Pan Card Fraud on the Rise. Nationwide Scam Impacting Senior Citizens, Farmers and More

Exposing the PAN Card Fraud! How Scammers are Preying on India’s Most Vulnerable

A major PAN card fraud scheme is said to be being carried out in India where the fraudsters misuse the PAN card of the unsuspecting victims who belong to the class of people who cannot defend themselves like the dead, the elderly, farmers and students. There are several instances coming up where people get tax notices worth crores for transactions that have not been made by them.

This essential item of identification, which one needs for their tax returns or for many financial operations, is slowly and steadily becoming a tool for conmen to prey on the weaker sections of society. Who are the victims? How exactly does this alleged scam work and who is it targeting? What can happen to victims who fall prey to this scheme?

How are PAN Cards Misused?

The Permanent Account Number (PAN) card is an identification and tracking number provided by the Income Tax Department of India that also facilitate financial transactions and other financial activities. This form contains personal details such as name, date of birth, signature and most importantly the Permanent Account Number. This information, once shared with the wrong people, can lead to a string of financial problems.

Criminals especially targeting some groups of people have been accused of using PAN cards to perpetrate a number of scams.

Opening Fake Bank Accounts

The PAN stolen can be used to open fake bank accounts. Such accounts can then be used for money laundering or for any other criminal activity.

Applying for Fraudulent Loans

One of the most severe consequences that a criminal can bring using the stolen PAN details is the application for credits in the name of the victim. The balance is taken by the victim who is now left with the debt burden.

Hiding Illegal Income

Black money can be laundered through transactions with reference to other stolen PANs and this makes it hard for the government to locate the source.

Property Registration Fraud

In many cases, stolen PANs may be used to forge documents that relate to property sales; this can cause serious legal and financial implications to the rightful owner. 

New reports indicate that this fake business is probably hunting for vulnerable victims who cannot closely monitor their transactions. These groups include:

Senior Citizens

The illiterate and normal elderly persons who have not transacted through internet before might not be much careful about their PAN details.

The Deceased

Getting the PAN details of deceased individuals might be a cunning strategy, as they would continue to be engaged in such transactions for a longer time.

Farmers and Students

Such groups may own PAN cards rarely engaging in any financial transactions meaning that fraudsters can easily carry out fraudulent activities knowing fully well that such accounts will be overlooked.

The Alarming Reality: Cases and Consequences

Several instances of PAN card misuse have been reported time and again through various news channels where people have suffered a lot. Recently, a woman residing in Mumbai and aged 70 years had to go through a legalistic struggle after her PAN was fraudulently utilized to sell a property attracting ₹1. 3 crore. Similarly, other reports describe specific cases of tax notices received by the individuals for the transactions that they never conducted.

There are a lot of penalties involving the misuse of a PAN card. Victims may face:

• They could be compelled to refund the fraudulent loans or be subjected to tax issues due to non-existent earnings.
• Finding the legal confusion that arises due to misuse can often take a substantial amount of time and cause stress.
• PAN-related fraudulent activity can lead to an adverse credit report on the affected victim.
• Understanding the Extent of the Scam
• Although the investigators are trying to accumulate evidence to prove the existence of a scam that embraces the entire country, the case seems alarming with more individuals complaining about being victims of scams on the rise.

Here is what has come out so far

The techniques used by the fraudsters are yet to be determined in a precise manner. Despite this, there are prospects of getting PAN details through irresistible emails, hacking the website, or capitalizing on the loopholes in the verification exercise. The actual scale of the alleged scam is still unknown to the public. It is probable that authorities are studying the data patterns and trying to track the suspicious transactions.

The government then made it compulsory to link PAN cards with Aadhaar which is a unique biometric identification number to check such practices. However, the recent reports suggest the scam might be finding ways to bypass this security.

Recommendations from Protecting Yourself from the Pan Card Scam

While the investigation unfolds, here are some crucial steps individuals can take to safeguard themselves:While the investigation unfolds, here are some crucial steps individuals can take to safeguard themselves:

• Handle your PAN card details like your financial data. Avoid the sharing of photocopying or digital copies if this is avoidable at all times.
• Do not open or reply to alert emails or text messages claiming to be from government administrations or banks.
• The Income Tax Department offers an Annual Information Statement (AIS) that gives an overview of your transactions. It is advisable to download and study AIS on a regular basis to check for any disparities.
• In case you feel that your PAN card has been fraudulently used, you should inform the Income Tax Department and then register a police complaint.

Opinion

There is a requirement for government authorities to upgrade strategies performed against data breaches and employ strict safeguards for implementing verification measures for financial activities associated with PAN cards. It is important to raise public awareness, especially among the susceptible population, regarding PAN card risks and phishing scams. This can be done through partnering with banks, financial institutions and other agencies within the society.

The procedure for reporting instances of PAN card misuse and conducting investigations into such cases should be well developed. This will help in early intervention and assistance to victims. That is why together with the growing number of financial transactions through the Internet, fintech companies also have an obligation to introduce proper security measures and measures to increase the awareness of users regarding threats related to PAN card fraud.