How to Identify PAN Card Fraud and Report Misuse

Your PAN card is more than just an identification tool—it's a vital key to financial transactions, tax records, and identity verification in India. However, with the rise of digital transactions and online identities, PAN card fraud is becoming an increasingly common threat. From unauthorised transactions to identity theft, the consequences of PAN card misuse can be severe. 

In this blog, we will explore the risks of PAN card fraud, how to check for potential misuse, and steps you can take to protect yourself from falling victim to a PAN card scam.

What is PAN Card Fraud and its Potential Consequences?

PAN card fraud occurs when someone illegally uses your PAN card details for fraudulent or criminal activities, often to open fake bank accounts, apply for loans or credit cards, purchase jewellery, carry out illegal transactions or evade taxes. The misuse of a PAN card can lead to significant financial and legal consequences, including tax liabilities, credit score damage, and reputational harm.

For instance, imagine receiving a notification from your bank or the tax department about transactions or loans you never authorized. This is the harsh reality many experience when their PAN card is misused for scams or fraudulent activities.

Real Examples of PAN Card Fraud cases 

Online PAN card fraud is on the rise, with scammers increasingly using SMS, phone calls, and emails to trick individuals into sharing their PAN details. Falling victim to such scams can result in severe consequences, including financial losses and potential legal issues for the victim

Here are some common types of PAN card scams: 

1. Fake bank accounts: Fraudsters steal PAN card details to open fake bank accounts, which have been used for illegal purposes such as money laundering or tax evasion. For example– A man discovered multiple bank accounts were opened in his name without his knowledge, leading to months of legal battles as he tried to clear his name.

2. Unauthorised loans: Scammers are using PAN card details to apply for loans, leaving the PAN card holders responsible for repayments on loans they never took. For instance, a woman was shocked to find a loan of ₹8 lakh taken out in her name using stolen PAN card details, resulting in months of stress to rectify the situation.

3. Tax evasion: PAN cards are sometimes used by fraudsters to create fake identities and evade taxes. If your PAN is involved in such scams, you could face tax penalties.

4. Phishing attacks: You might receive an SMS prompting you to update your PAN details. These messages often include a link that directs you to a fraudulent site. Once you enter the required OTP, you could unknowingly give scammers access to your account, resulting in financial loss.

 How to Check for PAN Card Misuse (Step-by-Step Guide) 

If you suspect your PAN card has been misused, follow these steps for a PAN card misuse check:

A. Visit the Income Tax website

1. Visit the Income Tax e-Filing Website and log in using your credentials.

2. Access Your 26AS Tax Credit Statement: This document provides a detailed list of all financial transactions linked to your PAN.

3. Review Transactions Carefully: Go through each entry and ensure that no unauthorised transactions have occurred.

4. Contact Financial Institutions: If you find suspicious activities, immediately report them to your bank or the respective institution.

B. Keeping an eye out for your Credit Score

Step 1: Visit the website of your preferred credit bureau to check your credit score.

Step 2: Fill in the necessary details, including your financial and personal information.

Step 3: Enter the OTP sent to your registered mobile number and click on ‘Verify’.

Step 4: Your credit score will appear on the screen. Review it to determine if there are any signs of PAN card misuse.

Other PAN card misuse checks you can undertake:

1. Monitoring your bank statements: Check for unauthorised transactions or accounts that may have been opened in your name.
2. Watch for alerts from banks or tax authorities: Stay alert to notifications or warnings regarding unusual or suspicious activities.
3. Be cautious with unexpected communications: If you receive unexpected messages from financial institutions or tax authorities about activities you didn’t authorize, investigate them immediately.

Performing regular checks can help you identify and respond quickly to any PAN card misuse before the problem escalates.

How to Complain about PAN Card Fraud

If you become a victim of PAN card fraud, act quickly by following these steps to file a PAN card fraud report:

1. File a complaint with the Income Tax Department: Use the official portal to report any misuse of your PAN card. You can report PAN card misuse both online and offline. To do it online, visit the Income Tax Department’s website and file a grievance through their e-filing portal. For offline reporting, write to your jurisdictional Assessing Officer (AO), detailing the misuse and attaching a copy of your FIR for reference.

2. Contact your bank or financial Institution: If fraudulent transactions have occurred, notify your bank and freeze any related accounts to prevent further misuse.

3. Lodge a police FIR: File a First Information Report (FIR) at your local police station to document the fraud legally.

4. Submit a complaint to the consumer forum: This can ensure that your case receives appropriate attention from the authorities.

Filing a PAN card fraud report promptly will help mitigate any financial damage and speed up the resolution process.

How to Avoid PAN Card Frauds 

Preventing PAN card misuse starts with safeguarding your information. Here are some actionable steps to protect your PAN card from scams:

1. Be selective when sharing PAN information: Only provide your PAN card details to trusted and verified entities. Always verify why the information is needed. Avoid entering your full name and date of birth on untrusted online portals or application forms, as this information can be used to easily track and misuse your PAN card. 
2. Regularly monitor financial statements: Keep an eye on your bank, credit card, and tax statements to spot any unauthorized transactions early on.
3. Use PAN verification services for major transactions: When dealing with large financial transactions, use official services to verify the other party’s PAN card.
4. Secure Your PAN Card: Avoid carrying your PAN card unless necessary and store digital copies in encrypted formats to prevent unauthorized access.
5. Use Only Secure Websites: When submitting your PAN card details online, ensure the website is secure by checking for ‘https’ in the URL to avoid phishing scams.
6. Report Lost or Stolen PAN Cards Immediately: If your PAN card is lost or stolen, report it right away to prevent potential misuse.
7. Encrypt Sensitive Documents: Encrypt digital copies of your PAN card and other personal documents to secure them from cyberattacks.

Your PAN card is a critical piece of your financial identity, and PAN card fraud can have severe consequences. Whether it's a PAN card misuse check, filing a PAN card fraud report, or simply safeguarding your details, staying vigilant is key to avoiding a PAN card scam. By taking proactive steps to monitor and protect your PAN, you can prevent fraudsters from causing financial and legal problems in your life.