PAN Card Scams That You Must Be Aware Of

Posted on: Apr 8, 2024 | 3 mins | Written by: HDFC ERGO Team

PAN Card Scams That You Must Be Aware Of

Permanent Account Number, or PAN, is a crucial government document required to create bank accounts, submit taxes, and more. However, the ten-digit alphanumeric identifying number gets improperly utilised to plot fraud. Your PAN number was formerly exclusive to employers. It is now simple for thieves to exploit a PAN card number to perpetrate fraud. Many websites require PAN card information; it is now simple for fraudsters to obtain the number and carry out illegal activities.

What is a PAN card?

A PAN card is a unique alphanumeric identifier which consists of 10 characters. India's Income Tax Department issues the PAN card document. It serves as a vital proof of identification for individuals, companies, and entities engaging in financial transactions in India. The PAN card is primarily used to track taxable financial transactions and ensure that individuals and entities comply with tax laws.

How your PAN card can be misused?

Government laws such as those tying Aadhaar numbers to bank accounts and PAN cards make it easier for thieves to obtain all the information they need in one location. Users have started taking cyber insurance to prevent themselves from these frauds.

Online booking of tickets

You need to mention your PAN number while making a Tatkal train reservation. The prepared charts with traveller details at the train station display the same information as your name. These facts are accessible to everybody, making our information available for illicit purposes.

For applying for credit cards and loans

PAN and other information are asked to create bank accounts, obtain postpaid connections, or conduct background checks on employees. A third party often carries out the processing. If these agencies' servers are not secure, there is a good chance of a breach in your personal information. This data breach allows scammers to use your personal information to apply for loans.

Booking of hotel rooms or renting cabs

We occasionally give our personal information to travel agencies to apply for visas or make other travel arrangements, as well as to online travel portals when booking vacations. Even though most of these servers are very safe, scammers are always on the lookout for ways to utilise your personal information without authorisation while you're gone, and occasionally, they are successful.

How to check if someone is using your PAN card?

Verifying your credit score is the most effective method of determining whether someone is abusing your PAN card. This statement lists all the loans you have taken out using your PAN. You can spot fraud if you come across any mentioned loans you did not accept. The actions that follow can also be beneficial to you.

● Step 1:

Several bureaus are accessible online to help you check your CIBIL score. You can select any suitable option. You can also check it on UPI apps.

● Step 2:

Go to the website. You have to look for the option to check your credit score. While some websites may require you to select a plan to receive a thorough credit score, it is often free of charge.

● Step 3:

Provide correct information about your name and date of birth. You will also be asked to submit your registered cellphone number, email address, and PAN. It may be necessary to use an OTP to validate your cellphone number.

● Step 4:

Your credit score will be accessible to you.

PAN card scams you should beware of?

There are several scams that an individual can face with his PAN card. We have listed a few scams that you must be aware of-

Debit Card Fraud:

We all have bank accounts linked to our PAN card. This increases the chances of unauthorised transactions. To save yourself from such scams, you can apply for cyber insurance. It protects against such incidents and prevents you from losing your hard-earned money.

Credit Card Fraud:

You can get into trouble because of a stolen credit card. Cyber insurance for shopaholics and families can offer peace of mind by covering expenses related to fraudulent credit card transactions.

ATM Fraud:

It can result in unauthorised withdrawals and financial losses. Ensure your family's financial security with cyber insurance coverage tailored to ATM fraud protection.

UPI Fraud Linked:

UPI fraud, where cybercriminals exploit compromised PAN card data to conduct unauthorised transactions, can have severe financial consequences.

How do you avoid misuse of lost PAN cards?

● Only use your PAN card when required. Other legitimate papers less prone to forgery include driver's licences, voter IDs, and Aadhar cards.

● Don't enter your entire name or date of birth online or on unreliable websites. You may use this data on the Income Tax website to track down your PAN number.

● Keep your PAN card safe, along with copies of the original. When sending in documents, include the date with your signature. Maintain a record of where you sent hard copies of your PAN card.

● Apply for cyber insurance for family: Make sure you have cyber insurance to protect yourself from scams.

● Your income tax return's Form 26A keeps track of every financial transaction you make using your PAN. Ensure there are no unusual actions. You can do this by periodically reviewing your Form 26A.

Conclusion

PAN card fraud occurs when con artists use a victim's number to apply for a credit card, rent a hotel room, or buy jewellery, all of which impact the victim's credit rating. These scams might go unreported for a long time since most people don't check their credit score until they need a loan. We hope that now, with such in-depth knowledge, you will not fall into the hands of scammers.

Disclaimer The above information is for illustrative purposes only. For more details, please refer to policy wordings and prospectus before concluding the sales.

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