Income fraud refers to the act of providing false information about one's earnings or financial status, often to gain benefits or loans. This can involve inflating income figures on applications for credit, housing, or government assistance programs, leading to unauthorized financial advantages. Individuals or businesses may commit income fraud to qualify for loans they would not otherwise receive. This illegal activity can result in serious consequences, including legal penalties, loss of financial benefits, and damage to one's credit score. Authorities actively investigate and prosecute cases of income fraud to protect the integrity of financial systems.