In what situation would there be a red flag for fraud related to inquiries and established credit?

A situation that raises a red flag for potential fraud is indicated by discrepancies in credit history. When a borrower has inconsistencies in their credit report—such as significant differences between reported income and actual bank statements, unusual changes in credit usage, or a sudden spike in late payments—it can suggest that the information being presented may not be accurate or trustworthy. This inconsistency might signal that the borrower is not being honest about their financial situation, which is a common indicator of fraudulent activity.

The other choices describe scenarios where the information aligns with typical expectations based on a borrower’s profile. When inquiries or credit are consistent with the borrower's career, align with their demographic factors such as age or income, or meet the standards set forth by lenders, they typically suggest a legitimate borrowing situation, rather than raising suspicion of fraud.