You are probably not hearing or reading about PAN card fraud for the first time. The scam has been going on for the past few years. It has undergone several changes in the way it dupes people, but the outcome is usually the same – financial loss and legal hassles for the victim. Over the past few years, we have seen several cases where people were duped of lakhs of rupees using PAN cards. In 2022, actor Rajkummar Rao revealed that he fell prey to fraud when his PAN card was misused to avail a loan in his name. Last year, actress Nagma Morarji lost Rs 1 lakh on the false pretext of updating PAN. A few years ago, hackers were specifically targeting SBI users for PAN card fraud. Now that the dates for filing ITR 2023-24 are approaching, these scams are on the rise once again.

While it is easy to fall prey to such scams, being cautious about some basic things about sharing personal information can help you avoid such scams to a great extent. Here is what PAN card fraud is, how to spot it and how you can report it if you ever fall victim to such an incident.

What is the PAN card scam?

PAN card fraud involves the misuse of a person’s Permanent Account Number (PAN) card, which is an essential identification for tax purposes in India. Fraudsters can steal PAN card details to carry out illegal activities such as identity theft, opening bank accounts, obtaining loans, making unauthorized transactions or filing fake tax returns. These activities can cause financial losses and legal troubles to the victim. It is important to detect and report such frauds promptly to minimize the damage and prevent further misuse.

How to Detect PAN Card Scam?

To see if your PAN card has been misused, you can track your financial and tax activities and check for any unusual or unauthorized actions. Here are some steps you can take:

,Check your credit report: Review your credit report regularly for any unfamiliar accounts or loans.
,Keep track of bank statements: Keep an eye out for unauthorized transactions or accounts opened in your name.
,Tax Filing: Verify that your tax return matches your actual income and that there are no discrepancies.
,Alerts from banks or tax authorities: Pay attention to any alerts or notifications related to suspicious activities.
,Official communication: Be wary of unexpected communications from financial institutions or tax authorities regarding activities for which you have not authorized.

If you notice any suspicious activity, immediately report it to the relevant authorities to prevent further misuse.

How to report PAN card scam?

If you suspect that your PAN card has been misused, you should take the following steps to report the fraud:

,File a complaint with the police: Visit your nearest police station to lodge an FIR regarding misuse of your PAN card.
,Inform your bank: Inform your bank if there is any unauthorised transaction or account linked to your PAN card.
,Contact Income Tax Department: You should immediately contact the Income Tax Department. You can do this both online and offline. To do this online, visit the Income Tax Department website and lodge a complaint through their e-filing portal. Offline, you can write to the jurisdictional Assessing Officer (AO) explaining the misuse and also include a copy of your FIR.