UPSC Aspirant's PAN Misused to Raise ₹25.59 Crore Loan in Varanasi Cyber Fraud

Post Views: 17

A Critical Breach in Know-Your-Customer Protocols Exposes a ₹25.59 Crore Loan Scam in Varanasi

A disturbing case of identity-based cybercrime has come to light in Uttar Pradesh, where an individual exploited the Permanent Account Number (PAN) of a Union Public Service Commission (UPSC) aspirant to secure loans totaling ₹25.59 crore.

The Incident

The massive financial irregularity was discovered when a routine online transaction of ₹3,500 failed, revealing a substantial negative lien in the victim’s bank account.

The incident occurred on January 17, when Anurag Mishra, a UPSC aspirant residing in Delhi, attempted to pay his library fee using Google Pay. Upon encountering a transaction failure, Mishra checked his account status and was shocked to discover a negative lien exceeding ₹25 crore in his ICICI Bank account. Mishra immediately notified the bank’s customer care and subsequently visited the bank branch.

Investigation and Preliminary Findings

Initial inquiries revealed that an unknown individual had misused Mishra’s PAN details to open a current account in Varanasi and subsequently availed loans amounting to crores. The cybercrime unit has launched an investigation, and preliminary findings suggest possible internal lapses or collusion at the bank level, which is currently under scrutiny.

Cyber officials are examining how such a massive liability could be created using a single identity document. Sources indicate that shell firms may have been established through weak Know-Your-Customer (KYC) channels or forged papers, after which loan amounts were siphoned off into multiple accounts.

According to officials, identity theft-driven cybercrimes have increased significantly in recent years, with fraudsters exploiting PAN and other personal documents to set up shell companies and misuse digital lending systems. In many cases, victims remain unaware of the discrepancies until they appear in their banking or credit records.

Concerns and Precautions

The incident has raised concerns among students and young professionals who rely heavily on digital platforms and online documentation for everyday transactions. Cyber experts warn that identity-based fraud has become more organized and tech-driven, often involving mule account networks and layered financial trails.

Law enforcement officials have urged citizens to regularly monitor their bank statements, credit reports, and tax records, and to immediately report any unfamiliar entries or suspicious activity. They have also advised against sharing PAN, Aadhaar, or banking details on unverified platforms and cautioned individuals to remain alert to sudden calls or messages seeking personal information.

Actions Taken

Authorities have initiated steps to freeze suspect accounts and reverse fraudulent entries wherever possible. Banking regulators have been informed, and a detailed transaction audit is underway. Further disclosures are expected as investigators trace beneficiaries and fix accountability.

Conclusion

The incident highlights critical concerns about identity security and institutional safeguards in India’s rapidly expanding digital banking ecosystem. The breach has sparked anxiety among individuals who rely on digital platforms for everyday transactions, and it serves as a stark reminder of the need for robust KYC protocols and effective cybersecurity measures to prevent such incidents.