Creating fake bank statements to secure a loan is illegal and constitutes fraud. Inscribe uses rulesbased fraud detection capabilities and machine learning to generate a full analysis of the legitimacy of an application document.Lying on a loan application may seem harmless, but even if a lender does not verify every piece of information, it is still considered fraud. Learn how you can detect and prevent document fraud. Many online lenders ask borrowers to upload bank statements, pay stubs, tax forms, and other financial documents to assess creditworthiness. Loan application fraud is the submission of false information on a loan application to fraudulently obtain funds or favorable terms. A fraudulent or negligent misrepresentation can lead to the rescindment of a contract in addition to a payment of damages to the other party who was misled. Learn to identify fake bank statements with essential verification tips.