COURTKUTCHEHRY SPECIAL ON RULES TO CHECK YOUR PAN MISUSE
PAN Card Misuse Rising: How to Detect Unauthorized Loans and Protect Your Identity
Identity Theft Using PAN Details Becomes a Growing Financial Risk
Simple Steps for Citizens to Check, Report, and Safeguard Their PAN
By Our Legal Reporter
New Delhi: December 30, 2025:
The Permanent Account Number (PAN) card is one of the most critical identity documents in India. It links an individual’s income, tax filings, bank accounts, and loans to a single identifier. However, this central role also makes PAN a prime target for fraudsters. Recent reports show that scammers are misusing PAN details to take unauthorized loans, open fake accounts, and commit financial fraud.
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This article explains how PAN misuse happens, what steps citizens can take to detect unauthorized loans, and how to safeguard against identity theft.
How PAN Misuse Happens
- Data Breaches: PAN details leaked from financial institutions or online platforms.
- Fake Loan Applications: Fraudsters use stolen PAN to apply for loans with NBFCs or digital lenders.
- Account Opening Fraud: PAN used to open bank accounts for money laundering.
- Credit Card Fraud: Unauthorized credit cards issued in victim’s name.
Because PAN is linked to all financial transactions, misuse can damage a person’s credit score, tax compliance, and financial reputation.
How to Check If Your PAN Has Been Misused
1. Check Credit Reports
- Obtain reports from CIBIL, Experian, Equifax, and CRIF Highmark.
- Look for unknown loans, credit cards, or inquiries.
- Each bureau allows one free report per year.
2. Use Income Tax Portal
- Log in to the Income Tax e-filing portal.
- Check “Outstanding Demand” and “AIS (Annual Information Statement)” for unknown transactions.
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3. Check Loan Status Online
- Many banks and NBFCs allow PAN-based loan status checks.
- Use official websites to verify if loans exist under your PAN.
4. Monitor SMS and Email Alerts
- RBI mandates lenders to send alerts for loan approvals.
- Any suspicious message should be investigated immediately.
What To Do If You Find Unauthorized Loans
- Report to Credit Bureau: Raise a dispute with CIBIL or other bureaus.
- Inform the Lender: Contact the bank/NBFC that issued the loan.
- File a Police Complaint: Register an FIR for identity theft.
- Alert RBI Ombudsman: Escalate if lender does not act.
- Update PAN Records: Ensure your PAN is not linked to fraudulent accounts.
Why These Steps Are Important
- Protect Credit Score: Unauthorized loans can reduce your score, affecting future borrowing.
- Avoid Legal Trouble: Fraudulent loans may lead to recovery notices.
- Maintain Tax Compliance: PAN misuse can distort your income records.
- Prevent Financial Loss: Early detection stops fraud before it escalates.
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Broader Context
- Digital Lending Boom: Rise of instant loans has increased fraud risks.
- Identity Theft Cases Rising: Police in major cities report growing complaints of PAN misuse.
- Regulatory Push: RBI and SEBI are tightening KYC norms to prevent misuse.
Expert Views
- Cybersecurity Analysts: Recommend citizens regularly check credit reports.
- Banking Experts: Stress importance of PAN-Aadhaar linking to reduce fraud.
- Legal Experts: Advise filing police complaints immediately to protect legal rights.
Conclusion
PAN misuse is a growing threat in India’s digital financial ecosystem. Citizens must be proactive: check credit reports, monitor PAN-linked transactions, and report suspicious activity immediately.
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