assessing a person’s ability to manage financial commitments. But, it is also essential for detecting potential fraud or falsification, which can have serious consequences if overlooked.
8 signs checklist to spot fake payslips
Fake payslips are becoming more common, and it is important to know what to look for to spot them. Take note: here’s a list of red flags to help you identify fraudulent payslips more easily.
Letterhead
Official documents commonly have letterhead, but its absence doesn’t necessarily mean that it’s fake. However, if you found a payslip with poorly designed letterhead and messy layout, it may suggest forgery attempts.
Logo & Branding
Fake payslips can also be identified by the company logo on the document. Check whether it appears in low resolution or blurry, as if it was copied from somewhere.
Employer details
Employer information is an essential section that is generally found on payslip. Check the completeness of details such as the company name, address, and phone number.
Company’s existence
Make sure to verify the company’s existence and check for discrepancies in the details. At the very least, you can search it online.
Salary amount
Assess if the salary amount aligns with the industry standard for the position. An unrealistic salary should be questioned to avoid potential fraud.
Tax & Deductions
A payslip will always show a detailed salary breakdown, subtracting taxes and deductions to inform net pay. Thus, inaccurate or missing tax calculations can also be a sign of fake payslip.
Overall layout formatting
Review the overall layout and design of the document. Messy or unstructured document formats show a lack of professionalism, and payslips officially issued by a company should have a well-organized structure.
Mismatch with other supporting documents
Last but not least, don’t forget to check the consistency between payslip and other supporting documents. Such as verifying the payslip date and amount with transaction records in the bank statement.
How Fintelite can help
Manually verifying payslips is time-consuming and prone to errors. Moreover, there are still several supporting documents that need to be checked as well, making the process even more complex. Fintelite offers an efficient solution for verifying collateral documents like payslips. With built-in fraud detection, Fintelite allows you to uncover signs of digital forgery, such as inconsistencies or potential tampering. Enhance your customer risk assessment with Fintelite. From identity verification to asset validation, we make the process faster and more reliable. Book a demo to see it in action today!
