Your Credit Profile Is Easier to Steal Than Your Bank Money

A person’s credit profile can be misused more easily than their bank account in India.

India’s digital lending ecosystem relies on credit bureaus (commonly called CIBIL) that store borrowers’ repayment histories. Lenders access these reports instantly when processing applications. However, poor identity checks and the absence of verified consent allow fraudsters to trigger inquiries and get loans approved using only basic information like phone numbers or emails.

Many times, fraudsters exploit weak consent systems, misleading OTP flows, and rushed digital lending processes to take loans in someone else’s name. Many victims struggle to get fraudulent loans removed from their credit reports and sometimes even repay them to avoid harming their credit scores. Influential individuals may get quick resolution, but ordinary borrowers often suffer silently.

India’s system is vulnerable because of these three points:

• No verified informed consent before credit report access
• No instant alert when a report is pulled
• Hurried disbursals without proper documentation or ID verification

Other countries offer stronger safeguards—such as consolidated credit reports and the ability to “lock” credit access, similar to switching off a debit card.

However, India already has a robust consent architecture through the Account Aggregator framework, but it hasn’t been applied to credit bureaus. Implementing verified consent, instant alerts, and secure disbursal checks would sharply reduce fraud.

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