Pan Card is the initial and essential proof to carry out various successful transactions. And this becomes one of the reasons behind these cards being prone to many fraud activities. There are different ways a pan card fraud can affect someone’s credit score.
However, there are several controversies that are storming up around the squandering of pan cards for getting access to personal loans and information through different fintech apps. So, the cardholders need to be aware of the fraud and how their card credentials are used illicitly.
Therefore, this article will help one to understand in a detailed manner how one can be aware of the pan card fraudulence and the adverse effects it can show on one’s credit score. We will also discuss how to monitor if the pan card is being misused and how to avoid such situations.
HOW CAN PAN CARD FRAUD AFFECT ONE’S CREDIT SCORE.
A pan cardholder might not know that a loan has been taken in his name and his card. The individual will be aware of this incident when the lender starts following and questioning him for repayment or when they are tracking their credit report.
This unfortunate situation can lead the card owner to end up securing a low credit score that can make them less worthy to borrow any loans in the future. On the other hand, the pan cardholder will be asked to repay the loan amount that was not even debited to their account. So, in this case, one should inform the bank officials or CIBIL officials at the earliest to take a precautionary step against this.
HOW CAN ONE CHECK IF THEIR PAN CARD IS MISUSED.
There have been scenarios where cardholders have become prey to fraud in the recent past. When their card is misused, they get informed that the loan has been disbursed to an unknown individual without their permission. As a result, this financial fraud drastically affects the holder’s credit score.
To make it easier for you, here are some ways to monitor if one’s pan card has been misused.
● The user can inspect if the PAN number has been used unethically by simply generating credit scores.
● One can detect if their loan has been disbursed under their name by checking their Credit Score and report or CRIF high mark.
● There are many apps and other fintech platforms to check financial reports.
● To examine the card status in any other app, the card owner has to fill in the card details to find out if someone else has borrowed the loan under their pan card details.
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HOW TO AVOID OR PREVENT ONESELF FROM THESE FRAUDS.
● Card owners use pan cards only when necessary, as documents like Voter ID and Adhar cards are less prone to fraud than pan cards.
● One should refrain from filling in details like ‘full name’ ‘birthdate’ publicly, especially on suspicious, unsecured online portals. These details are very likely to be used to trace one’s pan number on the income tax website.
● Always putting a date with a signature while submitting documents can secure the vulnerable details from getting leaked into the wrong hands.
● One should inculcate the habit of keeping track of the places where they have submitted the physical photocopies of their pan card.
SUMMING UP
Several cases have been reported about such loan fraud. The only way to save oneself from being a victim is to take the necessary steps mentioned in the article above. Securing pan details is very important so that it won’t impact one’s financial health. Hence, taking proper precautions is always better than expecting a cure.
