PAN Card Fraud Exposed– How Scammers Drain Money Using Your Details

PAN cards, once a simple tool for tax compliance, have become a key target for cybercriminals looking to exploit India’s digital financial ecosystem. Increasingly, fraudsters are misusing PAN details to secure loans and credit in victims’ names, leaving unsuspecting individuals with debt and damaged credit scores. As digital transactions and online loans gain popularity, understanding the methods of PAN card misuse and taking proactive steps to safeguard your financial identity has never been more critical.

How PAN Card Fraud Occurs

Cybercriminals employ multiple tactics to access PAN details. Fake calls and SMS messages claiming to be about KYC updates are a common ploy. Fraudsters also trick users into uploading PAN cards on bogus loan apps or fraudulent websites. Social media shares of PAN images and data leaks from old records further expose sensitive information. Once in possession of your PAN, scammers can easily obtain digital loans from non-banking financial companies (NBFCs) and other platforms, while the borrower faces the consequences.

Warning Signs of PAN Misuse

Being vigilant is essential to detect fraud early. Key warning signals include unexpected messages or emails about loans or EMIs, calls from banks or recovery agents, sudden drops in your credit score, and unfamiliar loan accounts appearing in your CIBIL or Experian reports. Recognising these signs promptly can help mitigate the damage and allow you to take corrective action before your creditworthiness suffers.

Common Mistakes That Enable Fraud

Many victims unknowingly compromise their PAN by clicking on suspicious links, posting PAN card images online, downloading unverified loan apps, or responding to calls threatening account closure due to KYC issues. These seemingly minor oversights can provide fraudsters with all the information needed to exploit your identity financially.

Steps to Prevent PAN Card Fraud

Protecting your PAN requires simple yet effective precautions. Never share copies or images of your PAN with unknown sources. Only apply for loans through RBI-registered banks or NBFCs. Avoid unverified apps and websites, and regularly review your credit report every three to six months. Setting up credit alerts or freezing your credit report with CIBIL can provide an extra layer of protection. Always verify KYC-related calls and messages via official bank websites.

Actions to Take If Your PAN Is Misused

If a loan is fraudulently obtained in your name, act quickly. Submit a written complaint to the concerned bank or NBFC, report the incident as a cybercrime at cybercrime.gov.in, and dispute the loan with CIBIL or Experian. Filing an FIR at your local police station may also be necessary to protect your credit score and financial reputation. Prompt action can minimise long-term consequences and prevent further misuse of your PAN.

With cybercrime on the rise, safeguarding your PAN card has become essential for protecting your financial identity. Being aware of common fraud tactics, regularly monitoring your credit, and exercising caution in sharing personal information can significantly reduce the risk of falling victim to PAN card scams.