Cases of online loan fraud and identity theft are increasing rapidly these days. You must have heard about getting a SIM card on someone else’s ID, but have you ever heard that someone else has borrowed money on your PAN card? In such a situation, it becomes very important to know whether someone else has taken a loan in your name using your PAN card. Your PAN is directly linked to your credit report, and any loan taken through it, whether with or without your consent, will directly negatively impact your credit rating and your ability to take loans in the future.
How to find out if your PAN card has been ‘misused’
There are some simple and effective ways to detect possible misuse of your PAN card, which you should pay attention to regularly:
1. Check your credit report regularly
The easiest way to know if any loan has been taken against your PAN is to check your credit report. Credit bureaus like CIBIL, Experian, Equifax, and CRIF High Mark keep a record of all the loans and credit cards taken in your name. You can request a free credit report by visiting their website and verifying your PAN and mobile number. Look for any unknown account or loan records in this report. This is your financial ‘kundali’ which gives a complete account of all your credit-related activities.
2. Look for these ‘red flags’ in the report
While checking your report, check for loans or credit cards that you did not apply for.
Wrong account numbers: Account numbers that do not belong to you.
Unknown lender names: Banks or financial institutions you have never dealt with.
New ‘hard inquiries’: (when a lender checks your credit) that you did not allow.
These are signs that someone may have misused your PAN card. If you see several such records, take immediate action to prevent your credit from deteriorating further.
What to do if you receive a fraudulent loan
If you receive a fraudulent loan, it is extremely important to take immediate action:
1. Inform the lender and credit bureaus
Immediately report: Immediately inform the lender from whom the fraudulent loan was taken and the credit bureaus to which it was reported. In most cases, reporting can be done online by the credit bureaus. You will need to provide proof of identity, facts of the loan concerned, and a signed affidavit. This helps verify the fraud.
2. File a complaint with the cybercrime cell
Police complaint: File a complaint with the cybercrime cell of your local police with proof of PAN misuse. This creates a legal record and starts the investigation process. Keep a copy of the FIR (First Information Report) safe with you, as it will help you avoid any legal hassles in the future.
How to prevent misuse of PAN in the future
It is imperative to take certain precautions to prevent misuse of your PAN card:
Never share your PAN card number on unknown sites, apps, or WhatsApp forwards. These may be phishing or identity theft attempts.
Do not give it out in public or to anyone who does not have any immediate business with you.
If you lose your PAN card, apply for a duplicate immediately and check your credit report regularly over the next few months.
Use strong passwords for bank accounts and change them regularly.
Activate SMS/email notifications for loan or credit applications linked to your PAN. This will alert you immediately about any suspicious activity.