Cases of fraudulent loans linked to misuse of Aadhaar credentials have increased amid wider adoption of digital banking. Individuals are discovering loans registered in their names without their knowledge, leading to a decline in credit scores and recovery communications from banks.
Fraud Linked to Aadhaar-Enabled Services
With Aadhaar integrated across banking accounts, loans, mobile connections, and government schemes, fraudsters are exploiting compromised personal information to obtain loans without the account holder’s consent. In several instances, the issue comes to light only after a bank issues a notice or recovery agents initiate contact. In other cases, the first indication is a sudden drop in the individual’s credit score.
Detection Through Credit Reports and Bank Records
Verification of credit reports remains the most reliable method to identify unauthorised loans. Credit bureaus including CIBIL, Experian, and Equifax provide access to a free credit report once a year, which lists all active loans and credit cards linked to an individual. Several banks and financial companies also display loan status through mobile applications and websites after Aadhaar-based OTP verification, enabling confirmation of active loans in the individual’s name.
Actions Following Identification of a Fraudulent Loan
If a loan appears in records that the individual did not take, immediate action is required. The affected person should contact the concerned bank or lending institution and file a written complaint. Complaints should also be lodged on the Reserve Bank of India’s official grievance portal, along with filing a report at the nearest police station or cyber crime cell. Timely action can help safeguard the individual’s credit record and limit further losses.
