Fraudsters Use Fake PAN Cards to Register Companies, Leaving Victims with GST Notices

Cyber fraudsters in India are using fake PAN cards to register companies and accumulate crores in GST liabilities, leaving victims with notices and frozen bank accounts. The fraud involves hacking mobile phones or obtaining OTPs to create fake PAN cards and register companies using victims' details. Recent cases in Rajasthan include a cobbler from Balotra who received a GST notice for 6.79 crore rupees and had his bank account seized, and a supervisor from Alwar whose PAN was used to open a company in Delhi. The victims often have low incomes and are unaware until they receive official notices. This highlights a growing cybercrime trend exploiting India's digital identity and company registration systems.

Global Impact

This story highlights a systemic vulnerability in India's digital identity and corporate registration framework, with economic and social implications. Economically, fraudulent GST registrations lead to revenue leakage for the government and financial distress for victims, potentially affecting India's fiscal position.