The most important document in India is your PAN (Permanent Account Number) it is connected with your bank accounts and income tax files and financial identity.
Nonetheless, the current increase in the number of PAN abuses and cases of PAN card frauds has become an issue of concern.
With your PAN, fraudsters are able to open fraudulent accounts, borrow funds, or even commit financial offenses in your name.
That is why it is the duty of any citizen to know how to secure their PAN. These are the 6 simple steps that can be taken to keep your PAN safe against abuse.
- Monitor Your Credit Report Frequently The PAN misuse is reported first in the credit report. The consumer is able to obtain the credit report and full credit rating of great credit bureaus such as CIBIL, Experian, or CRIF High Mark. When you notice any loans, credit cards, or inquiries that your name is not attached to, then you are likely a victim of bad checks. Even having a review of your report after every few months will help you to notice something suspicious early enough and take action before it develops.
- Confirm all welfare loans and credit accounts After you receive your credit report, you have to examine the list of active loans and credit cards in your name. Check all the information, including the name of the lender, the amount of the loan, and the date of application. In case you have noticed something suspicious in your account, go to the accounting institution in question on the spot and report the identity theft to them. Speed is useful in preventing additional damages and alerting fraudulent accounts to be investigated.
- Limiting Where and How You Share Your PAN The mistake most individuals commit is the excess sharing of their PAN card. Always keep in mind you should disclose your PAN only when it is strictly essential, e.g., when filling tax returns, KYC, or any other official bank task. Do not email or send using websites that are not verified. In case you hand in a hard copy, cross the full document with a write-up “Self attested towards [purpose given only]” and sign it. In this manner, a photocopy cannot be reused by making illegal transactions.
- Elevate a Suspicious Activities Dispute You will need to immediately raise a dispute in case you notice any unfamiliar financial activity associated with your PAN. Get in touch with the lender and inform them of the problem and to have the suspicious entry investigated. Another option is you can raise the credit bureau to flag the account as being potentially fraudulent. The sooner you report it, the sooner you will be able to prevent additional abuse. Always retain duplicates of your complaint and acknowledgment receipts as a guideline in the future.
- Report PAN misuse to tax authorities In case of serious misuse like fraudulent transactions or submission of false expenses on income tax under your name, then you must report to the Income Tax Department. Log in to the official portal of income tax e-filing, go to the section of grievance, and launch a detailed complaint about the PAN misuse. Include supporting documents, including your credit report, proof of identity, and your bank statements. To safeguard you against the occurrence of more fraud, the authorities may turn off your PAN or re-authenticate it.
- Check and keep track of the PAN security Your PAN needs protection, in which case it should be an ongoing activity. It is advisable to check on your credit report after a few months, go through your bank and tax statements, and confirm any new applications attached to your PAN. Should you lose your PAN card or have it stolen, then you should apply to have it reissued as soon as possible and update your records. Make sure also that you store your PAN card somewhere safe and do not carry it around with you.
Why It Is Fatally Important to Protect Your PAN
Your PAN is being directly connected to your money identity. In the wrong hands of a scammer, it might get you the penalty of a tax calculation, loan default, or even legal complications when doing things that you did not do.
Numerous victims find out about the issue too late, usually when a loan default notice is received or a query in the IT department shows up.
It is essential to take proactive measures to prevent PAN misuse to make sure that your credit score will not suffer and your financial reputation will not be damaged.
In the digital era, identity theft has become as simple as it has ever been so has prevention.
Visiting your credit report on a regular basis, being cautious with your PAN, and taking immediate action in case of any suspicious activity will help you guard yourself against severe effects.
Always manage your PAN just the way you manage your digital signature, which is to keep it confidential, safe, and paged by surveillance. These are only six easy steps in order to be a step ahead of fraudsters and assure your personal and financial security.
