PAN Card Fraud: You’re sitting comfortably at home, and suddenly you get a call from your bank informing you that your EMI is due. You’re shocked because you haven’t taken out a loan. But the reality is that a loan is already running in your name. Fraudsters have simply misused your PAN card information. Cybercriminals are currently using PAN details to create a web of fraud that puts money in their pockets, while ordinary people are left with the responsibility of the loan. Therefore, it’s important to understand how PAN cards are being misused and how to protect yourself from this.

How PAN Card Frauds Are Happening

The PAN card is no longer just a tax-related document; it has become your entire financial identity. The PAN is essential for every process related to opening a bank account, obtaining a loan, applying for a a credit card, and investing. This is why fraudsters are targeting it. They obtain PAN information by sending fake calls or messages under the pretext of updating your KYC. Sometimes, the PAN is uploaded to fake loan apps or websites. This information can also reach the wrong hands through a photo of the PAN posted on social media or a data leak. Once they obtain the PAN, fraudsters immediately obtain loans in your name from digital loan apps or some NBFCs.

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Loan taken in your name

The most dangerous aspect of this type of fraud is that the loan amount is transferred to the fraudster’s account or wallet, while the responsibility for paying the EMI remains in your name. After some time, you start receiving calls from the bank or a recovery agent. By the time you discover the truth, your credit score has dropped significantly. It becomes difficult to obtain a loan or a credit card in the future.

How to spot misuse of PAN

If you start receiving messages or emails related to a loan or EMI that you don’t know about, you should be alert. Unexplained calls from a bank or recovery agent, a sudden drop in your credit score, or the appearance of an unknown loan account in your CIBIL and Experian reports are also red flags.

Where People Make Mistakes

Uploading your PAN by clicking on an unknown link, sharing your PAN card photo on social media, downloading fake apps lured by the promise of a quick and affordable loan, and trusting threatening calls posing as KYC updates are common mistakes that fraudsters exploit.

Easy Ways to Avoid PAN Fraud

Do not share a copy or photo of your PAN card with strangers. Only seek loans or financial services from RBI-registered banks or NBFCs. Stay away from suspicious loan apps and websites. Be sure to check your credit report every three to six months. In case of any doubt, use the credit alert or freeze feature in CIBIL. Verify any KYC-related calls or messages directly with the bank’s official website or customer care.

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What to Do If a Fake Loan Is Found

First, file a written complaint with the concerned bank or NBFC. Then, file a cybercrime complaint at cybercrime.gov.in. Dispute the loan in your credit report, and if necessary, file an FIR at the nearest police station. Taking timely action can protect both your credit score and your future.

PAN Card Is Your Identity

PAN card is not just a card; it’s the key to your entire financial life. A little carelessness can land you in debt you never imagined. So, be vigilant, be aware, and don’t fall for any fake calls, messages, or apps. Remember, your most powerful weapon against PAN fraud is your caution.