PAN Card Scam Alert: Protect Your PAN or Risk Becoming a Loan Defaulter, Know How

PAN Card: Big news for PAN Card holders. In today’s digital world, your PAN card has evolved beyond being just a tax document. It plays a crucial role in every financial activity, whether it’s opening a bank account, securing a loan, or making investments. However, this convenience can also lead to significant issues. Recently, there has been an alarming increase in cases of PAN card fraud, with individuals unknowingly falling into debt traps.

How is the trap set?

Cybercriminals are quite clever in their tactics. They often acquire your PAN number and other personal details through data breaches, insecure websites, or enticing phishing links. Once they have your PAN number, they can use it to secure loans from online lending apps or platforms that require minimal documentation. The digital KYC process on many online platforms is so swift that criminals can easily obtain loans using false identities, leaving the genuine owner completely unaware.

When your credit score takes a hit, you realize something is wrong.

The most alarming aspect of PAN fraud is that it often goes unnoticed for a long time. Unlike bank frauds that typically trigger immediate alerts, PAN fraud can operate quietly in the background. When fraudsters take out loans and fail to repay the EMIs, your CIBIL report starts to deteriorate.

People usually find out about this fraud when:

* They apply for a loan or credit card and are rejected by the bank, labeled as ‘defaulters’.

* Their credit score unexpectedly drops without any clear reason.

* They start receiving calls from recovery agents.

How can you protect yourself?

Experts advise that staying alert is your best defense. To safeguard your PAN card, keep the following tips in mind:

1. Regularly review your credit report: Check your credit report every 3-4 months to ensure there are no loan accounts that you did not open.

2. Secure your documents: Before sharing a photocopy of your PAN card, write the purpose (e.g., “Only for KYC at XYZ Bank”) on it and sign it.

3. Steer clear of unsafe apps: Avoid uploading your personal information or documents to any unfamiliar app.

What should you do if you become a victim?

If you find out that you have fallen victim to PAN fraud, take immediate action.

What to do if you in trouble?

If you discover that a fraudulent loan has been taken out in your name, immediately file a written complaint with the relevant bank or NBFC. Also, dispute the entry on a credit bureau website like CIBIL. Also, file a complaint with the National Cyber ​​Crime Portal (1930) to ensure you are legally protected.