'Identity Theft' Using Old SIM Cards On The Rise; Experts Advise Regular Monitoring Of Financial Records
DSP Vipin Kumar said if someone receives notifications about a loan not availed in his/her number, it can be a case of personal data leak.
Published : January 27, 2026 at 2:21 PM IST
By Shreya Sharma
Shimla: The cases of 'identity theft' are increasing rapidly, as several instances have come to light recently where individuals have never even applied for a loan, yet a mountain of debt has accumulated in their names. The problem exacerbates when recycled SIM cards (old numbers issued to new customers) by telecom companies are misused.
In Shimla, Shalini bought a new SIM card in 2024. As soon as it was activated, she started receiving calls from banks and loan recovery agents looking for a person named 'Inderjeet'. Investigation revealed that the SIM card was previously owned by Inderjeet, who had availed loans from several banks using the number and then discontinued without paying the instalments.
This is not just a coincidence, but a major loophole. When a customer discontinues his/her SIM card without updating the new number with the bank, it becomes a mental torment for those being reissued.
Vineet Kumar Chauhan, manager of an Axis Bank branch in Shimla, said, "The bank's primary contact point is the mobile number provided by the customer. If someone changes the number without updating it in the KYC, the bank will continue to make recovery calls and send messages to the old number. Hence, in case of any change in contact number, the customer should immediately inform the concerned branch in writing for an update. Consumers should regularly check the 'Active Loans' section in their mobile banking apps".
DSP Vipin Kumar, who monitors cyber crimes, said, "It's not just limited to receiving calls. Fraudsters often use old customers' data to take out fake loans through fintech apps. Then, someone else withdraws money using your ID, and the burden falls on your credit score. If you are receiving notifications about a loan not taken out by you on your number, don't take it lightly. This can be an indication that your data may be compromised."
He explained that the most reliable way to detect fake loans in your name is through a credit report. "Organisations like CIBIL (Credit Information Bureau India Limited), Experian or Equifax maintain your financial history. You can view your free credit report once a year on their websites. After downloading the report, check the 'Accounts' or 'Enquiries' section. If you see any bank or loan account there that you never availed, then it's a fake loan," he added.
Kumar said the PAN card is the basis of all financial transactions of its holder, as one can track the number of active loans from it. Sometimes, large frauds are committed under the guise of small 'consumer loans' (such as financing a mobile phone), he added.
"To avoid such fraud, carefully examine your bank statements every month. If any EMI is being deducted from your account that you never approved, immediately inform the bank. Also, flag any suspicious transactions in your credit card statement. Additionally, keep your card in 'inactive' or 'locked' mode when not in use," Kumar said.
He said in case of a suspicious loan in your credit report, write an email to or visit the bank/financial institution in whose name the loan appears, requesting the loan disbursement documents. If they don't cooperate, file a complaint on the RBI's official portal (cms.rbi.org.in).
Additionally, file a complaint at your nearest police station or on the national cybercrime portal (cybercrime.gov.in), keep a copy of the complaint for future reference to prove to the credit bureau that you did not avail the loan. Visit the CIBIL website, navigate to the 'Dispute' section and challenge that specific loan entry. After investigation, CIBIL will remove that record from your report, which will improve your credit score, said Kumar.
"Many companies now offer 'credit monitoring' services. As soon as a new loan is issued in your name, you will receive an immediate notification. Also, do not share your Aadhaar and PAN card details with everyone. When providing photocopies, always write the purpose and date on them," the DSP said.
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