PAN Card Scams: Smart Ways to Prevent Identity Theft

Your PAN card is one of the most vital identity documents in India, essential for banking, filing taxes, applying for loans, and more. But as digital exposure increases, it has also become a prime target for fraudsters. According to a 2025 report by U.S. cybersecurity firm Entrust, India’s PAN card is now the most-forged identity document globally, appearing in over 27% all identity and tax document fraud cases. This alarming trend highlights the urgent need for awareness and protection.

In this blog, we'll discuss what PAN card fraud is, how it happens, prevalent frauds, and how to protect yourself from them.

How Do PAN Card Frauds Happen?

PAN card scams occur in various ways; however, most rely on tricking people into sharing their personal and confidential information. Here is how it usually happens:

• Phishing and Fake Sites: Spammers create fake websites that mimic genuine TIN, NSDL, or Income Tax Department websites. They request that you "verify your PAN card details" or "update your email ID" via a drop-down menu and a captcha code. With this, they can easily get your personal information.

• Lost or Stolen PAN Cards: If your PAN card is misplaced, it can fall into the wrong hands. Scammers may misuse your PAN number for fraudulent activities, such as applying for loans in your name.

• Leaked Personal Details: Submitting your personal data, mobile number, or PAN details on illegal or unsafe/unverified websites can result in identity theft.

• PAN Misuse by Third Parties: Brokers or agents sometimes request PAN information when filing income tax returns, opening bank accounts, or applying for loans. They can misuse it later, resulting in significant financial losses.

• Data Breaches: Large-scale data breaches at financial institutions or government websites can expose your PAN number, date of birth, and bank account information.

Common PAN Card Scams/Frauds in India

Here are some of the most common PAN Card scams in India that you must be aware of:

1. Loan and Credit Fraud

Scammers use a fake or stolen PAN card number to obtain loans and credit cards in your name. Victims often remain unaware until the bank contacts them about unpaid loans or a drop in their credit score.

2. Fake PAN Card Creation

Using advanced photo-editing software, fraudsters create fake PAN card photos and sell them to other criminals for illegal purposes. It can be for tasks such as opening bank accounts or booking hotel rooms. Government officers themselves get duped by such fake PAN card numbers, which may look real.

3. PAN Used for Shell Companies

Some fraudsters use stolen PAN cards to form fake companies in your name and identity to avoid paying taxes and to launder money. They make fake payments using another person's permanent account number, making it difficult for the police to find the real criminals.

4. Online Phishing Scams

Many scammers impersonate the Income Tax Department or TIN NSDL, sending emails or messages asking you to "verify" your PAN card. This will be done through a link or a captcha. However, those links are not real and will lead you to phishing sites that steal your sensitive information.

5. Misuse of PAN in Employment or Rentals

Most people submit their PAN card for job verification or when booking hotel rooms. However, some brokers misuse this PAN information for fraudulent activities, leading to severe identity theft issues.

Steps to Follow if You Suspect PAN Card Fraud?

If you suspect your PAN card has been used fraudulently, do not worry. Here are the steps to follow:

• Check Your Credit Report: Visit the websites of credit bureaus such as CIBIL, Experian, or CRIF High Mark to obtain your most recent credit report. You can also check your credit report for free with third-party websites, such as Poonawalla Fincorp. Check for any loans or credit cards you are not aware of.

• Complain to the Income Tax Department: Go to the official income tax website and file a complaint about PAN misuse.

• Make a Complaint to the Police: Go to the nearest police station and file an FIR against PAN card abuse or identity theft. Ensure to keep a copy of the report with you.

• Report to Your Bank: If your bank account is involved, let your bank know immediately.

How to Prevent PAN Card Frauds and Scams?

Here are some effective ways to prevent PAN card fraud and scams:

• Don't Share PAN Details: Never share your PAN number, mobile number, or email ID with unverified individuals. Verify the website or recipient before sharing any information.

• Store Your PAN Card Safely: Store your PAN card in a safe location and don't carry it unless necessary to reduce the risk of theft.

• Use Secure Passwords: Use strong, unique passwords to prevent unauthorised access to your bank account, UPI, or other financial accounts.

• Avoid Public Wi-Fi: Public Wi-Fi can be unsafe; avoid using it for financial transactions to prevent your data from being stolen.

• Report Immediately: If your PAN card is stolen or lost, report it immediately to prevent misuse and enable authorities to take prompt action.

Read Also: Top 7 Myths About PAN 2.0 Debunked

To Conclude

As digital fraud continues to rise, your PAN card, which was once just a tax ID, has become a gateway to your financial identity. With over 27% of global identity fraud cases involving forged PAN cards, the threat is real and growing.

By staying informed, being cautious with your personal data, and regularly monitoring your credit activity, you can protect yourself from falling victim to PAN card fraud. Remember: prevention is always better than cure when it comes to identity theft.

FAQs

Is it possible for an individual to obtain a loan on my PAN card without my consent?

Yes, if your PAN card details are leaked or stolen, the fraudsters can use them to avail loans or credit cards in your name.

Will I become responsible if fraud is committed using my PAN card?

You can protect yourself by promptly notifying the bank of any unauthorised use of your PAN card. You won't be held responsible for fraudulent transactions if you report them right away.

How frequently should I monitor my credit score to identify PAN misuse?

Regularly monitoring your credit score, at least once every 3 months, will help you identify fraudulent activity early.

Can I link my PAN to my Aadhaar to prevent fraud?

Yes, linking your PAN with Aadhaar helps reduce the risk of duplicate or fraudulent PAN cards. It ensures your financial transactions are more secure.

Should I give my email ID or my PAN card to my employers or brokers?

Provide your PAN details to trustworthy professionals and never share them through unsecured email IDs or public platforms.