Loan Fraud


Fraudsters are increasingly restoring to identity thefts and raising loans in the names of their victims. There have been several instances in the recent past where the victims, during a routine check of their CIBIL ratings, got to know their identities had been used to raise loans and defraud institutions.

Your data sells cheaper than chewing gum

Fast and simple online loans attract borrowers, consumers, and cyber criminals. Fraudsters look to take advantage of short transaction cycles, an abundance of breached information and also the obscurity afforded them by the internet.


With the massive proliferation of digitisation, individuals now have easy channels to apply for loans and get instant approvals depending on amount applied for. Fraudsters can now use your key personal information such as PAN number and easily apply for multiple loans through multiple agencies, piling up a huge debt for their victim. This in turn would affect the overall credit score of the victim and leave him with a bad credit rating going forward.


In a recent loan fraud case in Mumbai, the fraudster stole the victim’s identity to apply and avail a loan of INR 41 Lakhs for a home loan. The documents viz. KYC and income papers were stolen and used for availing the loan. The impersonator also availed loan from multiple institutions. Also a 35-year-old manager of a private firm was shocked to learn that a fraudster had used his PAN number and raised a loan of Rs 4.1 lakh in October 2017 to buy a Swift Dzire car and defaulted on repayment.