If you’re self-employed or an independent contractor, your tax returns are your proof of income. You can count on the fact that they’re going to contact your place of employment and verify that you work there. If you’re required to show proof of income, the lender is going to verify that the information is correct. Generally, however, fraud is a felony charge with a potential sentence of six months to five years.” How Lenders Spot Fake Pay Stubs “Criminal penalties vary widely depending on several factors including the type of fraud and the amount of money involved, but can range from suspended sentences, and probation and fines to prison sentences of up to fifteen years. As for the penalties, FreeAdvice Legal states:

Fraud committed against a governmental institution or business – Insurance fraud, tax fraud, counterfeiting, healthcare fraud, etc.ĭepending on the severity of the fraud committed, it can be considered both a criminal and a civil offense.

Employee fraud – An employee accepts bribes, sells trade secrets, or embezzles funds, etc.

Consumer fraud – Credit card fraud, telemarketing scams, check fraud, etc.

According to FreeAdvice Legal, there are three main types of fraud: Fraud is the “wrongful or criminal deception intended to result in financial or personal gain,” according to. When you create a fake pay stub and submit it to a dealer or lender, you’re committing fraud. There are many different types of lenders that can assist you in the car buying process, no matter if it’s under the table income, tip income, or if you’re a regular W-2 employee and have low income. You may not need to fake your income to get an auto loan. This is considered fraud, and if you decide to use an online paystub generator, know that lenders can verify if it’s false and you could be subject to legal action if you lie on an auto loan application.

Faking proof of income to get an auto loan is illegal.

How to spot a fake bank statement