PAN card fraud - How to identify PAN card fraud and report misuse

In today's digital age, your permanent account number (PAN) card is more than just a tax document. It's a critical financial identifier that criminals increasingly target. PAN card misuse can have devastating consequences on your financial health and credit history.

With the rising incidence of identity theft in India, understanding how to identify and report PAN card fraud has become essential for every taxpayer.

This article provides comprehensive guidance on detecting PAN card fraud, reporting misuse, and implementing preventive measures to safeguard your financial identity.

What is PAN card fraud?

PAN card fraud occurs when someone unauthorised uses your PAN details for criminal activities or to impersonate you. It involves the unauthorised use of an individual's PAN to engage in illicit activities like:

• Identity theft
• Creating unauthorised bank accounts
• Securing fraudulent loans
• Executing illegal transactions
• Filing false tax returns

In worst-case scenarios, criminals can exploit your PAN for serious financial crimes, potentially leading to severe financial losses and legal complications for you as the legitimate PAN holder. Checking PAN card misuse is crucial because you might be held accountable for activities you never authorised or conducted.

How to check if someone has misused your PAN card?

Detecting PAN card misuse early can save you from significant financial and legal troubles. Here's how to conduct a thorough PAN card misuse check:

• Check your credit score: Visit a credit bureau website, search for the option to check your credit score, and enter your financial information to review your credit report. Any unexpected dips or unfamiliar credit activities could indicate potential fraud.
• Review Form 26AS: This tax credit statement shows all transactions linked to your PAN. Unfamiliar entries could suggest misuse.
• Monitor financial statements: Regularly review bank statements, credit card bills, and investment accounts for suspicious transactions.
• Track tax notices: Unexpected tax notices or demands might indicate someone has used your PAN for undisclosed transactions.
• Check for unauthorised loans: Verify if any loans have been taken in your name.

Ways in which PAN card fraud can occur

Here's how instances of PAN card misuse can occur:

• PAN card fraud: manifests in numerous ways, and awareness is your first line of defence:
• Fraudulent loan applications: Criminals may use your PAN to apply for loans, and you will be responsible for repayment.
• Unauthorised bank accounts: Opening bank accounts with stolen PAN details for conducting fraudulent transactions.
• Phishing scams: Sending an SMS asking to update the PAN and using links to extract OTPs to steal money.
• Credit card fraud: Cybercriminals have been known to obtain credit cards issued in others' names using their PAN details.
• High-value purchases: Illegally purchasing jewellery or other high-value items using a misused PAN.
• Rental fraud: Renting hotel rooms or vehicles with a misused PAN.
• Tax evasion: Filing false tax returns using someone else's PAN to evade taxes or claim fraudulent refunds.

How to report misuse of PAN card?

If you suspect your PAN has been misused, prompt action is crucial. Here's how to file a PAN card fraud report:

1. Tax Information Network portal

• Visit the official Tax Information Network portal.
• Select 'Customer Care' in the top right corner.
• Choose 'Complaints/Queries' from the drop-down menu.
• Complete the complaint form with your details.
• Clearly describe the suspected fraud.
• Enter the captcha and submit your complaint.

2. Income Tax Department

• Visit the official Aayakar Sampark Kendra (ASK) portal developed by the Income Tax Department.
• File a detailed grievance regarding PAN misuse.
• Provide all relevant documentation to support your claim.

3. File a police complaint

• Report the fraud at your local police station.
• Obtain a copy of the First Information Report (FIR).
• Share this FIR with relevant financial institutions.

4. Notify financial institutions

• Alert banks, credit card companies, and other financial institutions where you hold accounts.
• Request additional security measures on your accounts.

How to prevent PAN card fraud?

Prevention is always better than cure when it comes to PAN card fraud:

• Verify website security: Before entering PAN details online, ensure the URL begins with 'https'—the 's' indicates a secure, encrypted site.
• Attest photocopies: When submitting PAN photocopies, always attest them with the reason for submission.
• Protect personal information: Avoid entering your full name and date of birth on suspicious websites.
• Regular monitoring: Track your credit score periodically and check Form 26AS for PAN-linked transactions.
• Secure PAN details: Keep your PAN card and details in a safe, secure location.
• Selective sharing: When possible, use alternative IDs like voter ID, Aadhaar, or driver's licence instead of sharing PAN details.
• Track submissions: Only submit PAN photocopies to authorised companies, sign and date them, and keep track of where they're submitted.
• Delink when necessary: Delink your bank account and Aadhaar when unnecessary, as it's no longer a government mandate.
• Phone security: Keep PAN information confidential on your phone and avoid sharing it over unsecured calls.

With Axis Bank, you can easily update your PAN in your bank account to ensure all your financial records are accurate and up-to-date. You can update your PAN details securely through multiple convenient channels, including internet banking, SMS, mobile app, and branch visit.

Also Read: PAN Aadhaar link penalty - Recent updates & fines

Conclusion

PAN card misuse can have serious financial and legal implications if not detected and addressed promptly.

By implementing regular PAN card misuse check routines, understanding the various forms of PAN card fraud, and knowing how to file a PAN card fraud report, you can significantly reduce your risk of becoming a victim.

Remember that vigilance is your best defence—regularly monitor your financial statements, credit score, and tax documents for any unusual activities.

Frequently Asked Questions

Can a PAN card be faked?

Yes, unfortunately, sophisticated fraudsters can fake PAN cards. Criminals may create counterfeit PAN cards using stolen information or manipulate existing cards through digital editing. These fake cards often look remarkably similar to genuine ones, making them difficult to detect without careful scrutiny.

What information can we get from a PAN card?

A PAN card contains several key pieces of information, including the individual's full name, photograph, date of birth, father's name, signature, and the unique 10-character alphanumeric PAN number. This information serves as a critical financial identifier and is used for various financial and tax-related transactions in India.

Disclaimer:This article is intended solely for informational purposes. The views expressed in this article are personal. Axis Bank and/or the author shall not be liable for any direct or indirect loss or liability incurred by the reader arising from reliance on the content herein. Readers are advised to consult a qualified financial advisor before making any financial decisions. Axis Bank does not endorse or guarantee the accuracy of any third-party content or links included in this article.