We use hourly and daily reports from the realtime reporting gage network over the continental U.S. to demonstrate these effects. Where possible, the resulting impact is assessed by comparison with archived values from the high-quality retrospective Hourly Precipitation Dataset (HPD). We find that (1) many of the realtime stations have unrealistically large frequencies of daily precipitation; (2) area-averaged precipitation estimated from these stations during sporadic convective rain episodes are often 50% or more too large; and (3) automated data occasionally show nonphysical periodicities that appear to be caused by faulty telemetry. Methods to identify and correct for 'missing zero' stations are discussed. By examining distributions of daily rainfall rates observed at hourly stations, we set reasonable limits for hourly data dropout rates. Finally, to roughly estimate the effect of data problems such as these on model verification credibility, we present verification scores (including bias and equitable threat score) for Eta model runs computed with corrected and uncorrected gage reports.