A Permanent Account Number (PAN) is a 10-character alphanumeric number issued by the Income Tax Department. It serves as a unique identifier and is widely used to verify financial transactions, file taxes, open bank accounts, invest in mutual funds, avail personal loan offers, and even as a valid ID proof.
Given its extensive usage in both personal and professional capacities, the PAN card has unfortunately become a tool that fraudsters exploit to commit financial fraud, identity theft, and other illicit activities. In this blog, we will cover the distinguishing factors between a real and fake PAN card and provide details to help you avoid becoming the fraudsters’ next victim.
A fake PAN card mimics the original PAN card by incorporating features that closely resemble the number format (e.g., HIJPL 1234 M). Fraudsters generate these cards to conduct illegal financial activities under someone else’s identity.
| Feature | Original PAN Card Characteristics | Fake PAN Card Characteristics |
|---|---|---|
| Hologram | Changes in colour and patterns | Missing, faded, or no change |
| Watermark | The lion image becomes visible when held against the light | Missing or no lion image |
| Font & Layout | Specific and consistent | Inconsistencies or discrepancies |
| Four Dots on Back | Present | Missing or irregular |
| Print Quality | Clear and high-quality | Blurry or poor-quality |
| QR Code | The official app reads and matches the valid details | Unreadable, mismatched, or incorrect data |
The PAN card frauds can take various forms, so understanding the examples of misuse and consequences for the victim is crucial for self-protection.
| Fraud Type | Examples of Misuse | Consequences for the Victim |
|---|---|---|
| Loan and Credit Card Fraud | Taking loans or credit cards using another person’s identity | Debt burden, damaged credit card score |
| High-Value Purchases | Purchasing expensive items | Tax implications summons from the Income Tax Department |
| Bank Account Opening | Opening bank accounts for illegitimate activities | Legal liability, implication in criminal acts |
| Renting Services | Renting hotel rooms or vehicles | Taking responsibility for expenses |
| Phishing Scams | Sending fake links, emails, and notifications | Financial loss, unauthorised access to devices, and identity theft |
| Data Exploitation | Scrapping PAN details from unsecured online portals | Information used to set up other frauds |
Read on: How to Apply for a Duplicate PAN Card
Keep track of your PAN card by keeping a check on the following signs:
In India, four main credit companies assess your creditworthiness: TransUnion CIBIL, Experian, Equifax, and CRIF High Mark. They base this assessment on your credit history, payment behaviour, and any outstanding debts. If you detect a new, unauthorised loan or credit card opened in your name, or a sudden drop in your credit score, consider that as an indication of a misuse of your PAN card.
You can access Form 26AS via the Income Tax e-filing portal. The Annual Information Statement summarises all tax-related transactions linked to your PAN number, including Taxes Deducted at Source (TDS). You must scrutinise it for any discrepancies or unknown transactions to identify if a PAN card is being used fraudulently under your name.
Regularly check your bank statements and investment portfolios. Stay alert for anything unusual, as this helps you quickly detect any unauthorised transactions or accounts opened with your PAN card number.
To minimise the risk of financial identity fraud, consider submitting less vulnerable documents like your Aadhaar card, Voter ID, or driver's license for identity verification whenever a PAN card is not specifically required. If PAN submission is mandatory, always provide a photocopy that clearly states the purpose of submission and diligently keep a record of when and where it was submitted.
For online submissions, ensure the website's URL starts with ‘https’ and includes an ‘s’. Refrain from entering your full name and date of birth, as this information helps in easily tracking your PAN and potentially exposes it to misuse.
To distinguish a real PAN card from a fake PAN card requires vigilance. Hologram, watermark, print quality, font, and layout are a few of the many visual differences one must carefully observe. As protecting your financial identity is imperative, you must learn how to verify PAN number, practice checking credit reports, and review tax statements.
However, in the event of suspected PAN card fraud, immediately file a PAN card misuse report with the relevant authorities. This prompt action can help mitigate the damage and assist in bringing perpetrators to justice.
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