Sharing Pan: Safe Or Not?

The Permanent Account Number (PAN) card is a crucial identification document for Indian taxpayers. It is a 10-digit unique number issued by the Income Tax Department to taxpayers. Due to its importance, it is not safe to give your PAN card number to others unless it is absolutely necessary. Your PAN card number is sensitive personal information that can be used for identity theft and other fraudulent activities, such as obtaining loans, purchasing properties, and jewellery, or investing in black money. Therefore, it is recommended to only give your PAN card number when it is compulsory and to pick other identity proofs, such as a driver's license, voter ID, and Aadhar card, when possible.

Scams that can be done with a PAN card

While a Permanent Account Number (PAN) card is a crucial form of identification in India, it is not always safe to give your PAN card number to others. This is because your PAN card number contains sensitive personal information that can be used for identity theft and other fraudulent activities. Here are some common scams that can be done using a PAN card:

• Obtaining Loans and Credit Cards: Fraudsters can use your PAN card details to apply for loans or credit cards in your name. This can leave you with the burden of repaying these debts and facing any legal consequences.
• Illegal Jewellery Purchase: In India, purchasing jewellery over a certain value requires submitting PAN details. Scammers can misuse a victim's PAN card to buy expensive jewellery, and the victim will be summoned by the income tax department for any tax evasion.
• Renting Hotel Rooms and Vehicles: Scammers can use the details from a stolen PAN card to rent hotel rooms or vehicles. If any illegal activities occur, the authorities will reach out to the person whose ID was used, who will then have to deal with the repercussions. Additionally, rented vehicles can be used for trafficking, smuggling, and other illicit activities.
• Opening Bank Accounts: Someone could use your PAN card details to open a bank account in your name and conduct fraudulent transactions. You may then be held responsible for the actions of the fraudster.
• Identity Theft: Your PAN card details can be used to steal your identity, which can have serious long-term consequences.

To protect yourself from these scams, it is essential to keep your PAN card secure and avoid sharing your PAN card details unless necessary. Regularly check your financial statements and credit score for any suspicious activities. Additionally, when providing PAN card photocopies, it is recommended to self-attest them by signing, dating, and mentioning the reason for submission.

When to give your PAN card number

A PAN card, or Permanent Account Number, is a 10-digit unique number issued by the Income Tax Department to taxpayers in India. While it is necessary to share your PAN card number in certain situations, it is generally not safe to give your PAN card number to others unless absolutely required. Your PAN card number is sensitive information that can be misused in multiple ways and for various fraudulent activities and scams.

So, when is it necessary to give your PAN card number? Here are some instances where providing your PAN card number is typically required:

• Tax Purposes: As PAN cards are issued by the Income Tax Department, they are primarily used for tax-related purposes. Individuals need to provide their PAN card number when filing income tax returns or making tax payments.
• Financial Transactions: In India, a PAN card is often required for significant financial transactions, such as opening a bank account, purchasing property or jewellery, or obtaining a loan.
• Government Services: PAN card details may be mandatory when availing specific government services, such as booking a tatkal (emergency) ticket on Indian railways. However, the government has started displaying only the last four digits of the PAN to prevent identity theft.
• Employee Background Verification: Employers may require employees' PAN card information for background verification and other employment-related processes.
• Other Services: There are certain instances where providing your PAN card number may be necessary, such as obtaining a postpaid connection or during visa applications and travel bookings.

It is important to exercise caution when sharing your PAN card number. Only provide your PAN card number to authorised entities and avoid sharing it casually as an ID proof. Additionally, keep track of where you have submitted physical or digital copies of your PAN card to help prevent potential misuse.

How to avoid PAN card fraud

A Permanent Account Number (PAN) card is one of the most important government IDs for Indian citizens. However, it is also sensitive information that can be misused in multiple ways. Here are some ways to avoid PAN card fraud:

Avoid sharing your PAN card number unless necessary

Your PAN card number is sensitive information that can be used for identity theft and other fraudulent activities. Only share your PAN card number when absolutely necessary, and avoid using it as ID proof everywhere. Opt for other identity proofs such as a driver's license, voter ID, or Aadhar card, which are less vulnerable to fraud.

Be cautious when sharing photocopies of your PAN card

When sharing photocopies of your PAN card, only provide them to authentic people or companies. Always sign and date the photocopies before submitting them, and keep track of where you are submitting them.

Protect your personal information

Avoid entering your full name and date of birth on online portals or random websites. This information can be used to track your PAN card details. Additionally, be cautious when providing personal details to travel agents, online travel portals, or social media sites, as these can also be sources of PAN card information leaks.

Regularly check your credit score and income tax records

Regularly checking your credit score and income tax records can help you identify any suspicious activities or loans taken out in your name without your knowledge. You can use online portals to access your credit score and income tax Form 26A.

De-link your Aadhar card and bank accounts

It is no longer a government mandate to link your Aadhar card to your bank accounts. By de-linking these, you can add an extra layer of protection against potential PAN card fraud.

Secure your PAN card details

Delete any PAN card details stored on your phone, and keep the original and photocopies of your PAN card in a secure place.

What to do if your PAN card is misused

The Permanent Account Number (PAN) card is a crucial document issued by the Government of India. It is used by the Income Tax Department to identify a taxpayer and gain insight into their financial information. The PAN card is also often used as proof of identity and date of birth. Due to the sensitive nature of the information it contains, it is not safe to give your PAN card number to others unless necessary. If you suspect that your PAN card has been misused, here are the steps you should take:

Check for Misuse:

Firstly, it is important to confirm that your PAN card has been misused. You can do this by checking your credit score through a credit bureau website. Here are the steps:

• Visit a credit bureau website, such as TransUnion CIBIL, Equifax, Experian, or CRIF High Mark.
• Search for the option to check your credit score.
• Enter your personal information, including your financial details.
• Verify the one-time password (OTP) sent to your phone.
• Review your credit score for any suspicious activities or discrepancies.

Notify the Authorities:

If you find any signs of misuse or unauthorised transactions, you should immediately report it to the relevant authorities. Here are the steps to file a PAN card misuse complaint:

• Visit the official portal of the Tax Information Network (TIN) of the Income Tax Department.
• Navigate to the 'Customer Care' section, usually found in the top right corner.
• From the drop-down menu, select 'Complaints/Queries'.
• Fill out the complaint form with your personal details and describe the nature of the complaint.
• Enter the captcha code and submit the form.

Take Preventative Measures:

To protect yourself from further misuse or fraud, it is essential to take the following precautions:

• Be cautious when entering your PAN card number on websites. Look for 'https' in the URL, indicating a secure and encrypted connection.
• When submitting PAN card photocopies, attest them with your signature, date, and the reason for submission.
• Avoid providing your full name and date of birth on suspicious websites.
• Regularly track your credit score and financial statements to identify any suspicious activities.
• Keep your PAN card details secure and safe at all times.

Contact Your Bank:

In addition to reporting the misuse to the authorities, you should also contact your bank if you notice any suspicious transactions or financial irregularities. They can help you investigate and resolve the issue.

Remember, it is essential to act quickly and take the necessary steps to minimise the potential damage caused by the misuse of your PAN card. By following these steps, you can help protect your identity, finances, and personal information.

Why PAN card fraud is a concern

PAN card fraud is a serious issue in India, with a 2018 report by IndiaSpend highlighting that the country witnessed the maximum number of PAN card frauds that year. The ease of access to personal information and the linking of PAN cards to Aadhaar numbers and bank accounts have made it increasingly vulnerable to misuse. As a result, individuals are at risk of identity theft and financial losses. Here are some reasons why PAN card fraud is a significant concern:

Ease of Access to Personal Information:

The Indian government's regulations requiring individuals to link their PAN cards with their Aadhaar numbers and bank accounts have made it easier for criminals to access sensitive personal information in one place. This includes details such as name, date of birth, photograph, signature, and PAN number.

Financial Transactions and Loans:

PAN cards are widely used for financial transactions, such as opening bank accounts, obtaining loans, or purchasing insurance. If someone's PAN card details fall into the wrong hands, fraudsters can open bank accounts in their name and conduct fraudulent activities, leaving the individual responsible for the actions of the fraudster. Additionally, scammers can use PAN information to avail of loans or credit cards, burdening the victim with debts and legal ramifications.

Identity Theft:

PAN card details are often required for various purposes, such as railway ticket bookings, hotel reservations, or jewellery purchases above a certain threshold. Fraudsters can use stolen PAN card details to hide their identities and conduct illegal activities. This can have serious consequences for the victim, as they may be summoned by the income tax department or implicated in criminal activities.

Online Security Risks:

With the increasing use of digital platforms, individuals may unintentionally share their PAN card details on insecure websites or with third-party processing agencies. This increases the risk of personal information being leaked or hacked, especially if the servers are not secure. Social media sites, where individuals provide personal details to create profiles, are also potential sources of PAN card misuse.

Impact on Credit Score:

PAN card fraud can have a detrimental effect on an individual's credit score. If someone steals or misuses a PAN card to obtain loans or credit cards, the victim may suddenly find themselves burdened with debts that they are held responsible for. This can lead to a significant financial crisis and damage the individual's ability to secure future loans or maintain a good credit rating.

To conclude, PAN card fraud is a pressing concern due to the ease of access to personal information, the widespread use of PAN cards in financial transactions, the risk of identity theft, online security vulnerabilities, and the potential for significant financial and legal repercussions for victims. It is crucial for individuals to safeguard their PAN card details and remain vigilant to prevent misuse and fraud.

Frequently asked questions