Credit score information stolen? Tips to detect and prevent fraud
New Delhi, Feb 21, 2025
If you suspect that you have fallen victim to credit fraud, immediate action is crucial. Contact your bank or lender to report the fraud
Among the various online financial frauds, credit score theft is another serious threat to consumers. This sophisticated form of identity theft can go undetected for months while causing devastating damage to victims' creditworthiness. Understanding how to detect and prevent credit score fraud is essential for protecting yourself.
Understanding credit score fraud
Credit score fraud occurs when an individual's personal information is stolen and used to open new credit accounts or make unauthorised purchases. This type of fraud can damage a person's credit score, making it difficult to secure loans or favourable interest rates for loans.
Common signs of credit score fraud
Unfamiliar inquiries: If you notice credit inquiries you don’t recognise, someone may be attempting to open new accounts in your name.
Unidentified accounts: The presence of unreported or unrecognised credit accounts could be a sign of fraud and should be investigated.
Unauthorised account activity: Suspicious transactions or unexpected changes in your existing accounts may indicate fraudulent access by scammers.
“Protecting yourself from credit card fraud isn't passive; it is an active process. Don't just check your statements – scrutinise them. Set up low-threshold transaction alerts so even small unauthorised charges get flagged. And be incredibly selective about where you use your card, both online and offline. Treat your card details like cash – guard them carefully,” said Prashant Kumar, chief executive officer of Kredit.pe.
How to prevent credit fraud
Stay informed: Regularly check your CIBIL score and report for any unusual activities or changes.
Use strong passwords: Employ complex passwords for online banking and shopping accounts, changing them frequently.
Enable alerts: Set up alerts with your bank or financial institution to receive notifications about transactions or changes in your account.
Secure personal documents: Keep sensitive documents in a safe place and shred any that are no longer needed.
Be wary of unsolicited communications requesting personal information. Always verify the source before responding.
If you suspect that you have fallen victim to credit fraud, immediate action is crucial. Contact your bank or lender to report the fraudulent activity and follow up with a written complaint.
[The Business Standard]
