Fake PWM Internship on Resume---offer reference

Accepted an offer to intern for a large non BB, commercial/corporate bank. I have 5 professional work experience on my resume, and athletic experience. at the bottom of my resume on the oldest experience listed I put that I did a PWM internship, one of those bs ones that every freshman does unpaid. However after I accepted that offer 2 years ago and really thought about what it meant to work for free, I told the advisor I would not be working there, and ended up getting a job at the mall. Since then I have added some good work experience to my resume.

Now I have to pass a background check and reference check and am stressing out, as I still put that position on my resume. It was a foolish move as I could have easily taken it off and added a student administrative assistant position from my school, and considering that the pwm internship was not even mentioned at any of the interviews. The reference check will be performed by a third party and ive been told by former interns that they only listed 2 or 3 references. Does anyone know how reference checks work, and if I am screwed? I am not worried about the background check.

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