Fraud and Integrity Checks

Why this matters

A single altered statement sent to a funder can end a broker's relationship with that funder, and can expose the company to legal claims. Funders run their own fraud checks. When they catch something we missed, they do not only decline that file: they stop trusting the desk.

Integrity has two sides:

1. File integrity: the documents are real, complete and belong to the merchant.
2. Our integrity: we never alter, hide, invent or coach. Ever.

Warning signs in documents

File and format signs

• The PDF is a photo, screenshot, scan of a printout or an editable document instead of a bank download
• File details show it was created or changed long after the statement period, or show an editing program instead of the bank as the source
• Pages look flattened into an image when this bank normally issues text PDFs (you cannot select the text)
• Some text can be selected and some cannot on the same page
• File size is very different from the other months from the same bank

Visual signs

• Mixed fonts or font sizes in numbers or names
• Digits that do not line up in columns, or look slightly bolder or blurrier
• Logos or headers that differ between months
• White boxes, smudges or uneven backgrounds around numbers

Math signs

• Opening balance does not equal the prior month's closing balance
• Running balance does not add up line by line
• Totals at the top do not match the transactions listed
• Deposit or withdrawal counts in the summary do not match the lines

Page signs

• Missing pages, repeated pages or pages out of order
• "Page 3 of 5" followed by "page 5 of 6"

Behavior signs

• Merchant refuses to provide the month-to-date or a bank-verified connection
• Merchant sends only screenshots, or "re-typed" statements
• Revenue jumps sharply in the month or two before applying, with large round deposits
• Deposits dated on bank holidays or weekends at a bank that does not post on those days
• Pressure to "submit now, I'll send the rest later"

Identity signs

• Name or address on the ID does not match the application or statements
• ID looks edited, is expired, or the photo area looks altered
• A newly formed business claims many years of history
• The same documents appear under a different merchant name in the CRM (duplicates)
• The person on the phone cannot answer basic questions about the business
• Contact email or phone changes suddenly mid-file

Stacking concealment signs

• Merchant says "no advances" but statements show fixed funder-style debits
• A large funding credit appears with no explanation
• Merchant asks you not to mention another advance
• Payments to a funder suddenly stop with no payoff

How to respond: the calm script

Never accuse. Many warning signs have innocent explanations: a bank changed its format, an owner printed and scanned because they did not know better. Your job is to ask for the stronger version of the document, then escalate.

Asking for bank-original PDFs

You: Thank you for sending these. The funders we work with only accept statements downloaded directly from the bank, so they can verify them quickly. Could you log in to your bank's website or app and download the PDFs from the statements section? It usually takes a couple of minutes.

Offering a bank-verified connection (if your campaign uses one)

You: Another option that many owners prefer: we can send you a secure link that lets you connect your bank directly, read-only, so the statements come straight from the bank. You never share your password with us. Would that be easier?

Asking about a mismatch

You: I want to make sure the file is accurate. I see a weekly payment of (AMOUNT) that started in (MONTH). Can you tell me what that is?

Record the answer word for word.

If the merchant asks you to leave something out

Them: Can you just not mention that second advance? It'll be paid off soon anyway. You: I understand why you'd ask. I can't leave it out. Funders see every payment on the statements, and a file that leaves something out usually gets declined, and it can close doors with that funder. What I can do is note that you expect it to be paid off soon, so they have the full picture.

Then note the request in the CRM and tell your lead.

Escalation steps

1. Stop. Do not submit, and do not move the file forward.
2. Document. In the CRM, write exactly what you saw: which document, which page, what looked wrong. Facts only.
3. Ask the merchant for bank-original documents or a bank-verified connection, using the calm script.
4. Escalate to the desk lead the same shift with your note.
5. Wait for a written decision from the desk lead. Do not discuss your suspicion with the merchant.

Our own integrity

The fastest way to end a career in funding is to "help" a file. These are never allowed, no matter who asks, including a merchant, a closer or a client manager:

• Editing, re-typing, cropping or combining documents in a way that changes content
• Filling in an application field with a guess or a number the merchant did not give
• Suggesting answers ("say 12 months, it's close enough")
• Telling a merchant how to make statements look stronger before submitting
• Hiding a position, a lien or a bad month from a funder
• Creating a lead, application or document that does not come from a real merchant
• Signing anything on behalf of a merchant

If anyone asks you to do any of these, refuse politely, and report it to your Narqix team lead. Narqix will always back you for refusing.

Check yourself

1. Name three math signs that a statement may be altered.
2. What do you say when a merchant sends photos of printed statements?
3. Write a factual CRM note for a statement where the running balance does not add up.
4. A closer asks you to "just round up" the revenue on the application. What do you do?
5. What are the five escalation steps?

© Narqix Academy