The significant occurrence of bearing faults in electrical machines necessitates continuous online monitoring of the machine’s operating data with the main objective of ensuring both high reliability and efficiency and therefore minimizing the chance of unwanted breakdowns. This work focuses on the simulation of (defective) bearings, utilizing a dedicated model with five degrees of freedom (translational motion) in conjunction with an induction motor model. The primary objective is to gain a comprehensive understanding of how faulty bearings influence both the entire bearing itself and the machine, mainly concerning vibration signals and additional frictional torque. Additionally, various shapes of spalls on the raceway(s) are being described, analyzed and compared. This work is an extended version of the conference paper “Simulating Rolling Element Bearing Defects in Induction Machines”, presenting additional information on how to simulate spalls (with different shapes and sizes) on the inner ring of the bearing. Furthermore, the so obtained vibration signal is being examined and a method is proposed aiming to verify the simulation results and to predict the location of the spall (raceway of the inner or outer ring).