Taking out a loan in another person’s name: the legal consequences of fraud

Taking out a loan using another person’s personal information without their knowledge or genuine consent can harm their financial interests. When using remote banking services, particular attention should be paid to protecting personal data, verification codes and online accounts. Legal awareness among students, teaching staff and employees plays an important role in preventing fraud.

Fraudsters may impersonate employees of a bank or another organisation and seek personal information and SMS codes under the pretext of “protecting an account” or “transferring money”. In some cases, they exploit personal relationships and trust to arrange a loan in someone else’s name and obtain the funds. Giving outsiders copies of identity documents or access to a phone increases these risks.

Article 168 of the Criminal Code of the Republic of Uzbekistan establishes liability for obtaining another person’s property or rights to that property through deception or abuse of trust. Arranging a loan in another person’s name and obtaining the funds in this way may constitute fraud where the required elements of the offence are established. Depending on the circumstances, penalties may include a fine, correctional labour, restriction of liberty or imprisonment. Where documents have been forged or a forged document has knowingly been used, liability under Article 228 of the Criminal Code may also arise. The court determines the applicable legal classification and sentence.

Compensation for material damage also has significant legal consequences. Under Article 168 of the Criminal Code, restriction of liberty and imprisonment do not apply when the material damage caused has been compensated. However, this does not automatically remove liability.

If a person knowingly and voluntarily enters into a loan agreement in their own name and then gives the money to someone else, that person’s promise to “make all the repayments” does not automatically discharge the borrower’s obligations to the bank. Under Article 744 of the Civil Code, the borrower undertakes to repay the loan and pay interest. At the same time, a missed payment does not necessarily constitute fraud: deception and criminal intent must be established through evidence.

Anyone who discovers a loan taken out in their name without consent should promptly submit a written or electronic complaint to the lender, dispute the loan and request copies of the relevant documents. It is also important to report the matter to the internal affairs authorities and preserve correspondence, SMS notifications and payment records. Under the regulation registered on 21 January 2026 as No. 3759, once the lender receives the relevant procedural document recognising the person as a victim of fraud involving an online loan, the accruals and collection specified in the regulation must stop. Filing a report alone does not automatically cancel the loan.

To prevent fraud, never share SMS verification codes, banking application passwords or electronic digital signature keys. Avoid opening unknown links, installing applications or approving a loan at a stranger’s request. As an additional safeguard, the my.gov.uz portal offers a service to impose a prohibition on entering into credit agreements. Protecting personal information, understanding loan terms before approval and promptly reporting suspicious circumstances help safeguard financial security.