Unemployed? And need a loan? No worries. There are a number of new, online businesses that will provide bogus pay stubs and employment verification over the phone.
But it is a worry to the Connecticut Banking Association, which recently issued a warning to its members about an increasing number of unemployed people lying on their loan applications by using online job-verification services. In essence, the Web sites are committing fraud on behalf of its unemployed clients applying for loans. And in many cases, the loans have been approved.
It has gotten the attention of state Attorney General Richard Blumenthal, who has confirmed that his office is looking into many of these types of employment-verification Web sites.
“We are investigating this apparent aid to people who may seek to defraud possible employers or lenders,” Blumenthal said. “This kind of service essentially aids people in their attempts to deceive. We’ve heard all the reports about this and it is something that has just come up recently.”
The matter has also garnered the attention of the state Department of Banking. James Heckman, the department’s spokesman, said banking commissioner Howard Pitkin is looking into the situation, but has not yet taken any action.
Price Is Right
“It’s something we’re trying to move after and understand what’s going on,” Heckman said.
Costs at the new employment verification Web sites vary, but the outcome is the same; establish and verify employment for an individual out of work.
And the price is affordable. At verifyemployment.net, a pay stub can be purchased for $55, and when a lender calls, telephone verification costs $25. On its Web site, the company, Total Access, offers to provide the type of information necessary to feign employment to assist with obtaining a loan for a house, car or apartment to rent.
To do so, Total Access will come up with a corporate name, address and telephone numbers as well as a paycheck stub to confirm the employment.
Calls to the telephone number listed on the site were not returned.
“We hear about stuff like this all the time,” said Lindsey Pinkham, senior vice president of the Connecticut Banking Association. “Unfortunately, with the Internet, it’s very easy to do things like this and it’s really an awareness issue right now.”
After verifying the existence of these Web sites in late October, Pinkham alerted the association’s members. “Part of my job is to make our members aware of what’s going on and possible situations they should look out for,” he said.
Faking employment to get a loan for $200,000 can be a big hit for a lender, he said.
