Some people have turned this entire process into an industry chain, called "business incubation." The process is actually quite simple: first, register a company, create fake transaction records, hire some employees who don't actually come to work, pay them salaries that must be fully returned, and even the legal representative is hired with money. Once all the documents are fabricated and the timing is right, they sell this shell company to someone in urgent need of a loan.

What makes this trick so effective? All the materials look very complete—company files, transaction records, employees, legal representatives—all in place, but in reality, it's just on paper. When the bank's approval system checks, it can't find any flaws. The result is: the loan is approved, the money is received, but the company has no repayment ability at all. In the end, it's a bad loan—money is lent but not recovered, and the bank's funds are lost.

Many people get involved thinking simply: it's just not repaying the loan, and at worst, they'll be sued. But the reality is much more serious. Fabricating loan documents to defraud money is no longer a civil dispute; it's called **loan fraud**, which is a criminal offense. Not only do you have to repay the debt, but you'll also face criminal liability. The consequences are much more severe than imagined.

Therefore, in the financial industry, recognizing these tricks is more important than anything else.