Misuse of PAN usually goes unnoticed. You come to know about it when a bank calls, a loan application gets rejected, or your credit score suddenly falls. The good news is that you don’t need an insider or contact to check. By doing some routine checks you can get a clear idea whether there is any loan in your name or not.
First check credit report
Every loan taken against your PAN should be visible in your credit history. This includes personal loans, credit cards, education loans, buy now-pay later lines, and some app-based micro loans. You can get a free credit report every year from any credit bureau operating in India. After downloading it, go directly to the Accounts or Credit Facilities section. It contains a list of every loan and credit card linked to your PAN. If you see a loan you don’t recognize, make three quick notes: the name of the lender, the loan origination date, and the outstanding amount. These details come in handy later.
Don’t ignore inquiry records
Even if the loan is not granted, loan applications leave a mark. In your credit report, look for the Inquiry or Credit Check section. If you see multiple loan inquiries from banks or apps that you have never contacted, this is often the first sign that your PAN details are being misused or shared. Mistakes may occur in one or two separate inquiries.
Check the behavior of your credit score
A sudden drop in your score for no apparent reason is a red flag. New loans, missed EMIs, or loan inquiries can also bring down the score. If your spending habits haven’t changed but your score has, instead of waiting, assume something needs to be checked.
See messages you’ve ignored
Banks and NBFCs often send SMS or email alerts when a loan account is created or an EMI becomes due. Many people miss these because the name of the sender seems common or the message goes into spam. Search for loan-related keywords in your inbox and SMS history. It would be wise to check for even one unknown EMI alert.
If there is a loan that is not yours, take immediate action
First of all, raise the dispute through the online dispute option of the credit bureau. Mark the loan as not mine or fraudulent. This creates a formal record.
Second, contact the lender whose name appears in the report. Ask for details of the KYC documents used and flag the account as an identity abuser. And keep taking follow up in writing.
Third, file a complaint on the cybercrime portal. Misuse of PAN is considered identity fraud, and having a complaint number strengthens your case with both lenders and bureaus.
And consider freezing losses
If you believe the abuse is continuing, you can file a temporary credit freeze or alert with the credit bureaus. This makes it difficult for anyone to take a new loan in your name without additional verification. It’s a hassle, but far less painful than having to clean up multiple fraudulent loans later.
Why does this happen again and again?
PAN copies are widely shared for job, investment, KYC and basic paperwork. One careless upload or data leak is often enough. Most misuse cases aren’t major hacking, just the surreptitious re-use of leaked information.
a habit that helps
Check your credit report at least once a year, even if you’re not planning to borrow. The only reliable way to know what’s going on financially in your name? Misuse of PAN is stressful, but if caught early it can be corrected. Silence and delay only make a small problem bigger.