PAN Card Fraud: Tips to Detect and Prevent Misuse

A PAN card is an important document that is required when you open a new bank account, apply for a credit card, secure a loan, or make an expensive purchase like buying property or real jewellery. It is easier than ever to make big online transactions by just using PAN card details. However, due to the ease of transaction, it has also seen a rise in online scams and frauds related to PAN cards. 

This blog explores common PAN card frauds and measures one can take to address them.  

What is a PAN Card?  

The Permanent Account Number (PAN) card is a 10-digit alphanumeric number issued by the Income Tax Department. A PAN card acts as proof of identity during document verification. Many banks, NBFCs and employers require PAN card details for verification purposes.

In recent times, it has become easier than ever to apply for an instant loan, as platforms like Zype, a personal loan app, allow loan applications with PAN card and Aadhar card, making the process easy and convenient. 

Know how you PAN Card can be Misused  

Many banks and NBFCs offer instant collateral-free loans with just your PAN card details. While this has made access to loans easier, it has also led to a rise in PAN card misuse. Fraudsters can use this information to open a bank account and carry out illegal or fraudulent activities. Hackers can access this data and misuse it, often through third-party apps or services. In some cases, your PAN details can also be accessed when you book a train ticket or flight tickets.  

Thus, ensure your PAN card remains secure. To protect yourself, ensure your PAN card details remain secure. Avoid sharing them unless necessary, if you suspect any misuse, report it to the authorities immediately. 

How to Check if Someone is Using Your PAN Card  

If you suspect that someone is misusing your PAN card, you can check your credit score. It is an effective way to know if there are any unauthorized entries in the credit report: 

Here are the steps to check your credit score

• Major credit bureaus like Equifax and TransUnion CIBIL offer the option to check your credit score 

• Go to their official website and search for “Check Your Credit Score” facility. Some bureaus offer free reports, while some may charge for the report. 

• Enter basic personal details like name, email ID, mobile number and date of birth. You will receive an OTP for verification. 

• Once verified, you can access your credit score, and check if there are any unauthorized entries or discrepancies.  

Also Read: Applying for a ₹5000 Loan with a PAN Card

PAN Card Scams You Should Beware of

There are several ways in which someone can misuse your PAN card. It is important to be aware of common PAN card scams so that you are alert when such instances take place:  

• Applying for loans & credit cards: Fraudsters can steal your PAN details to open bank accounts or apply for loans or credit cards in your name. If they take loans, you, as the victim, may be held responsible for repaying the loan amount. 

• Illegal Activities: Scammers can use your PAN card to carry out illegal transactions like buying firearms or laundering money, all under your identity.  

• Renting a car or hotel room: Fraudsters can use PAN card details to book a hotel room or rent cars to carry out illegal activities and if reported, the PAN owner will be held liable for those crimes. They may rent a car to perform illegal activities like smuggling or trafficking. 

• Phishing Emails or SMS scams: Scammers can send you fake emails with misleading email IDs or SMS messages informing you about PAN card verification to avoid account suspension or penalties. Beware of such emails or such SMS and check the authenticity of the email ID and the mail or message received. 

Lost your PAN card? Here’s how to avoid misuse of lost PAN card 

Be careful when using a PAN card and use only when required. To avoid misuse of PAN card in the future, keep these things in mind: 

• If you must enter PAN card details online, first check the authenticity of the website. Check if the website has “HTTPS” prefix in the URL. This indicates the website has an SSL certification, making it safe for online transactions.
• When you sign documents with PAN photocopy, include your signature, date and reason like “for KYC only” on it.   
• Protect yourself from cyber scams and avoid giving personal details like name and date of birth on suspicious websites. 
• Check your credit reports regularly for any unauthorized entries and report them to the bureau if you notice any errors. 
• Clear cache and history from mobile to clear PAN details from device.

Some Other Types of Fraud  

There are many other scams that an individual may face due to his/her PAN card. We have listed below a few scams that you must be aware of: 

• Credit Card Fraud: Getting your credit card stolen can land you in big trouble. Cyber insurance can save you by safeguarding your money from such fraudulent credit card use.  

• Debit Card Fraud: Everyone has their bank accounts linked to their PAN card. This increases misuse of PAN cards leading to unauthorized transactions. You can apply for cyber insurance, to protect your money from such scams.  

• ATM Fraud: If your ATM card gets stolen, fraudsters can withdraw cash from your account and can lead to financial loss. Ensure your family’s financial security with cyber insurance coverage tailored to ATM fraud protection. 

• UPI Fraud Linked: UPI fraud, where cybercriminals may give you a call to inform you about an incomplete UPI transaction and then ask for another payment. If not verified, you may send them money assuming incomplete payment.  

How to Complain about PAN Card Fraud  

The government has made a website called, Aayakar Sampark Kendra to address PAN card-related issues/complaints. Here is how you can report PAN card misuse

• Go to the official website of TIN NSDL and select the ‘customer care’ option 

• Under ‘customer care’, click on ‘complaints/queries’ option 

• The website opens to a customer care form 

• Fill in this form with your personal details and PAN grievance 

• Submit the form to register your complaint 

Conclusion  

It is important to use your PAN card cautiously and keep it safe at all times. With cases of scams and frauds related to PAN cards on the rise, it is easy for fraudsters to steal your PAN card information and use it for illegal activities or financial frauds, potentially exposing you to financial loss. If your PAN card gets stolen or misused, you must report it immediately on the official website of TIN NDSL and register your PAN card grievance.