How to Spot Fake Pay Stubs
Learn to identify fraudulent pay stubs and understand the serious legal and financial consequences of using fake income documents.
Why Fake Pay Stubs Are a Serious Problem
Using or creating fake pay stubs is not just unethical—it's illegal and can result in severe penalties.
Criminal Charges
Creating or using fake pay stubs can result in federal fraud charges, including wire fraud, mail fraud, and identity theft.
Massive Fines
Penalties can reach up to $1 million in fines for mortgage fraud and other financial crimes.
Prison Time
Convictions can result in up to 30 years in federal prisonfor mortgage fraud or financial statement fraud.
Red Flags: How to Identify Fake Pay Stubs
Look for these warning signs when verifying pay stubs:
1. Missing Key Information
Legitimate pay stubs always include: employee name, employer EIN, Social Security number (last 4 digits), pay period dates, gross pay, all deductions itemized, net pay, and YTD totals. Missing any of these is a major red flag.
2. Round Numbers
Fake stubs often show suspiciously round numbers ($2,000.00, $500.00, etc.). Real pay stubs have precise calculations with cents ($2,173.42, $487.36) due to tax withholding formulas.
3. Incorrect Tax Calculations
Verify that Social Security (6.2%) and Medicare (1.45%) match gross pay. Federal and state taxes should align with current tax brackets. Fake stubs often have incorrect or missing calculations.
4. Font and Formatting Issues
Look for inconsistent fonts, misaligned text, different font sizes, or obvious copy-paste edits. Professional payroll systems generate uniform, clean documents.
5. YTD Totals Don't Add Up
Year-to-date amounts should increase logically with each pay period. If YTD gross pay divided by number of pay periods doesn't match current gross pay, it's suspicious.
6. Employer Can't Be Verified
Google the company name, phone number, and address. Fake stubs often list non-existent companies, residential addresses, or disconnected phone numbers.
7. Generic Template Appearance
Many fake stubs use obvious free online templates with generic designs. Legitimate companies typically use branded payroll software (ADP, Paychex, Gusto) with distinct formatting.
8. No State Tax (When Required)
If the applicant works in a state with income tax (like California, New York, etc.) but the pay stub shows no state tax withholding, it's highly suspicious.
9. Watermarks or "Sample" Text
Some fake stubs forget to remove "SAMPLE," "VOID," or watermark text from template generators. Legitimate pay stubs never have these markings.
10. Unrealistic Income for Position
If someone claims to work entry-level retail but shows $100K+ annual income, investigate further. Income should match industry standards for the stated position.
How to Verify Pay Stub Authenticity
Contact the Employer Directly
Call the employer's HR department (find the number independently, don't use the one on the stub). Verify employment, position, and income.
Request Bank Statements
Ask for 2-3 months of bank statements showing direct deposits that match the pay stub amounts. This is harder to fake than pay stubs alone.
Use Employment Verification Services
Services like The Work Number or Equifax can verify employment and income directly from employers' payroll systems.
Check Math and Tax Calculations
Manually verify that all deductions add up correctly. Use online tax calculators to confirm federal and state withholdings match the stated income.
Request W-2 Forms
For year-end verification, request W-2s from the previous year. Cross-reference YTD amounts from pay stubs with W-2 totals.
Legal Consequences of Using Fake Pay Stubs
Criminal Charges
- Wire Fraud (18 U.S.C. § 1343)
- Mail Fraud (18 U.S.C. § 1341)
- Bank Fraud (18 U.S.C. § 1344)
- Making False Statements (18 U.S.C. § 1001)
- Identity Theft (if using someone else's information)
Penalties
- Prison: Up to 30 years for mortgage fraud, 20 years for wire/mail fraud
- Fines: Up to $1 million for individuals, $5 million for organizations
- Restitution: Must repay victims for losses caused by fraud
- Civil Penalties: Additional fines from regulatory agencies
- Criminal Record: Permanent felony conviction affecting future employment
Other Consequences
- Immediate loan/rental application rejection
- Blacklisting from lenders and landlords
- Damage to credit score
- Foreclosure or eviction if already approved
- Loss of professional licenses
- Deportation risk for non-citizens
The Right Way to Create Pay Stubs
If you're self-employed, a contractor, or need documentation for your legitimate income, JustPayStubs creates accurate, honest pay stubs with proper tax calculations.
What Makes Our Pay Stubs Legitimate?
Important: Always provide truthful, accurate information. Our service helps you document your real income professionally—we never encourage falsifying information.
Disclaimer: This article is for educational purposes only. JustPayStubs creates legitimate pay stub documents for individuals to record their actual earnings. We do not condone or support the creation of fraudulent documents.
Using fake pay stubs is illegal and can result in criminal prosecution. Always provide truthful, accurate information on all financial documents.