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Everything to know about PAN Card fraud

RBL Bank Apr 30, 2025

Can someone withdraw money using my PAN card? Here's how to prevent PAN card fraud.

A PAN card is a crucial document issued by the Government of India, primarily used for taxpayer identification and financial tracking. It is a pre-requisite if you want to open bank accounts, file taxes, and more.

In the past, your PAN number was available only to employers. Today, as your PAN cards are also linked with your Aadhar card and bank accounts, it has become easy for fraudsters to use your PAN card number to commit fraud.

Scammers can commit a PAN Card fraud with you by using its number to take out a loan, rent a hotel room, or purchase jewellery, thereby affecting your credit score. As most individuals do not check their credit score unless they need a loan, these frauds can go unnoticed for long periods.

What is PAN Card Fraud and Its Potential Consequences?

PAN card fraud refers to the unauthorised use of a Permanent Account Number (PAN) card for malicious activities, such as financial transactions, identity theft, and tax evasion. When fraudsters get hold of your PAN card information, they can misuse it in various ways, leading to severe and long-lasting consequences. Financial loss is one of the most immediate impacts, as scammers can take out loans or make purchases in your name. Additionally, your credit score can suffer significantly, making it difficult to secure loans or credit in the future. Legal repercussions may also occur as you may be held accountable for fraudulent activities carried out using your PAN card.

Examples of Misuse of PAN Card Fraud

Everyone irrespective of their social status can be subject to PAN card fraud. The misuse of PAN in the context of identity theft and fraudulent activities is a growing concern. A famous Bollywood actor was a victim of PAN card fraud when their PAN card number was used to take out a loan of INR 2,500. He tagged CIBIL on a social media platform to notify them of the scam, which later went viral. While this is one incident, there have been several others who were affected by PAN card fraud.

In August 2022, a woman from Mumbai was duped of INR 1.24 lakhs when she received a fraudulent link on her mobile phone asking to update her PAN card. When she clicked on the link, fraudsters downloaded a screen-sharing app to gain remote access to her phone and confidential information.

How to protect your PAN Card

To protect your PAN card, follow these best practices:

  • Keep your PAN card information confidential and do not share it with anyone unless necessary.
  • Use strong passwords and two-factor authentication to secure your online accounts.
  • Monitor your credit score regularly to detect any suspicious activity.
  • Avoid using public computers or public Wi-Fi to access your PAN card information.
  • Use a secure internet connection and reputable antivirus software to protect your device from malware.

By following these steps, you can significantly reduce the risk of your PAN card being misused.

Preventing PAN Card Frauds

To prevent PAN card frauds, the Income Tax Department has implemented several measures, including:

  • Verifying PAN card information through the Tax Information Network (TIN) portal.
  • Using advanced technology to detect and prevent fraudulent activities.
  • Providing education and awareness programmes to taxpayers on PAN card security.
  • Collaborating with financial institutions and law enforcement agencies to prevent and investigate PAN card frauds.

Additionally, individuals can take steps to prevent PAN card frauds by:

  • Being cautious when sharing their PAN card information online or offline.
  • Regularly checking their credit score and bank statements for suspicious activity.
  • Reporting any suspicious activity to the Income Tax Department and law enforcement agencies.
  • Using strong passwords and two-factor authentication to secure their online accounts.

By understanding the risks associated with PAN card fraud and taking necessary precautions, individuals can protect their PAN card information and prevent financial loss and identity theft.

How to Check PAN Card Fraud

Unlike other financial frauds, PAN card fraud is not immediately known. For instance, in the case of UPI fraud, money is deducted from the bank account. With the help of a bank alert, customers can know they have fallen victim to an online scam. In the case of PAN card fraud, the credit score gets affected if someone takes out a loan under your name. Consequently, you will be subject to a higher interest rate when you approach a bank to get a loan. The damage is already done when you unearth the reason for a poor credit score.

Here are two simple options to check if your PAN number is used to commit fraud.

Option 1 - Checking Credit Score

Various bureaus like CIBIL, Experian, Equifax, or CRIF High Mark can be used to check your credit score. A PAN card is an important financial and identification tool in India and monitoring your credit score can help detect any misuse or fraudulent activities associated with it. These websites can be used to check credit scores at any time, free of cost. However, if you want a detailed score and breakdown of all the details, you can subscribe to their premium membership. Create an account with your basic information to get your current credit score and to check if anything suspicious is happening.

Option 2 - Form 26A

Form 26A is an annual tax statement issued by the Income Tax Department. The growing concern of PAN card misuse has made it essential to understand the steps to file complaints about such misuse. It contains all the information about tax deducted at source (TDS), taxes you paid, refunds received, and other tax-related information. Since this is based on your PAN, it also contains information about high-value financial transactions, including corporate bonds or mutual funds purchases. With this form, you can also verify if the PAN number has been used by anyone else. The form can be downloaded from the TRACES website or via the net banking service of your bank.

How to Report PAN Card Fraud

Using TIN NSDL

You can use NSDL website to file your complaint. Here is how you do it.

  • Step 1: Visit the official portal of TIN NSDL and select 'Customer Care' from the menu options
  • Step 2: Click on "Complaints/Queries" from the drop-down list. It will open a complaint form.
  • Step 3: Fill out this complaint form with all the relevant details and click "Submit."

Here are a few simple ways to be vigilant and protect yourself from PAN card fraud.

  • Use your PAN card only where it is mandatory. Instead, use driver's licences or voter ID.
  • To make yourself less prone to fraud, do not fill in personal details such as birthdate or full name on unknown online portals, as they can be leveraged to track the PAN card number.
  • If you must take photocopies of your PAN card, ensure no extra copies are taken or left behind at the centre. Also, it is important to sign and date all copies to ensure it is not misused.
  • Check your financial history for the year with Form 26A. This form holds all the transactions performed using your PAN number. If there are any discrepancies, they can be easily verified.
  • Check your credit score using the CIBIL website from time to time to ensure no credit card or loans that are open under your name that you are not aware of.
  • Delete PAN card details from your phone.

While Digital India continues to rise, one needs to be aware of not falling victim to PAN card frauds. Like any other fraud, being vigilant and informed can be beneficial to a large extent.

National Cybercrime Reporting Portal
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Click here to learn more about various types of fraud and how to protect yourself.

Disclaimer:
Articles published on the website are merely indicative and suggestive in nature and do not amount to solicitation. The contents do not guarantee the desired returns and/or results. Reader is advised to exercise discretion and consult independent advisors for achieving desired result.

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