Fake Paystubs Are Draining Billions From Lenders
By Suparna Goswami (gsuparna) Thousands of loan applications have listed a small Baltimore computer store as the place of employment for borrowers claiming high salaries. In reality, the firm never employed that many people. The company allowed individuals to claim it as an employer in exchange for cash. As a result, lenders received thousands of loans with bogus employment information, and their outdated verification systems did not detect them. Income and employment questions are basic tenets of applications for credit, insurance, rentals and other agreements. But a growing number...