Imagine checking your credit report and discovering a loan in your name. A loan you never applied for... It would feel as if the loan had been imposed on you without your even having applied. This would leave you responsible for repaying the entire loan. This isn't just an idea; it's happening. This kind of PAN-related loan fraud isn't an isolated incident affecting just one or two people; rather, millions of people across the country have fallen victim to such scams. As the use of technology has increased, so too have cyber threats. Fraudsters have now begun experimenting with a new method: using ordinary people's PAN cards and Aadhaar cards.

In effect, scammers use stolen PAN details to obtain loans in people's names without their knowledge or consent. The growing trend of digital lending and instant loan approvals allows scammers to exploit the verification system. As a result, victims' credit scores are being damaged and they are constantly receiving recovery calls.

How is fraud committed using a PAN card?
Fraudsters don't rely solely on PAN details; instead, they combine this information with other details like Aadhaar number, mobile number, and date of birth to create a fake identity. They often collect this information through data leaks, phishing links, or fake applications that mimic the real service. Using these fake identities, scammers easily apply for loans and get them approved without the real person knowing.

How to stay safe?

According to a report in The Economic Times, if you suspect your PAN card has been misused, the most important thing is to always check your credit report. Credit bureaus like TransUnion CIBIL, Experian, Equifax, and CRIF High Mark allow you to view your report and monitor it for any suspicious activity.

If you see an unknown loan, an inquiry from an unknown lender, or an account you don't recognize on your credit report, this is an early warning that your PAN card is being misused. In such a situation, you need to take immediate action. If you receive a fraudulent loan, you should first contact the lender and report the fraud. Then, ask for all KYC documents and verify them.

Then, file a complaint on the National Cybercrime Reporting Portal and file an FIR with the local police or cyber cell. Additionally, inform credit bureaus like TransUnion CIBIL to flag the account as a fraud account. Also, secure your bank account and passwords, and turn on alerts to prevent further misuse. If a complaint is filed in a timely manner, the law always sides with the consumer.

PC: Navarastra