How to Prevent Mortgage Fraud and Lender Scams in India

Mortgage fraud can happen at any stage, not just when you apply, forged property documents, fake lender offers, and manipulated payment instructions can all target you before, during, or even after your loan is disbursed.

• The same property can be used to defraud multiple lenders at once. Duplicate title documents allow fraudsters to seek financing against a single property from more than one lender simultaneously, always check for existing claims before proceeding.
   
• A genuine lender's name and branding can be misused without their involvement. Fake loan offers often borrow a real lender's identity to appear credible, verify any offer directly through the lender's official website, not the contact details in the offer itself.
   
• Fraud doesn't stop at approval. Payment instructions and post-disbursement communications can also be manipulated, so verify any request for money or documents through official channels, even after your loan is already in place.
   
• Suspecting fraud doesn't mean a case is automatic. What happens next depends on the evidence and facts, but preserving records immediately protects your position regardless of how the matter unfolds.
   

If you have a loan with Bajaj Finance and receive an unexpected request or communication about it, verify it directly through My Account or the Bajaj Finance app rather than responding to the message itself, genuine loan servicing never depends on you acting through an unverified channel.

Mortgage fraud occurs when false, altered or unauthorised information is used to obtain or facilitate a property-backed loan through deception. It can involve borrowers, intermediaries, property-related parties or other individuals who provide misleading information or documents for financial gain. Fraud may include forged property title documents, false income or employment details, inflated property valuations, misrepresentation of property ownership or existing claims, misuse of another person's identity, or attempts to secure multiple loans against the same property. Fraud can also occur through fake loan offers that misuse a genuine lender's name or branding. RBI has highlighted fraud risks involving multiple financing against the same property through duplicate property documents and fabricated salary certificates. Mortgage fraud is not limited to the loan application stage. It may also involve property documentation, loan disbursement instructions, repayment details or communications after approval. Borrowers should carefully verify property and loan documents, use official lender channels, and report suspected fraud promptly to the relevant institution.

What are the common types of mortgage fraud?

Mortgage fraud can take different forms, but most schemes involve false information, forged documents, unauthorised transactions or misleading loan offers.

Common warning areas include:

RBI's fraud risk management framework for applicable NBFCs, including housing finance companies, provides for fraud prevention, early detection, and reporting.

How can you prevent mortgage fraud before taking a loan?

You can reduce mortgage fraud risk by independently verifying the lender, property documents, loan terms and payment instructions before sharing information or making payments.

Use these checks before proceeding:

1. Verify the lender: Visit the lender's official website and confirm that the contact details, loan product and application channel are genuine.
2. Check the property documents: Review ownership and title-related documents and obtain appropriate professional verification where required.
3. Verify the loan documents: Check the sanctioned amount, interest rate, applicable charges, repayment terms and other conditions before signing.
4. Use authorised payment channels: Make loan-related payments only through channels the lender confirms.
5. Protect personal information: Share identity, income and banking information only through verified channels and only when required.
6. Check unexpected requests independently: If someone asks for an urgent payment or document, contact the lender through its official channel before responding.
7. Keep records: Retain copies of applications, agreements, receipts, communications and property-related documents.

These precautions are especially important because property-backed lending can involve key ownership and security documents. RBI guidance has also emphasised verification of property title and related documentation as part of housing finance safeguards.

Existing borrowers should use authorised Bajaj Finance servicing channels to verify loan information, rather than relying on unverified messages or third-party contacts. If you have a loan with Bajaj Finance and receive an unexpected communication about your account, verify the information through the available official servicing channels.

Through the Bajaj Finance App

1. Sign in using your registered mobile number and OTP.
2. Open My Relations.
3. Select Loans.
4. Choose the relevant loan account.
5. Review the available loan and repayment information.
6. For an account-related concern, open Help & Support and select Raise Request.

Through the My Account portal

1. Sign in using your registered mobile number and OTP.
2. Open My Relations.
3. Select the relevant loan account.
4. Review the available account information.
5. Use Help & Support to raise a service request if you need clarification.

Do not use a phone number, payment link or website supplied in an unexpected message until its authenticity has been independently verified.

What legal protection is available against mortgage fraud?

Mortgage fraud can involve offences such as cheating, forgery, identity misuse or other unlawful conduct, but the applicable legal remedy depends on the facts of the case. A suspected fraud does not automatically establish criminal liability against a particular person. The evidence, the nature of the transaction, and the applicable law determine what action may be available.

For property and loan-related disputes, borrowers should:

• Preserve original documents and transaction records.
• Obtain written confirmation of disputed transactions where possible.
• Report suspected cyber-enabled financial fraud promptly through the appropriate channel.
• Contact the relevant lender's grievance mechanism for account-related concerns.
• Seek independent legal advice where property ownership, forged documents or other complex legal issues are involved.

RBI's fraud risk management directions require applicable NBFCs to maintain processes to detect and report fraud to relevant authorities. Borrowers should also distinguish between a genuine loan-servicing communication and an unauthorised demand for money or information. A payment made to a fraudulent intermediary may not be treated in the same way as a payment made through an authorised lender channel.