Is a fake loan being issued in your name? Here’s what you need to know.

Cyber fraud related to PAN (Permanent Account Number) misuse is on the rise in India. Fraudsters are increasingly targeting citizens’ PAN details to commit identity theft, open fraudulent financial accounts, and even secure loans or credit cards in someone else’s name without their knowledge — leaving victims with financial and legal troubles.

🕵️‍♂️ Why Scammers Want Your PAN Card Details

Your PAN card number is a critical piece of personal identification linked to your tax, banking, and financial records. Scammers can misuse it to:

• Apply for fake loans or credit cards in your name.
• Open bank accounts or take loans from NBFCs using forged documents.
• Conduct illegal financial transactions or launder money with stolen identities.
• Damage your credit score and financial reputation.

In some cases, they pair your PAN with fake or forged Aadhaar cards, salary slips, or identity documents to make fraudulent loan applications appear legitimate. A recent police case showed criminals using fake Aadhaar and PAN cards to secure multiple loans worth lakhs of rupees.

📉 How Fake Loan Schemes Work

Here’s a common scam scenario:

Phishing or data breach: You may be tricked into entering your PAN (and sometimes Aadhaar) details on a fake website or through a bogus SMS/email.

Identity theft: Scammers generate forged ID cards and documentation with your PAN embedded.

Loan application: Using these fake documents, they submit loan applications to banks or wallet PLATFORM' target='_blank' title='digital-Latest Updates, Photos, Videos are a click away, CLICK NOW">digital lenders, sometimes even simulating salary credits and employment history.

Loan approval: Because financial institutions often accept PAN as part of KYC checks, some loans can get sanctioned without your knowledge.

Credit report impact: The fraudulent loan then shows up in your credit report, lowering your credit score and potentially impacting future borrowing.

📊 Real Cases Highlight the Risk

• In one widely reported incident, fraudsters used stolen Aadhaar and PAN to secure loans worth nearly ₹50 lakh by forging salary statements and documents.
• Police have also arrested gangs that used fake identity documents to defraud banks and financial institutions.
• Experts warn online PAN card frauds — including phishing and smishing attacks — are increasing, and victims often discover misuse only after receiving debt demands or credit alerts.

🛡 What You Must Do to Protect Yourself

Here are practical steps you should take immediately:

🔒 1. Never Share PAN Details Unnecessarily

Avoid entering your PAN on unverified websites, unsolicited emails, SMS links, or when contacted by unknown agents claiming to offer loans or cards. Legitimate lenders will never demand PAN through random SMS links.

🧑‍💻 2. Secure Your Aadhaar and bank Accounts

Link your PAN only to official portals such as the Income Tax Department or authorized government sites. Keep your Aadhaar and PAN linked securely to reduce the risk of misuse.

📊 3. Regularly Check Your Credit Report

Log in to credit bureaus (like CIBIL, Experian, etc.) and check for any unauthorised loans or enquiries you never made. Early detection can help you act before it affects your creditworthiness.

📝 4. Report Immediately if You Suspect Fraud

If you find suspicious loans or credit activities:

• File a complaint with your bank or lender.
• Approach the local cybercrime police station.
• Report identity theft to CERT‑In or Income Tax authorities.

🧠 Key Takeaways

✔ Scammers can misuse your PAN to take loans, credit cards, or open financial accounts in your name.
✔ Fraud often begins with phishing emails, fake websites, or forged documents.
✔ Regularly reviewing your credit report and protecting your PAN and Aadhaar details is essential.
✔ Prompt reporting and legal action can help safeguard your financial identity.

 

Disclaimer:

The views and opinions expressed in this article are those of the author and do not necessarily reflect the official policy or position of any agency, organization, employer, or company. All information provided is for general informational purposes only. While every effort has been made to ensure accuracy, we make no representations or warranties of any kind, express or implied, about the completeness, reliability, or suitability of the information contained herein. Readers are advised to verify facts and seek professional advice where necessary. Any reliance placed on such information is strictly at the reader’s own risk.