How to Check Someone Before You Lend Money or Do Business in India

A friend of a friend needs ₹2 lakh for a few weeks and promises it back with interest. A confident acquaintance offers you a share in a franchise if you invest now. A contact from a WhatsApp group says a trading tip will double your money. In each case you are being asked to trust a person with your money, often in a hurry. This guide shows how to check who you are dealing with, what public records can tell you, and how to protect yourself before any money moves.

The short version

• Confirm the person's identity in person and match it with their documents.
• If there is a business involved, look it up yourself on the GST portal and the Ministry of Corporate Affairs website.
• Search public court records, especially for cheque bounce and recovery cases.
• Search the news and the web for their name with the city and words like 'fraud' or 'cheating'.
• Talk to people who have dealt with them before, found through your own contacts.
• Put the deal in writing, pay only by bank transfer, and never pay because someone is rushing you.

Money frauds where a quick check helps

• Personal loans to acquaintances that are never repaid, sometimes by someone who has done the same to others.
• Partnership and franchise offers where the business, the outlet or the brand rights do not exist.
• Investment and trading tips in WhatsApp or Telegram groups that promise guaranteed or very high returns.
• Online friends or matches who build trust over weeks and then ask for money for an emergency.
• Job, visa or admission agents who take fees for placements that never happen.
• Bounced cheques given as security or repayment by someone with several similar cases already.

Step 1: Confirm who the person is

Meet in person at least once before money changes hands, and see an original photo ID. Note the full name, father's name and permanent address exactly as written. Visit their home or office if the amount is large. Be wary of anyone who will only talk by message, avoids video calls, or gives different names or cities at different times.

Step 2: Check the business, not just the person

If the deal involves a business, look it up yourself rather than relying on documents they send.

• GST registration: search the GSTIN on the official GST portal's 'Search Taxpayer' page. Check that the legal name, trade name, address and status (active or cancelled) match what you were told.
• Company or LLP: search the name on the Ministry of Corporate Affairs website to see whether it exists, whether it is active, when it was registered and who its directors or partners are.
• Investment advice: anyone who charges for investment advice or research should be registered with SEBI. Check the name on SEBI's list of registered intermediaries. A promise of guaranteed high returns is a red flag on its own.
• Lending or deposit schemes: a company that takes deposits or lends money as a business usually needs RBI registration. Check RBI's list of NBFCs, and report suspicious deposit schemes on RBI's Sachet portal.

Step 3: Search public court records

Court records in India are public and can show patterns that matter for money decisions. Pay special attention to cases under Section 138 of the Negotiable Instruments Act (cheque bounce), money recovery suits and cheating cases. One old case may have an innocent explanation. Several cheque bounce cases filed by different people tell a clearer story. Our guide to checking someone's criminal record explains how to search eCourts and how to read 'pending' and 'disposed'.

Step 4: Check the news and their online footprint

Search the person's full name together with their city, and then again with words such as 'fraud', 'cheating', 'arrested' or 'complaint'. Look at their public social media profiles: how old they are, whether their friends and work history look real, and whether the story they told you matches what they post. Common names produce many namesakes, so match the father's name, city and age before you draw any conclusion.

Step 5: Speak to people who have dealt with them

Ask mutual contacts, former partners, suppliers or previous lenders how dealings went, but find them yourself. References supplied by the person may be friends reading from a script. A genuine business person usually has a history that others can confirm.

Step 6: Protect yourself on paper

• Write down the amount, the purpose, the repayment date and any interest, and have both parties sign. A witness helps.
• Pay by bank transfer so there is a record. Avoid cash for large amounts.
• For a partnership, sign a partnership deed and consider registering it.
• Do not pay 'processing fees', 'tax' or 'release charges' to receive a loan, prize or return. That is the classic sign of a scam.
• Never share OTPs, UPI PINs or screen access, whatever the reason given.

Red flags to notice

• Pressure to decide today, or a 'limited slot' that will go to someone else.
• Guaranteed or unusually high returns.
• Reluctance to put anything in writing or to meet in person.
• Requests to pay a third party's account or a personal account for a business deal.
• A story that changes each time you ask a detail.
• Anger or emotional pressure when you say you want to check first.

A genuine person will understand that you want to check before you pay. Someone who objects strongly to a simple check has told you something important.

If you have already been cheated

• For online fraud, call the national cyber crime helpline 1930 immediately and file a complaint on cybercrime.gov.in. Speed matters for freezing money in transit.
• For other cheating, file a complaint at your local police station with every message, receipt and bank statement.
• For a bounced cheque, a legal notice must be sent to the person within 30 days of the bank's return memo. If they do not pay within 15 days of receiving it, a complaint can be filed under Section 138. Speak to a lawyer early, because these deadlines are strict.

What a fraudcheck.ai report checks (and what it doesn't)

Checking court records district by district takes hours. A fraudcheck.ai report costs ₹199 and is ready in about 5 minutes. You need the person's full name, their father's name (or husband's name for married women) and the city they live in. No ID numbers, documents or OTP are needed, and the person is never contacted or told.

• Court cases across India from public court records, pending and disposed, matched on name, father's or husband's name and city.
• News mentions: published news stories that name the person.
• Public social media presence: public profiles found for the person.

It is not a credit check, an identity check, police verification or a guarantee that someone will repay you. It is a fast, fair first look at public records before you decide. You can see a sample report first.

Frequently asked questions

How can I check if someone is a fraud in India?

Confirm their identity in person, look up any business on the GST portal and the Ministry of Corporate Affairs website, search public court records for cheating and cheque bounce cases, search the news for their name and city, and speak to people who have dealt with them before. No single check is proof, so look for a consistent picture.

Can I find out if someone has cheque bounce cases?

Yes, if a case has been filed in court. Cheque bounce cases under Section 138 of the Negotiable Instruments Act are court cases and appear in public court records, which you can search on eCourts or through a background check that searches court cases by name.

Can I check someone's CIBIL score before lending them money?

Not without them. Credit reports can be obtained by the person themselves or by regulated lenders, so you can ask the person to download their own report and show it to you.

How do I check whether a business is real?

Search its GSTIN on the GST portal and its name on the Ministry of Corporate Affairs website, visit its premises, and call the number listed on official records rather than the one you were given.

Where do I report online money fraud in India?

Call 1930, the national cyber crime helpline, as soon as possible, and file a complaint on cybercrime.gov.in. Keep screenshots, transaction IDs and bank statements ready.

Before you lend, invest or sign, run a check on fraudcheck.ai and use the steps above to read the results fairly.