Individuals with PANs Can Verify Loan Activity for Accuracy

PAN Misuse Detection and Prevention

Key Statistics:

• Every loan taken against a PAN must show up in a borrower's credit history.
• Borrowers can obtain one free credit report per year from any of the credit bureaus operating in India.
• A sudden dip in credit score without an obvious reason can be a red flag.

Identifying PAN Misuse

Read also: Correcting Credit Score Errors: A Guide to Ensuring Accurate CIBIL Reports and Optimal Loan Eligibility

To detect PAN misuse, borrowers can follow these routine checks:

1. Check Credit Report: The fastest way to identify a loan is by checking the credit report, specifically the "Accounts" or "Credit Facilities" section, which lists every loan and credit card linked to the borrower's PAN.
2. Verify Enquiries: Check the "Enquiries" or "Credit Checks" section for multiple loan enquiries from banks or apps that the borrower never approached.
3. Monitor Credit Score Behaviour: A sudden dip in credit score without an obvious reason can indicate PAN misuse.
4. Look for Unfamiliar Messages: Search for loan-related keywords in email and SMS history to identify unfamiliar loan accounts.

Responding to PAN Misuse

If a borrower discovers a loan that isn't theirs:

Read also: Missing a Single EMI Payment Can Adversely Impact Credit Profile

1. Raise a Dispute: Use the credit bureau's online dispute option to mark the loan as "not mine" or "fraudulent".
2. Contact the Lender: Ask for details of the KYC documents used and flag the account as identity misuse.
3. File a Complaint: Report the incident on the cybercrime portal to strengthen the case with both lenders and bureaus.

Preventing Further Damage

If ongoing misuse is suspected, borrowers can place a temporary credit freeze or alert with the credit bureau to prevent further loans from being taken in their name.

Why PAN Misuse Happens

PAN copies are widely shared for various purposes, and one careless upload or data leak can lead to misuse. Most cases are not dramatic hacks but quiet reuse of leaked information.

Best Practice

Check credit reports at least once a year, even if not planning to borrow, to ensure awareness of what exists in one's financial name.