As India’s financial landscape continues to embrace digital transformation, the Permanent Account Number (PAN) has become a crucial element for identity verification in loans, credit cards, and banking transactions. While this shift has enhanced efficiency and accessibility, it has also exposed users to a rising threat: unauthorized loans linked to compromised PAN details. Many individuals remain unaware of such fraudulent activities until they receive unexpected repayment calls, legal notices, or experience a sudden decline in their credit scores.
The PAN serves not only as an identity verification tool but also as a universal financial identifier, streamlining credit processing. Unfortunately, if PAN details fall into the wrong hands, scammers can exploit the information to secure loans or credit facilities without the owner’s consent. Once a loan is approved, it appears on the credit history, negatively impacting the credit score and potentially complicating future loan approvals.
Understanding the Importance of Monitoring Your Credit Report
Given the increasing reliance on automated systems by financial institutions, it is essential for consumers to take charge of monitoring their credit profiles. Credit bureaus in India, such as CIBIL, Experian, Equifax, and CRIF High Mark, maintain comprehensive records of all loans and accounts linked to a PAN. By regularly checking their credit reports, users can quickly identify unauthorized financial activities.
Credit reports provide a detailed summary of borrowings and payments, including personal information, loan statuses, repaid loans, credit card details, and any inquiries made using the PAN. By observing these reports diligently, users can spot red flags such as unknown lenders, unfamiliar loan accounts, incorrect loan amounts, or erroneous credit inquiries. Early detection of these signals enables prompt action, reducing the risk of further financial damage.
Steps to Access and Review Your Credit Report
Accessing your credit report is a straightforward process. Choose a credit bureau, such as CIBIL or Experian, and enter your PAN along with basic personal information. Most bureaus offer one free report per year that users can download and review. Upon generating the report, examine the list of loans, credit accounts, and lenders, paying close attention to account types, issuance dates, and balance details.
If you identify discrepancies, such as unfamiliar loans or credit accounts, it is crucial to investigate immediately. Look for any unusual activities, including loans from unknown lenders, accounts opened in locations you have never visited, or inquiries that you did not initiate. These indicators can signal impending fraud, and the sooner they are detected, the better the chances of preventing further issues.
For those who find the manual review process challenging, several fintech applications, including OneScore, Paytm, and Cred, provide simplified access to credit bureau data. These apps present an easier-to-understand version of the credit report, highlighting active loans, credit limits, and repayment statuses. Additionally, some apps can send alerts when new credit activities are registered against your PAN.
Actions to Take if Unauthorized Loans Are Discovered
If you discover an unfamiliar loan or credit account linked to your PAN, it is vital to act swiftly. The first step is to raise a dispute with the credit bureau that issued the report. Most bureaus allow for online dispute resolution, enabling users to flag incorrect entries. Following this, contact the lender associated with the unauthorized loan to inform them of the situation formally. You will need to provide identity documents and a written declaration to initiate an internal investigation.
In cases of confirmed fraud, filing a complaint with cybercrime authorities or local police is essential to strengthen your case and create an official record. Informing the Income Tax Department and PAN authorities about the fraud can further help address the situation.
Regularly monitoring your credit history is a proactive measure that can protect you from unexpected scams and financial distress. By understanding the importance of vigilance and knowing how to check your credit report, individuals can safeguard their financial health and ensure that their PAN remains secure.
