PAN card fraud: Types of PAN card scam and preventions

PAN card fraud: Types of PAN card scam and preventions

Know about the types of PAN card fraud and how you can safeguard against them.

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Most of your financial transactions need your PAN card as one of the crucial documents for identification. A Permanent Account Number (PAN) is a ten-digit unique alphanumeric code issued by the Income Tax Department to identify the country's income tax payers. As a result, regardless of its tax payment function, it serves as identification proof.

You can also open a bank account or demat account or obtain a loan or purchase RBI bonds or insurance with the help of PAN card.

Lately, there has been a surge in PAN card frauds, leaving individuals vulnerable to identity theft and financial losses. Hence, it is of utmost importance to be aware of the various possible misuses of the PAN card and how you can prevent it.

How to check if someone is using your PAN card

You can check if someone is using your PAN card by checking your CIBIL score or credit score. It is the best way to know if any unauthorised loans have been taken under your name.

Here’s how you can check your credit score.

  1. Various bureaus or financial companies like TransUnion CIBIL, Equifax, Experian or CRIF High Mark offer the facility to check the score.

  2. You can visit their official website and search for ‘Check your credit score’ facility. Some websites offer it for free, while a few may charge.

  3. Enter your personal details like date of birth, name, email ID, mobile number and PAN. You may receive OTP code on your mobile number for verification.

  4. Following which, you will be able to access your credit score and know if your lost PAN card has been misused or not.

PAN card scams you should beware of:

Here are some of the several methods by which perpetrators might misuse a PAN card:

  • Applying for credit cards or loans

    Fraudsters can use your PAN information to avail of credit cards or loans and finance illicit practices. However, the responsibility will fall squarely on the victim, and they will be accountable for repaying debts and facing legal ramifications.

  • Illegal jewellery purchase

    In India, buying jewellery over a particular threshold necessitates submitting PAN data. Hence, scammers can misuse the victim's PAN to purchase expensive jewellery, and the income tax department will summon the victim to face the consequences.

  • Renting hotel rooms and vehicles

    While checking into a hotel room in India, you must submit your identity proof. Scammers generally enter identity details from stolen PAN cards to hide their identity. If any illegal event happens in these hotel rooms, authorities reach out to the person’s registered ID, and this proof is generally hoaxed or spoofed.

    A similar example of PAN card misuse is renting a car in your name and using it for trafficking, smuggling, and other illegal activities.

    Thus, it is important to understand the significance of PAN card and how you can safeguard your personal details.

Tips to avoid falling prey to PAN card fraud

To prevent PAN card fraud, follow these guidelines:

  • Before entering PAN on websites, check the site’s authenticity by looking for an 'HTTPS' prefix in the URL, which indicates that the site has an SSL certification and is safe to transact on.

  • When providing PAN card photocopies, self-attest them by signing, writing the date, and mentioning the reason for submission.

  • Avoid providing full names and birth dates on suspicious websites.

  • Frequently check credit scores and notify regulating authorities of any discrepancies.

  • Delete PAN details or personal information saved on any mobile device.

Reporting misuse of your PAN card?

Now that you know about the various PAN card frauds, and how you can prevent them, you must also be aware of how to raise a PAN card misuse complaint, if required.

The central government has established an electronic website called Aayakar Sampark Kendra where you can file PAN grievances. Here are the steps to report the misuse of PAN card.

  1. Visit the official website of TIN NSDL and search ‘customer care’ section on the home page.

  2. On clicking the ‘customer care’, you will be find ‘complaints/queries’ tab on the drop-down menu.

  3. Click on the tab to open a complaint form.

  4. Enter your personal details and describe the nature of the complaint. By entering the Captcha code, you can submit the form.

  5. Your complaint will be registered.

However, as a smart precautionary measure, you can choose to purchase the Wallet Care plan through Bajaj Finance to secure your valuables. In case you lose your PAN card to theft, you can avail of the replacement benefit to get your PAN card replaced for free.

Disclaimer

Insurance is the subject matter of solicitation. Bajaj Finance Limited (‘BFL’) is a registered corporate agent of third party insurance products of Bajaj Allianz Life Insurance Company Limited, HDFC Life Insurance Company Limited, Future Generali Life Insurance Company Limited, Bajaj Allianz General Insurance Company Limited, SBI General Insurance Company Limited, ACKO General Insurance Limited, Niva Bupa Health Insurance Company Limited , Aditya Birla Health Insurance Company Limited and ManipalCigna Health Insurance Company Limited under the IRDAI composite CA registration number CA0101. Please note that, BFL does not underwrite the risk or act as an insurer. Your purchase of an insurance product is purely on a voluntary basis after your exercise of an independent due diligence on the suitability, viability of any insurance product. Any decision to purchase insurance product is solely at your own risk and responsibility and BFL shall not be liable for any loss or damage that any person may suffer, whether directly or indirectly. Please refer insurer's website for Policy Wordings. For more details on risk factors, terms and conditions and exclusions please read the product sales brochure carefully before concluding a sale. Tax benefits applicable if any, will be as per the prevailing tax laws. Tax laws are subject to change. Visitors are hereby informed that their information submitted on the website may be shared with insurers. BFL is also a distributor of other third party products from Assistance Services providers such as CPP Assistance Services Pvt Ltd, etc. All product information such as premium, benefits, exclusions, sum insured, value added services, etc. are authentic and solely based on the information received from the respective insurance company or the respective value added service provider or Assistance company.

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