🔍 How to Spot Fake Pay Stubs & Forged Documents

According to recent industry surveys, 93.3% of property owners and managers experienced rental application fraud in the past year. That’s not a typo—nearly every landlord has encountered fraudulent documents. The most common types:

The Real Cost of Document Fraud

When you accept an applicant based on fraudulent documents, you’re not just getting a bad tenant—you’re getting someone who has already demonstrated they’ll lie to get what they want. The typical outcome:

• Non-payment begins quickly—they couldn’t afford the rent in the first place
• Eviction costs $3,500-$10,000+ including legal fees and lost rent
• Property damage is common—fraudulent tenants have no investment in the property
• Recovery is nearly impossible—you can’t collect from someone who lied about their income
• Identity theft complications—if they used a stolen identity, they’re long gone

Fake pay stubs are the #1 document fraud type because they’re easy to create and most landlords don’t know how to verify them properly. Here’s what to look for:

Visual Red Flags

Many fake pay stubs have obvious visual problems if you know where to look:

Mathematical Red Flags

This is where most fake pay stubs fall apart. Always check the math:

Information Verification Red Flags

Beyond the document itself, verify the information matches reality:

• Employer doesn’t exist: Search the company name—is it a real business?
• Address is wrong: Does the employer address match public records?
• EIN is invalid: The Employer Identification Number should be verifiable
• Employee name variations: Name on stub doesn’t exactly match application or ID
• Job title doesn’t match: Application says “Manager” but stub says “Associate”
• Income inconsistent with role: Entry-level position showing executive salary

How to Verify Pay Stubs Independently

Don’t rely solely on document review. Verify directly:

1. Call the employer directly—find the number independently (not from the applicant)
2. Request W-2 forms—these are harder to fake and show annual totals
3. Cross-reference bank statements—do deposits match the net pay amounts?
4. Use employment verification services—automated systems like The Work Number
5. Ask for tax returns—compare stated income to IRS documents

Bank statement fraud has become more sophisticated with PDF editing tools. Applicants alter statements to show higher balances, fabricate deposits, or hide negative information. Here’s how to catch them:

Visual and Format Red Flags

Transaction Analysis Red Flags

Look at the actual transactions, not just the ending balance:

• No normal spending patterns: Real people buy groceries, gas, pay bills. Suspicious if only large deposits and withdrawals.
• Deposit sources don’t match employment: Claimed employer is “ABC Corp” but deposits show “XYZ LLC”
• Large cash deposits before statement date: Cash deposits to artificially inflate balance
• Transfer patterns: Money transferred in from another account just before statement closing
• No recurring payments: Real people have subscriptions, utilities, car payments
• Activity gaps: Normal accounts have daily or near-daily activity

Digital Document Analysis

PDF statements can reveal manipulation:

• Check PDF metadata: Right-click properties may show creation/modification dates and software used
• Look for layers: Edited PDFs may have visible layers or selection artifacts
• Zoom in on numbers: Edited numbers may show different resolution or anti-aliasing
• Check for copy/paste artifacts: Slightly different backgrounds or borders around edited areas
• Print the document: Some manipulations become more visible when printed

Employment verification letters are easy to fake—anyone can create letterhead in Word. Here’s how to distinguish real from fraudulent:

Red Flags in Employment Letters

How to Verify Employment Letters

1. Find the company independently: Search for the company—does it exist? Is the address real?
2. Call the main number: Find the company phone number yourself (not from the letter) and ask for HR
3. Verify the HR contact: Is the person who signed the letter actually employed there?
4. Check LinkedIn: Does the applicant’s LinkedIn match the employment claim?
5. Use The Work Number: Many large employers report to this automated verification service
6. Request W-2 or pay stubs: Cross-reference multiple documents

Tax documents are often considered more “official” than pay stubs, but they can be faked too. Self-employed applicants in particular may submit fraudulent Schedule C forms or 1099s.

W-2 Fraud Detection

Self-Employed Tax Document Red Flags

Self-employed applicants may submit Schedule C, 1099s, or profit/loss statements. Watch for:

• Round number income: Exactly $50,000 or $75,000 in self-employment income is suspicious
• No business expenses: Real businesses have expenses—pure profit is unrealistic
• Income doesn’t match lifestyle: Claiming $150,000 but driving a 15-year-old car with bad credit
• No business presence: Can’t find any evidence the business exists online
• 1099s from suspicious companies: The “clients” can’t be verified
• Bank deposits don’t support claimed income: Tax returns show $100K but bank deposits total $40K

Fake landlord references are extremely common. Friends, family members, or even the applicant themselves pose as previous landlords to give glowing reviews. Here’s how to catch them:

Red Flags During Reference Calls

Questions That Expose Fake References

Ask questions a fake landlord won’t be prepared for:

• “What was the exact monthly rent?”—Fakes often don’t know or give round numbers
• “What was the security deposit amount?”—Real landlords remember this
• “How many bedrooms in the unit?”—A real landlord knows their property
• “Did they have any pets?”—Test if they know details
• “Were there any maintenance issues during their tenancy?”—Real landlords have stories
• “Can you describe the property?”—A friend won’t know
• “Do you own other properties?”—Real landlords have context
• “Would you rent to them again?”—Hesitation is revealing

How to Verify Landlord References

1. Search property records: Verify who actually owns the property at the address claimed
2. Find contact info independently: Don’t use the number provided—find the owner’s contact yourself
3. Cross-reference with screening report: Does the address history match?
4. Check for property management company: Large complexes have verifiable management
5. Google the phone number: Is it associated with a landlord/property or a random person?
6. Reverse lookup the address: What do public records show about tenancy?

After 20+ years of fraud investigation, we’ve developed a systematic verification process. Here’s the professional approach:

Modern fraud detection uses technology to catch what manual review might miss:

PDF Analysis Techniques

• Check metadata: Right-click > Properties reveals creation date, modification date, and creating software
• Look for editing software signatures: Documents created in Adobe Acrobat vs. online generators have different signatures
• Examine at high zoom: 400-500% zoom reveals editing artifacts invisible at normal size
• Check for layers: Some PDF viewers show document layers where edits may be visible
• Compare file sizes: Edited documents are often larger due to added elements

Online Verification Tools

• The Work Number: Automated employment and income verification for large employers
• IRS Tax Transcripts: Form 4506-C allows direct verification with IRS
• Property records searches: County assessor websites show ownership history
• Business entity searches: Secretary of State websites verify business existence
• Phone number lookups: Carrier lookup tools identify Google Voice and burner numbers
• Professional screening services: Comprehensive reports cross-reference multiple data sources

Over two decades of fraud investigation, we’ve seen every scheme imaginable. Here are real scenarios (with details changed to protect privacy) that illustrate common fraud patterns:

Case Study #1: The Perfect Applicant

Case Study #2: The Inflated Income

Case Study #3: The Self-Employment Scam

Case Study #4: The Identity Swap

Case Study #5: The Manufactured Emergency

When you discover document fraud, handle it carefully to protect yourself legally and document everything:

Immediate Steps

1. Document everything: Save all submitted documents, notes, and communications
2. Deny the application: You can deny based on falsification of application materials
3. Provide proper notice: If required by local law, provide adverse action notice
4. Do NOT confront aggressively: Professional communication only
5. Keep application fee: Fraud voids any refund requirements in most cases

What to Say

Keep communication professional and brief:

When to Report to Authorities

In serious cases, you may want to report to law enforcement:

• Identity theft: If the applicant used someone else’s identity
• Large-scale fraud operation: If it appears to be organized fraud
• Threatening behavior: If the applicant becomes hostile when denied
• Financial crimes: If forged checks or financial instruments were involved

For typical fake pay stub situations, denial and documentation is usually sufficient. The applicant knows what they did and rarely causes further problems.

Protecting Other Landlords

While you can’t share screening reports, you can:

• Report to your local landlord association
• Document in case of future reference requests
• Share general fraud techniques with other landlords (without identifying specific people)

How common is rental application fraud?

Extremely common. Industry surveys show 93% of landlords and property managers encountered application fraud in the past year. Fake pay stubs are the most common type, followed by fake bank statements and fraudulent employment letters. The rise of online document generators has made fraud easier than ever.

Can I legally deny an application for document fraud?

Yes. Falsification of application materials is a legitimate, non-discriminatory reason to deny an application. You should document the fraud you discovered and keep records. You don’t need to prove the fraud in court—you simply need a good-faith belief based on your verification that the documents are not authentic.

Should I confront the applicant about the fraud?

We recommend a professional, brief denial without detailed accusations. Simply state the application was not approved based on information obtained during verification. Confrontational conversations rarely help and can escalate. The applicant knows what they did.

What if the applicant threatens legal action?

Document everything and consult with an attorney if needed. However, threats from applicants caught committing fraud rarely materialize into actual lawsuits—they know their documents won’t hold up to scrutiny. Your documentation of the fraud is your protection.

How can I verify documents if I’m not a fraud expert?

Use professional screening services that include income and employment verification. Our service pulls data directly from verified sources rather than relying on documents that can be forged. The applicant typically pays for screening, making it essentially free fraud protection for landlords.

What’s the best way to prevent fraud before it happens?

Require multiple document types (pay stubs AND bank statements AND tax documents), always verify independently using contact information you find yourself (not provided by applicant), run comprehensive screening, and trust your instincts when something seems off. Most fraud is preventable with proper verification procedures.