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  1. #1
    Senior Member Reputation points: 1232
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    Bank Statements

    Forgive my ignorance, I'm re-entering the space after almost a decade

    What's the solution for "fraud statements" ?? In general, is this an indication that the merchant messed with the statements or that perhaps a previous ISO had messed with the statements and therefore now the merchant is black-balled on data merch?

    Isn't this easy to resolve and verify/confirm by simply doing the bank login as opposed to killing the deal outright???

  2. #2
    Senior Member Reputation points: 38047 Olderguy's Avatar
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    It means the bank statements have been manipulated and there is no resolution. Saw it a lot in the mortgage industry. There were websites what could do it for you. Just move on. Some lenders will catch it up front and some will have it go through underwriting to catch it. Doesn't matter who does it but it is usually the merchant. (Could be the broker too though) I had a broker demand I keep resubmitted it as it looked good to him and had good revenue.
    Last edited by Olderguy; 11-30-2022 at 03:06 PM.
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  3. #3
    Senior Member Reputation points: 14267
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    Quote Originally Posted by CFSCCorp View Post
    Forgive my ignorance, I'm re-entering the space after almost a decade

    What's the solution for "fraud statements" ?? In general, is this an indication that the merchant messed with the statements or that perhaps a previous ISO had messed with the statements and therefore now the merchant is black-balled on data merch?

    Isn't this easy to resolve and verify/confirm by simply doing the bank login as opposed to killing the deal outright???
    Question is why should the funder go through the labor of doing login? It takes away time from an UW to look at another deal that isnt fake. There is software to scan the banks for manipulation so if its declined up front its for a reason, other times the fake is so obvious its flagged. UW looks at banks all day they know the font and format of most major banks.

    Unless YOU do the login personally and pull the statements to sub to funder to have a re-look, but 9.9 / 10 the merchant wont want to to do it or just dont care if it gets declined because they know its fake.

  4. #4
    Senior Member Reputation points: 77496
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    Quote Originally Posted by CFSCCorp View Post
    Forgive my ignorance, I'm re-entering the space after almost a decade

    What's the solution for "fraud statements" ?? In general, is this an indication that the merchant messed with the statements or that perhaps a previous ISO had messed with the statements and therefore now the merchant is black-balled on data merch?

    Isn't this easy to resolve and verify/confirm by simply doing the bank login as opposed to killing the deal outright???
    I rather have it killed upon bank analysis. Problem is brokers cryyyyyyyyyy to have the UW just do manual login and waste our time.

    The best part of it is when they ask me for the real statements to submit the deal elsewhere. HAHAHAHAHA!

    Or, they even ask to have me analyze the real statements so we can give it some type of offer.......
    Joseph, The Brokers Nightmare
    I don't want peace, I want problems, ALWAYS!
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  5. #5
    Why would I waste time chasing a merchant down to do manual login when I can clearly see the statements were manipulated or altered (either visually or via a third party program like Decision Logic or Plaid)?

    It doesn't matter if the merchant or ISO altered the documents. Quite frankly, you'll never get an honest answer from either of them; the ISO will blame it on the merchant, the merchant will blame it on the ISO.

    I just flag the merchant and move on to deals that can actually fund.

  6. #6
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    What about real bank statements with fraud in them? I have been coming across many files with cash deposits where they write checks out to several people, those checks are all cashed at the same check-cashing place and then redeposited back into the account. As a result, it appears their revenue is high but it is the same money being recycled. Money laundering?

  7. #7
    Senior Member Reputation points: 80829 ridextreme's Avatar
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    Quote Originally Posted by CFSCCorp View Post
    Forgive my ignorance, I'm re-entering the space after almost a decade

    What's the solution for "fraud statements" ?? In general, is this an indication that the merchant messed with the statements or that perhaps a previous ISO had messed with the statements and therefore now the merchant is black-balled on data merch?

    Isn't this easy to resolve and verify/confirm by simply doing the bank login as opposed to killing the deal outright???
    If it's obvious the statements are fraudulent, why on earth should they even bother asking for the "real statements" when the merchant just tried to screw over the funder?

  8. #8
    Senior Member Reputation points: 20045
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    once had a merchant send in fake statements, we called him out before submitting it and did a manual log in dude had 84$ in his account

  9. #9
    Quote Originally Posted by WaterviewCap View Post
    What about real bank statements with fraud in them? I have been coming across many files with cash deposits where they write checks out to several people, those checks are all cashed at the same check-cashing place and then redeposited back into the account. As a result, it appears their revenue is high but it is the same money being recycled. Money laundering?
    Not money laundering. That would be considered check kiting. Still illegal.

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