How to check if your PAN was misused for loans
What's the story
In India, the Permanent Account Number (PAN) card is a key identifier for financial transactions. It connects income, investments, bank accounts, and also loans to a single identity. While this central role makes PAN essential for tax compliance and financial transparency, it also makes it a target for fraudsters. Scammers can misuse just a copy of the card to open bank accounts or apply for loans without the owner's knowledge.
Fraud impact
Unauthorized loans: A hidden consequence of PAN misuse
The unauthorized use of PAN cards often comes to light when victims receive recovery calls, credit score alerts, or tax notices for transactions they never made. Many cases have been reported where victims complained about unauthorized loans taken in their name, severely impacting their financial health. This highlights the need for individuals to regularly check their credit reports and be aware of any unfamiliar accounts or loans that could indicate fraud.
Verification process
How to check for unauthorized loans using your PAN
To check if your PAN has been misused, you can generate a credit report from official credit bureaus such as CIBIL, Equifax, Experian, or CRIF High Mark. Just enter your PAN and other basic details on these websites to download your free annual credit report (each bureau offers one free report per year). Alternatively, you can use fintech platforms like Paytm or Bank Bazaar for financial reports.
Fraud indicators
What to look for in your credit report
Your credit report will show all active loans and credit cards in your name. Look for loan amounts, lenders, and their repayment status. Unfamiliar accounts or loans could indicate fraud. If accounts are opened in cities you've never lived in, that's also a red flag. A sudden drop in your credit score can also be a strong warning of possible fraud related to unauthorized loans taken under your name using your PAN details.
Prevention tips
Safeguarding against PAN misuse
To protect yourself from such fraud, never share your PAN details on unsecured websites/with unknown agents. Regularly check your credit report and generate your credit scores at least twice a year to look for red flags. You can also enable SMS and email alerts for loan approvals with your bank. These precautions can help you stay alert and prevent unauthorized loans from being taken using your PAN details.