Stolen PAN Numbers Fuel a New Wave of Financial Fraud Across India

Quick Heal Technologies Limited has raised serious concerns over a sharp rise in PAN card–related financial fraud across India. According to findings from Seqrite Labs—India’s largest malware research and analysis center—cybercriminal networks are increasingly abusing stolen Permanent Account Numbers to create fake bank accounts, obtain illegal loans, and divert government welfare benefits.

This growing wave of fraud is causing massive financial losses while permanently damaging the financial identities of unsuspecting citizens. Investigators note that the problem has intensified alongside the rapid digitisation of KYC systems. In 2025 alone, the Income Tax Department identified more than 1.2 million PAN numbers linked to suspicious shell entities, enabling activities such as benami property transactions and multi-layered money laundering operations that often slip past conventional checks.

How PAN Data Is Being Compromised

Threat actors are using multiple techniques to steal PAN information. Common methods include phishing messages posing as income tax refund notices, compromised or fake tax-filing applications, and data leaks from poorly secured online platforms. Once obtained, PAN details are combined with forged Aadhaar documents and AI-generated selfies to bypass identity verification processes at banks and fintech platforms, resulting in the creation of mule accounts.

Emerging Criminal Techniques

Cybercrime groups have begun operating organized “PAN harvesting” networks that collect PAN numbers at scale. These details are frequently sold on underground marketplaces for as little as ₹50 per PAN, making identity fraud both cheap and accessible. The use of artificial intelligence is also increasing, with deepfake images and automated identity creation helping criminals evade manual verification and speed up onboarding.

Key Safety Measures for Citizens

Quick Heal stresses that combating PAN fraud requires both advanced technology and public awareness. Solutions like its AntiFraud.AI platform aim to detect suspicious activity early, but individual caution remains critical.

To stay protected:

Never disclose PAN details through unsolicited emails, calls, or WhatsApp messages.

Confirm any PAN-related request only through official portals such as the Income Tax Department or NSDL/UTIITSL websites.

Regularly review your credit report (via platforms like CIBIL) and check Form 26AS for unfamiliar transactions.

Activate two-factor authentication on all financial and tax-related accounts.

Report suspicious activity immediately to cybercrime.gov.in or call the national cybercrime helpline 1930.

When submitting a physical PAN copy, always self-attest it and clearly mention the purpose (for example, “KYC for ABC Bank only”).

By staying informed and vigilant, individuals can significantly reduce the risk of PAN misuse in an increasingly digital financial ecosystem.

By – Aaradhay Sharma