What is a CPN?
CPN, also known as “CPN”, can be used to signify credit privacy number, credit profile number or consumer protection number. A CPN (or 9-digit number) is often used to replace your Social Security Number (SSN).
People claim that celebrities or government officials use CPNs in order to protect their privacy, as SSNs can be linked to a lot personal information. There is no evidence to support the notion that CPNs are legitimately obtained from a trusted source.
CPNs are being sold by businesses to consumers with bad credit. This allows them to apply for credit with a clean slate. It is not associated with your credit report. These businesses would love you to believe you can buy a CPN and replace your SSN when applying for credit. Creditors will not know your true credit history.
CPNs might seem like a good option if privacy concerns are high or you want to “start over” with your credit history. However, it is important to be cautious when you deal with someone trying to sell you one. Continue reading to learn why we don’t sell CPN numbers and tradelines for CPNs, as well as why you should avoid them.
How do CPNs work?
CPN Claims
CPN sellers often claim that CPNs are permissible due to the 1974 U.S. Privacy act. If a federal law does not require it, this act allows individuals to withhold their SSNs from documents.
The federal government doesn’t require consumers to provide SSNs when they apply for credit from private companies. However, creditors are allowed to refuse credit to you if you don’t have this information. Contrary to what many credit repair businesses would have you believe, the U.S. Privacy Act of 1973 does not allow CPNs to replace your SSN on credit applications.
Some people are able to use false SSNs as CPNs for credit applications. This is because lenders might not cross-verify the applications enough to ensure that the applicant’s name matches the listed SSN.
Where do CPN numbers come from?
All SSNs are issued by the Social Security Administration, while all Employer Identification Numbers or EINs are generated by the Internal Revenue Service (IRS). CPNs are not issued by these organizations and they do not receive them from any government entity.
Many businesses may offer “clean” CPN numbers, but they won’t tell anyone where they came from or how they got there. They can’t provide any documentation that would support their claims.
False claims by sellers that they can apply for a CPN number from the government on your behalf are made. However, the government doesn’t issue CPNs so this is impossible. There are two methods that disreputable businesses can obtain CPNs. Both are illegal.
- These scammers use real SSNs stolen from others, including children, elderly people, homeless people and people who are currently incarcerated. It is a red flag that a CPN being sold to you may have a certain credit rating or report. This could indicate that the SSN has been stolen.
- They generate fake social security numbers, which are not issued by the United States government. They use algorithms to generate 9-digit numbers, and then compare them with online databases to determine which numbers are able to pose as SSNs. These numbers are then sold to unsuspecting customers as CPNs.
How to get a CPN
There is no legal way to get a CPN. CPNs are not recognized or issued by any government agency. The only way to obtain a CPN is to buy a fake or stolen Social Security number.
There are no legitimate ways to use or purchase CPN numbers.
Although credit repair businesses and other businesses may sell them, it is illegal to buy a fraudulent SSN. This is what a CPN (Credit Protection Number) is. An SSN is a government-issued identifier number. The government does not sell these numbers or offer CPN applications.
Alternatively, some businesses might try to sell an EIN (or employer identification number) to you, promising that EINs can be used as legitimate forms of CPNs. EINs are issued by the IRS only for business purposes. This means that individuals who want to improve their credit score cannot legally use an EIN instead of their SSN.
Additionally, the IRS states that EINs are only issued to tax administration purposes and cannot be used for any other purposes. However, individuals can get loans linked to their EIN numbers, but they are not allowed to use the EIN to obtain a personal loan, line of credit, or another SSN.
Social Security Administration can issue new SSNs in exceptional cases. However, the requirements are very strict. A new SSN can only be obtained if your life is at risk or if you can prove that someone is using your number in an active way and is causing you serious ongoing harm.
You will not be able to use this new SSN to erase your credit history.
Credit Privacy Numbers: Is it Legal?
CPNs can be legitimated and legal if we go directly to the highest authority. We can see the official policy in written form. The Federal Trade Commission (FTC), and the Social Security Administration are the highest authorities in this instance.
FTC is a federal agency which polices business activities in order to protect consumers. The Social Security Administration (SSA), on the other hand, is the agency that administers all Social Security programs. These are the governing authorities for consumer protection, identity theft and fraud.
According the FTC
Lies on credit or loan applications, falsely claiming your Social Security number and obtaining an EIN from IRS under false pretenses are all federal crimes.
Evidently, using a CPN to apply for credit or loans in lieu of your SSN is a misrepresentation of your Social Security number. The FTC says it is illegal.
Although there are many businesses and credit repair agencies that might appear to be legitimately offering you a CPN, the bottom line is that federal law states that you can’t misrepresent your SSN. This can be verified in writing right at the source.
The Federal Trade Commission has warned companies selling CPNs for credit repair, and labeled such practices as frauds. Here’s what the FTC said about CPNs.
Credit repair companies might tell you to use the CPN/EIN instead of your Social Security number when applying for credit. They may also lie to you and claim that the process is legal. It’s a fraud. These companies could be selling stolen Social Security numbers. Often, these numbers are taken from children. The con artists will use a stolen number to identify you .
“The bottom line is that you can face penalties or time in jail if you use the number they have sold you.”
The Social Security Administration is also very clear on its official position on CPNs.
“The proliferation of Credit Privacy Numbers (CPNs) is a relatively new SSN misuse scheme and a threat to the security of child identity information…Despite what many of these credit repair websites imply, consumers should know that CPNs are not legal.“
How to Increase CPN Credit Score
CPN Tradelines Package are often sold by credit repair companies. They claim that it is easier to “boost” the credit scores of CPNs than to hide any bad credit records that might be associated with your SSN.
This tactic is increasingly common but it does not mean it is legitimate. False SSNs are used to conceal previous bad credit. This is fraud, and is reported as such at a federal level.
It is not surprising, however, that many people want to purchase a CPN to start fresh. It is easy for consumers to fall for the trap of misinformation from disreputable companies, and hear stories about other people using CPNs. CPNs can be used as a quick way to get credit. Unfortunately, this is not true.
It is a sad fact that ignorance is not a defense against the law. Blaming the company for selling illegal products does not protect the consumer from the possible consequences. A person who decides to buy a CPN to replace their SSN could be creating a paper trail that could prove to be very costly. Records would also be kept for every use of the tactic.
CPNs and Synthetic Identity Fraud
CPNs have led to synthetic identity fraud. Also known as synthetic identity theft, this new type of fraud is called synthetic identity fraud. Synthetic identity fraud refers to the criminal act of creating fake persons using a mixture of real and fictitious information.
Scammers might combine an address with the number of another person and the SSN (or CPN), of a third. The new false identity could be used to open credit cards and make fraudulent purchases totalling thousands of dollars. After that, the fraudsters might default on payments. It is difficult to trace the perpetrator or collect the debt because the fraudulent account isn’t linked to anyone.
This fraud is responsible for billions in annual losses. Even worse is the harm it does to victims whose identities have been compromised.
Identity Theft and CPNs
CPNs are here to help. CPNs are often SSNs that have been stolen from real people, particularly children. To “repair” their credit, individuals may combine stolen SSNs and real names to create synthetic credit profiles.
Unsuspecting parents or criminals can use a child’s SSN to get credit, and then default on the debt. This leaves a lasting mark on the child’s records. As an adult, the child may be suspect by lenders and have difficulty building credit because of the derogatory items on their record.
The victim might not be aware that they have been a victim of credit fraud until they use their SSN to make financial decisions as an adult. A student may discover that their credit is compromised after they apply for student loans to help pay college tuition.
Security and Enforcement are being stepped up
Federal government and credit industry are focusing more on how to combat this type of identity fraud. The FTC and U.S. Both the FTC and the U.S. Government Accountability Office convened expert groups to discuss ways to prevent synthetic identity fraud in the future. The Department of Justice states that the U.S. These cases are being prosecuted by attorneys.
The government passed in May 2018 a law to lower the rate of synthetic identity fraud. The law requires that the SSA provide electronic systems to banks that allow them to check within 24 hours whether applicants’ names and dates of birth match their SSN. This system will allow banks to quickly and easily detect fake identities before they give credit to fraudsters.
Banks are also exploring biometric technology to fight fraud. For example, voice recognition security can detect if a voice has been associated to multiple identities.
CPN fraud and synthetic identity fraud are under increasing scrutiny. Buying or using a CPN is not a safe move. You could create a fraud record by using a CPN to replace your SSN on documents. This is especially true as banks and federal governments take more aggressive action against fraud.
How to Avoid getting involved in CPN scams
CPN scams can be avoided by staying away from companies that try to sell you an EIN, CPN or any other product that will “wipe out your bad credit” or conceal it. You should not believe any company that claims you can get a new line credit without knowing your credit history.
Lenders can see your name, address, date of birth and any other information, including your SSN. They can quickly determine if you used a fake SSN. CPN providers often advise their customers to change their addresses and names. CPN providers that advise you to fake your address, phone number or any other information about your identity is a red flag that they could be fraudsters and may even incriminate you.
Many scammers prey on the most vulnerable: low-income people who can’t afford additional financial hardships. Consumers are lured by the promise of better credit scores and clean credit to buy CPNs.
CPNs can be used to obtain credit lines. Lenders may not be able to recover losses if the borrower does not make the required payments. This is because the fraudulent identity used at the time the account was opened could lead to the borrower being unable or unwilling to pay the dues. An investigation can be initiated at this point and investigators will follow the paper trail back to the consumer.
There are many stories about people who get away with CPNs. However, investigations can take place and charges may be filed years later.
CPN Fraud Cases – Criminal Cases
A Louisiana man was indicted for felony racketeering. This included identity theft and money laundering. He defrauded hundreds of people and financial institutions through his credit repair business. He claimed that he would replace the SSNs of unknowing victims by selling stolen SSNs as CPNs, costing hundreds of dollars each. If convicted, he could spend up to 75 years prison.
Another example, which occurred in 2018, was that of Calvin Wayne Cade, Jr. from Oklahoma City. He pleaded guilty in 2018 to knowingly making a false statement in a financial institution using CPNs in order to falsify SSNs in credit applications. He used CPNs to access stolen SSNs of children born between 2006 and 2008. Cade deceived credit card companies and banks into believing he had a better credit record by using a false number for credit applications.
He used the CPNs to obtain credit lines to purchase vehicles, TVs and furniture. However, he failed to pay the credit account creditors, leading to financial losses. Cade was sentenced to 18 months imprisonment , followed by three years of supervision. In restitution to his creditors, he was also ordered to pay $112924.54.
In September 2020, the leader of a fraudulent credit repair scheme and a ring consisting of 11 participants were indicted for fraud against banks, lenders, merchants, landlords, and landlords. The fraud involved using CPNs which were often stolen SSNs from real victims. The Department of Justice states that the charges include bank fraud and conspiracy to commit bankfraud, wire fraud, making false statements about a bank, perjury and aggravated ID theft.
Evidently, it is not easy to be caught using a CPN.
What can you do instead of getting a CPN?
You may have thought about using a CPN or purchased one. You might be tempted to try something that claims to solve your credit problems. What is the best way forward now that we know that the U.S. Federal Government considers CPNs illegal?
First, don’t use a CPN you already own. It can’t legally be used to replace your SSN for credit applications. The CPN is not intended to be used for any illegal or fraudulent activity.
There is no quick solution for bad credit if you aren’t yet a CPN owner but are considering purchasing one. There are many legal and safe strategies you can use to fix your credit, and build up your credit so you can eventually apply for credit with your own social.
Get Better Credit with On-Time Payments
When it comes to building credit, the basic idea is to pay your bills on time. Your credit score is influenced by your payment history. A missed payment can have serious consequences for your credit score.
You might miss a payment occasionally due to an emergency or accident. This should not be a reason to ruin your credit rating. You can avoid late payments being reported to credit bureaus if you bring your account up within 30 days of the due date. If you are a reliable customer and have not missed any payments in the past, your creditor might be willing to forgive you for late payments and erase your record. You might also ask your lender to waive the late fee.
Seek out assistance from your creditor if you’re in financial hardship or can’t pay the full amount owed. Do not continue to skip payments. Your creditor could sell your account and report all missed payments. A collection on credit report can be more damaging than a late payment of 30 or 60 days. These are minor derogatory items.
Lower Your Credit Utilization Ratios
Your credit utilization ratio is the second most important part of your credit score. It is best to limit your credit utilization to a very small amount. For tips on maintaining low credit utilization, see our article individual usage vs. overall.
These two principles will help you rebuild your credit. After you have made significant progress in these areas, you can start thinking about ways to improve your Credit Age, Credit Mix, or new credit categories. We cover this in detail in ” How To Get an 850 credit Score.”
Eliminate errors from your credit report
Also, make sure you check your credit report for errors that could be affecting your score. If they are, dispute them with the credit agencies.
You will be able to apply with your real SSN for loans after your credit is in order. Good credit will be a benefit for your entire life. It’s worth the effort to improve your credit score as soon as you can.
However, although a CPN might seem like a quick way to clean credit, it is not worth the risk to go to prison or have a felony record.
Conclusions about CPNs
The most important and highest-ranking personal identification number in the United States is the Social Security number. These numbers are issued by the government and cannot be sold or bought on the open market. The government has defined misrepresenting your SSN as a federal offense. Therefore, using a CPN instead of your SSN could make you liable for a federal crime.
CPNs have been linked to a new type of fraud known as synthetic identity fraud. This is an emerging phenomenon. However, the government is quickly taking down illegal businesses that sell CPNs. These CPNs can be used to create a new identity and make a profit. Recent court cases from September 2020 show that fraudsters can face heavy penalties and even prison time.
Although many companies advertise that CPNs can be legalized, federal agencies have stated clearly that this is not true.
The government considers synthetic identity fraud a top national security threat. Federal agencies such as the FBI, Department of Homeland Security and the Postal Inspection Service, Secret Service, Department of State, Social Security Administration and Federal Trade Commission have created new task forces to investigate fraudulent activity and prosecute it.
CPNs: Why we don’t work with them
CPNs are not allowed to be used to apply for credit. We cannot help consumers who want to use them. Only people with valid SSNs can use our service. Before processing orders, we verify the SSNs of all our clients through third-party databases. We also check directly with the Social Security Administration to ensure that our clients are protected. We will not accept any CPN and we will not refund any orders that bypass our fraud filters.
There is no quick fix for your bad credit rating or debt. CPNs will not solve your problems and could land you in serious legal trouble. Instead, use your real SSN to work on credit.
