Stolen identities, frozen dreams: How to survive credit frauds

Most credit bureaus in India offer a dispute resolution portal, customer service helplines and email support.

Anmol Gupta, a 34-year-old financial advisor from Bengaluru, discovered a fraudulent loan transaction in his credit report in June 2025. "When I checked my credit report, I noticed a loan account against my name, with a sanctioned amount of Rs 20,000,” he says. The report also displayed some equated monthly instalment (EMI) defaults and a few, small monthly repayments amounting to Rs 200-300 each. However, Gupta had never applied for the loan, and there was no actual disbursement in his bank account.

The non-banking financial company (NBFC) associated with the loan suggested paying Rs 27,000 to get a no objection certificate (NOC) and settle the outstanding loan. "I'm actively challenging the legitimacy of the loan and did not accept their demand to repay the amount," Anmol stated. To resolve the issue, he has taken several steps, including raising the issue with the NBFC and the credit bureau concerned, but has only received vague, inconsistent responses so far.

Similarly, Ankit Gupta, a 38-year-old energy consultant from Gurugram, fell victim to an identity fraud in 2021. "I discovered the fraud when I randomly checked my CIBIL credit score while exploring home loan options," he said. Ankit found multiple fraudulent loans across different NBFCs in his credit report, with loan amounts ranging from Rs 20,000 to Rs 4 lakh. "The fraudster had changed my photo on my PAN card to obtain the loans," Gupta adds.

The fraud significantly impacted Ankit's credit score, and it nosedived by around 100 points. He also faced hurdles while applying for home loans. Resolving the issue proved tremendously challenging, and his score was rectified only after persistent efforts over 6–8 months.

Credit fraud resolution: A step-by-step guide

Anmol Gupta plans to escalate the loan fraud to the Reserve Bank of India’s (RBI’s) ombudsman and file a complaint with the cyber cell, besides exploring legal action. “I want to understand how the scammers were able to lay their hands on my personal details and how the lender completed KYC verification with fake documents,” he adds.

According to Satish Mehta, Founder of Athena CredXpert, an LLP specialising in credit counselling, “To resolve fraudulent issues, one should take the following steps: report the fraud to the concerned bank or NBFC in writing, raise a dispute with the credit bureau with supporting documents, and keep records of all correspondence.” You must submit a written complaint to the lender (along with appropriate proof), who will then investigate the loan application for signs of forgery, impersonation, or misuse, he adds.

Most credit bureaus in India offer a dispute resolution portal, customer service helplines and email support. “Victims of fraud can raise a formal dispute online by submitting their personal identity proofs and fraudulent transaction details,” says Mehta.

Platforms like CIBIL TransUnion’s “Consumer Support Center”, CRIF HighMark’s “Dispute Origination System (DOS) and Dispute Resolution System (DRS) and Experian’s identity theft resolution, provide step-by-step guidance to resolve the dispute. However, consumers often need to actively follow up with the bureau and the lenders to ensure timely resolution.

Also read | Enquiries on your credit history, despite no loan application? Dial credit bureaus, RBI banking ombudsman for help

The clean-up challenge

To resolve the fraud, Ankit reported the crime to the cyber police, to the RBI ombudsman, and wrote to the lender that the fraudulent loan accounts be closed. Despite his efforts in the last four years only one credit bureau completely removed the loan. While others have still closed the loan, it is still shown as default previously made, leaving a scar on his credit reports.

“Credit bureaus facilitate dispute resolution by working with credit institutions when a consumer raises a concern. However, they are not authorised to modify or delete data independently,” says Ram Gunasekaran, Director and Head of Sales, CRIF High Mark India, a credit bureau. The credit institution – banks and NBFCs - involved must formally verify and update any changes. The report will reflect those updates once submitted by the member institution, he adds.

“Due to delays or gaps in follow-up, such fraudulent defaults may continue to reflect in credit reports, affecting high-ticket loan approvals. Consumers should escalate unresolved disputes to the banking ombudsman or RBI's Consumer Education and Protection Department (CEPD) if corrective action is not taken in a timely manner,” says Mehta.

Be vigilant to prevent fraud

According to Mehta, to prevent future credit-related incidents, individuals should take several steps. These include regularly monitoring their credit report, which can be done for free once a year per bureau as per RBI guidelines, using strong passwords and two-factor authentication for banking, avoiding sharing personal information over calls or suspicious websites, and considering subscribing to credit monitoring services.

As per RBI guidelines, credit bureaus are required to notify consumers whenever a credit inquiry is made in their name. “If a consumer notices an unauthorised inquiry, it may be a sign of fraud. The consumer should promptly inform both the credit bureau and the credit institution involved for further investigation,” says Gunasekaran.

Anmol points out that a fraudulent loan slipped into the credit report despite him being a finance professional. “This reflects serious gaps in the system. I’ve always been careful with my financial data, and yet this happened. Imagine the plight of someone who isn’t as financially aware,” he says.

Rather than settling quietly, he is taking the longer route — challenging the NBFC, escalating the matter to regulatory authorities, and raising broader questions about KYC integrity and credit reporting safeguards. “This isn’t just about fixing my credit report — it’s about setting a precedent and pushing for stronger protection for all consumers,” Anmol says.

You need to be proactive and persistent when dealing with potential financial fraud. “Flag suspicious loans or any other activity immediately to the credit bureau and financial institution, maintain detailed documentation and escalate issues to higher authorities if needed,” says Ankit Gupta.