In the digital age, the simplicity and convenience of generating official documents have, unfortunately, made it easier for dishonest individuals to create fake documents. Pay stubs, a necessary piece of information that a landlord needs to confirm a tenant will be able to afford rent, are one of these documents.
We’ll share the subtle signs and the not-so-obvious red flags to look for so you can confidently separate genuine documents from fakes. With a combination of keen observation and some know-how, spotting a phony pay stub in the digital era can be simpler than you think.
Request Original Documents
One primary step in authenticating pay stubs is to request original digital documents rather than accepting photocopies or scanned versions. Original documents directly from the applicant’s employer or payroll services often contain unique features, such as watermarks, official letterhead, or specific security features.
These features can be lost or manipulated in copied versions, so they play a crucial role in verifying the legitimacy of a pay stub. Most genuine documents produced by legitimate payroll software or departments include specific details to prevent fraud.
Verify Employment Details
Verifying employment details involves confirming the authenticity of the employer’s information, including the company name, address, and contact details. Legitimate pay stubs should accurately reflect the employer’s registered business information. You can independently confirm this information through public records or speaking with the company.
It’s also crucial to ensure that the employee’s position, salary information, and employment duration match the details the tenant provides during the rental application process. Discrepancies in this information can be a significant red flag, indicating an applicant may have altered or completely fabricated the document.
Check for Consistency
Checking for consistency in the details provided on the pay stub is crucial for identifying discrepancies that may hint at falsification. This means closely examining the numbers presented, such as the dates of payment, the hours worked, and deductions for taxes, insurance, and other benefits.
Unusual patterns, such as overly consistent earnings without variation that would typically reflect overtime, bonuses, or seasonal employment adjustments, can be telltale signs of a fabricated document. Additionally, the mathematical accuracy of the pay stub is nonnegotiable; all calculations for gross pay, deductions, and net pay should be correct and logically consistent.
Scrutinize Formatting
Genuine pay stubs from reputable employers will demonstrate a professional level of formatting that includes aligned columns, consistent use of fonts, and logical structuring of information. A haphazard arrangement of data, varying font styles or sizes, or the presence of typographical errors can indicate that a legitimate business entity didn’t generate the document.
You should also pay attention to the quality of the digital document. Authentic pay stubs will come in high-resolution formats that support detailed scrutiny. Conversely, forgeries may appear in lower quality, indicating they were altered or fabricated.
Check the Payment Frequency
Evaluating the payment frequency on the pay stub is an important aspect of authenticating its legitimacy. Genuine pay stubs should accurately reflect the employer’s standard pay cycle, whether it’s weekly, bi-weekly, semi-monthly, or monthly. An inconsistency in payment frequency, such as irregular intervals that do not match the stated employment terms or commonly accepted payment schedules, may signal a fraudulent document.
It’s also advisable to compare the pay dates and frequencies on the document to local and federal holidays, as legitimate payroll processes usually account for these in their scheduling. For instance, if a pay date falls on a national holiday when banks are closed, this could be a red flag.
Look for Common Phony Pay Stub Signs
Certain indicators can help you clearly pinpoint a phone pay stub, such as the presence of rounded numbers in places where precise calculations are expected. Genuine pay stubs typically showcase detailed figures that reflect exact calculations rather than rounded-up totals.
Additionally, pay stubs that lack comprehensive details regarding taxes, insurance deductions, and other standard withholdings should raise suspicions. Adequate pay stubs will itemize these deductions clearly and accurately, corresponding with local, state, and federal tax rates.
Another red flag is the absence of employer identification numbers (EINs) or inaccuracies in these identifiers. Legitimate businesses will have valid EINs that facilitate tax processing and identification.
Request Additional Documentation
Requesting additional documentation can significantly help substantiate the authenticity of pay stubs. This could include asking for corresponding bank statements that reflect the pay deposits, tax return documents, or employment verification letters directly from the employer.
These documents should align with the information presented on the pay stubs, such as the amounts deposited and the dates of those deposits. By cross-referencing the pay stub details with information on these additional documents, you can more easily identify discrepancies.
However, it’s important to approach this step with sensitivity and professionalism. Therefore, frame the request for further documentation as a standard part of your process.
Compare Multiple Pay Stubs
Comparing multiple pay stubs from different pay periods can provide invaluable insights when assessing their authenticity. It offers an opportunity to observe consistency in pay, deductions, and employer contributions over time. Genuine pay stubs should exhibit variations that reflect real-world situations, such as raises, bonus payments, changes in deductions, or varying hours worked for hourly employees.
A series of pay stubs showing no variation or too much consistency in earnings and deductions can be a red flag. This analysis also allows for the verification of sequential pay stub numbers and consistency in formatting and details across all documents.
Use Online Verification Services
In an era where digital tools and resources abound, leveraging online verification is a powerful strategy in the fight against document fraud. By inputting data from the pay stubs into these platforms, landlords can quickly ascertain the legitimacy of the documents in question.
These services work by cross-referencing submitted information with public and private databases. This ensures that the employer exists, the employer is in good standing, and that the financial details accurately reflect the employee’s reported earnings.
However, users must select reputable verification services that prioritize data security and privacy, ensuring that sensitive information remains protected throughout the process.
Spotting a phony pay stub in the digital era takes a keen, trained eye. If you’re not versed in the process, checking each one for authenticity can be time-consuming. This is where Excalibur Homes can help.
As a property management company, we have a force of dedicated, experienced, and meticulous real estate managers ready to handle the nitty-gritty of landlordship for you. Don’t waste your time poring over documents. Let the experts at Excalibur Homes help you reclaim your time.
