Identity theft is when someone uses your personal documents or digital identity, such as your Aadhaar, PAN, signature, bank account, SIM or email, to obtain a loan, a card, a connection or a benefit in your name. The defence is speed and paperwork: report the misuse, dispute the entries, and build a written trail that proves the transaction was not yours.
When this matters
This applies when a loan or credit card you never applied for appears on your credit report, when a message tells you a SIM was issued in your name, when a bank account or UPI handle is opened using your papers, or when a lender calls to recover a debt you know nothing about. It also applies to a lost or photographed set of documents, and to a former employer or relative who kept copies of your KYC.
What identity theft covers
- Documents. Aadhaar, PAN, passport, driving licence, voter ID, ration card, and a scanned or photographed signature.
- Bank and credit accounts. A new savings account, card, personal loan, gold loan or overdraft opened in your name.
- The SIM. A new connection or a duplicate SIM issued in your name, which then receives your OTPs.
- Digital identity. Email, social media, UPI, and government-linked accounts.
Immediate steps
- Call the bank or issuer, ask to freeze or block the affected account or card, and note the complaint reference.
- Raise a dispute with the credit bureau (CIBIL, Experian, Equifax or CRIF) so the entry is marked disputed and cannot quietly deny you credit later.
- Inform the issuer that opened the account in writing, asking it to produce the application, the KYC and any video verification or signature used.
- File a police complaint: an FIR under Section 173 BNSS 2023 (formerly Section 154 CrPC) or a written complaint at the cyber cell, and a report on the National Cyber Crime Reporting Portal.
- Where an Aadhaar or PAN issue is involved, inform the issuing authority so the misuse is recorded.
The offences that may apply
Identity theft is punishable under Section 66C of the Information Technology Act 2000, and cheating by personation using a computer resource under Section 66D. Where documents are forged, the forgery provisions of the Bharatiya Nyaya Sanhita 2023 apply alongside cheating under Section 318 BNS 2023 (formerly Sections 415 and 420 of the Indian Penal Code 1860) and cheating by personation under Section 319 BNS 2023 (formerly Sections 416 and 419 IPC). Our cyber law and cyber fraud teams file the complaint and follow the money trail.
The affidavit and indemnity some institutions demand
Banks and lenders usually will not reverse a fraudulently opened account or write off a loan until you file a notarised affidavit and an indemnity bond. The affidavit states that you did not apply, did not receive the money, and did not authorise the transaction, and it annexes the FIR copy. The indemnity bond promises to compensate the institution if it later turns out that the transaction was authorised, which is why you must read it before signing. Keep a certified copy of both.
The paper trail for a loan taken in your name
- The FIR copy or the acknowledgement of your complaint.
- Your identity and address proof dated after the event.
- The sanction letter or account statement showing the loan, the amount and the disbursal date.
- A written denial to the lender asking it to produce the application, KYC and signature it relied on.
- Your credit report showing the disputed entry.
- Every email, letter and reference number exchanged with the lender, the bureau and the police, filed in order.
Where the lender refuses to act and the entry damages you, a civil claim can accompany the criminal complaint; see the civil litigation formats.
Where the fraud has already caused a default on your credit record, a legal notice to the lender and the bureau is the next step, and if the entry is not corrected the civil suit seeks a declaration that the loan is not binding on you, together with damages for the harm to your credit. Keep every document in date order, because a loan taken in your name is proved by showing where your own application, signature and receipt are absent. If a loan was taken in your name, contact the office with the credit report and the lender's letters.
Common questions
Can I be held liable for a loan I did not take?
No, as long as you did not authorise it and you take timely action. Your defence is the absence of any application, signature or receipt by you, proved through the affidavit, the FIR and the lender's own records, which you can compel the lender to produce.
What is the first thing to do?
Freeze the affected account and raise the dispute with the credit bureau, because a wrong entry can silently block your future loan and card applications. Then file the police complaint, since institutions ask for the FIR copy.
Do I need a lawyer for the affidavit?
The affidavit is sworn before a notary, but the wording matters because it becomes evidence. An affidavit that admits a connection to the transaction can weaken your defence, so it should be prepared around the facts of the specific loan.
How long does correction take?
It varies with the institution. The FIR, the dispute entry and a written demand usually move the process, and where a lender delays, a legal notice and, if needed, a civil claim follow.
If a loan was taken in your name, bring the credit report and the lender's letters when you first meet. FileX Advocates & Legal Consultants, Kolkata, drafts and files these matters before the Calcutta High Court, City Civil and Sessions courts, magistrate, family, consumer and tribunal forums. Call +91 7439811422 or WhatsApp us for a free first consultation.