Payslip fraud fears

Updated 14.40 Fri Jun 01 2007

Keywords: Maurice Cheng, Institute of Payroll Professionals, payslips, fraud, loans, mortgages, banks, business, money

An increasing number of websites are thought to offer fake payslips helping people to take out bank loans they cannot afford.

The Institute of Payroll Professionals (IPP) claims "duplicate" documents are provided for a small fee, but the websites providing the service cannot legally check the details they are given because employers and the Inland Revenue are prevented from releasing such information by the Data Protection Act.

"To provide a payslip to someone where you have no proof of their earnings has to be deemed fraud" - Maurice Cheng

Payslips allow people to open bank accounts or take out loans and banks use the information to decide how much the customer can afford to borrow.

Maurice Cheng, the IPP's chief executive said: "To provide a payslip to someone where you have no proof of their earnings has to be deemed fraud.

"There are websites that claim people can buy replacement payslips for those that are damaged or lost but the IPP wants better monitoring of these providers to protect consumers and loan companies alike."

Some banks check the information provided on payslips but they have been encouraged to use stricter procedures.