The Cost of Outdated Income Checks (and How to Solve It)

The Hidden Crisis in Income Verification

In 2023, 42% of loan applicants abandoned their applications due to the lengthy and cumbersome income verification process. Meanwhile, 67% of landlords reported frustration from tenants who were unwilling to share their bank statements. These delays aren’t just inconveniences-they’re costing your business.

But that's not all. Fraudulent income claims surged by 35% in 2023, a direct result of the increasing sophistication of AI tools that generate near-perfect fake pay stubs in seconds.

How are outdated verification processes contributing to this? Let’s take a closer look at the major failures of traditional income checks and how they can be streamlined.

3 Ways Traditional Income Checks Fail

1. Time = Lost Revenue

Traditional income verification methods rely on manual reviews and document uploads, which can take 3 to 7 days to process. During this time, applicants often choose competitors with faster approval processes.

For instance, mortgage lenders lose $8,000 per day for every unapproved loan stuck in the verification process. That’s money lost every single day a loan application is delayed-money that could go to a more efficient competitor.

2. Privacy Invasion Drives Drop-Offs

Income checks often require applicants to share sensitive financial data, such as bank login credentials or multiple proofs of earnings. This creates a major friction point, especially among gig workers, with 54% of them refusing to share their bank logins for income checks.

For low-income applicants, the request for repeated proof of earnings can feel intrusive and stigmatizing, discouraging them from completing the process altogether. As a result, you lose the opportunity to work with potential customers who may have been an excellent fit.

3. AI Fraud Outpaces Old Systems

AI-powered tools, like ChatGPT, are now able to generate realistic pay stubs in seconds, making it easy for fraudsters to create convincing fake income documents.

Traditional PDF-based income verification systems are incapable of catching many of these forgeries. In fact, they miss up to 23% of fraudulent documents, putting your business at risk for accepting faked income claims and exposing your brand to potential liability.

The Reclaim Solution: No Docs, No Delays

It’s time to leave outdated, manual processes behind. TheBlueCheck revolutionizes income verification by providing a tamper-proof, instant solution that bypasses the need for document uploads altogether.

Here’s how it works:

1. Instant Verification via Trusted Sources
   By logging in to IRS and payroll systems, users access pre-validated income data directly from government and payroll databases.
   
   
   

2. Zero Sensitive Data Sharing
   Unlike traditional methods, applicants never have to share sensitive financial information. Instead, they select pre-validated income ranges from encrypted records, ensuring privacy and security.
   
   
   

3. Fraud-Proof by Design
   Since Reclaim doesn’t rely on documents or uploads, there’s nothing for fraudsters to forge. Our system checks data against trusted sources in real time, ensuring 100% authenticity.
   
   
   

No more waiting days for approval. No more worrying about fraudulent documents. Reclaim's instant income verification provides a seamless, secure experience for both your applicants and your business.

Final Thoughts

The outdated income verification process is costing you both customers and money. Time delays, privacy concerns, and fraud risk are all contributing to a broken system that frustrates applicants and drives them to competitors. But with BlueCheck, you can streamline income verification, cut fraud risk, and provide a smoother, faster process that leads to happier customers.