PAN Card Security: Big update for PAN Card holders. In today’s digital age, the PAN card is no longer just a tax filing document; it has become a vital part of your identity. However, many fraudsters are misusing this identity to obtain fraudulent loans. Recently, several such cases have come to light where people only discovered their identity when their credit scores suddenly dropped or they began receiving recovery calls from their banks.

Experts say that fraudsters misuse PAN card details to submit fraudulent applications on online loan apps or NBFC platforms. Since the PAN card is linked to your Aadhaar and bank account, misuse directly impacts your financial standing.

How is PAN misused?

– Fraudsters obtain a copy or number of your PAN.

– Submitting loan applications with fake documents.

– When the loan is approved, they withdraw the money and do not pay it.

– Result—Recovery notice is issued in your name and credit score drops.

Preventive measures:

1. Avoid sharing PAN – Give it only to trusted institutions.

2. Check credit report – Check the report from CIBIL or other bureaus every 3-6 months.

3. Pay attention to email/SMS alerts – Do not ignore any unknown loan approval or transaction alerts.

4. Digitally lock PAN – Visit the Income Tax Department’s e-filing site and use the ‘PAN Lock/Unlock’ facility.

5. Report fraud – If PAN is misused, immediately report it to the police and the concerned NBFC.

Suppose an employee named Reena suddenly discovered that a loan of ₹2 lakh had been approved in her name. Investigation revealed that someone had used a copy of her PAN. Reena immediately complained to the credit bureau, had her PAN locked, and filed a police complaint. Within a few weeks, her record was cleared.