How to Protect Your PAN Card From Fraudulent Loans: Key Points to Know

The PAN card has become one of the most important identity documents in India today. Whether it’s opening a bank account, investing in mutual funds, filing income tax returns, or applying for a loan, your PAN is required almost everywhere. Since it is directly linked to your bank accounts and credit profile, any misuse of your PAN card can quickly turn into a serious financial problem. In recent times, cases of PAN card fraud have increased, leaving many innocent people trapped in loan-related troubles they never signed up for.

What is PAN card fraud and why is it risky?

PAN card fraud usually happens when fraudsters misuse someone’s PAN details to take loans from instant loan apps or NBFCs using fake or forged documents. These loans are taken without the PAN holder’s knowledge and are deliberately not repaid. When the lender starts recovery, calls and notices are sent to the PAN card holder, who is legally linked to the loan on paper. If the dues remain unpaid, it can severely damage the person’s credit score, affecting future loan approvals, credit card applications, and even financial credibility.

Common ways fraudsters misuse PAN cards

In many cases, people unknowingly share their PAN details while filling online forms, responding to fake calls, or clicking suspicious links received via SMS or email. Some fraudsters send messages about “instant loan approval” or “pre-approved credit” and trick users into clicking a link or sharing an OTP. Once access is gained, loans are processed within minutes, and the victim realises it only when recovery calls begin.

Smart steps to protect your PAN card

• Protecting your PAN card does not require technical knowledge, just awareness and regular checks.
• Do not share your PAN card with unknown people or platforms. Only provide it to trusted banks, employers, or government-authorised institutions.
• Monitor your credit report every 3 to 6 months. This helps you quickly identify any loan or credit entry that you did not apply for. Early reporting can prevent long-term damage.
• Stay alert to SMS and email alerts. Avoid clicking on unknown links, especially those related to loan approvals or KYC updates. Never share OTPs with anyone, even if the caller claims to be from a bank.
• Digitally lock your PAN card. You can lock or unlock your PAN through the Income Tax Department’s e-filing portal, adding an extra layer of security against misuse.

Why regular monitoring matters

Many people discover PAN misuse only when their credit score drops or a loan application gets rejected. Regular checks and quick action can save you from legal hassles, recovery calls, and financial stress.

In a time when financial fraud is rising, being cautious with your PAN card is no longer optional, it’s essential. A few simple steps today can protect your identity, credit score, and peace of mind in the long run.