How to Obtain a CPN? The Serious Legal Risks
Explore the reality of Credit Privacy Numbers (CPNs). Understand why they are not legitimate and the significant legal dangers associated with their use.
Credit Privacy Numbers (CPNs) are marketed as a means to establish a new credit identity. However, CPNs are not legitimate government-issued identifiers for credit purposes. Their creation and use are associated with fraudulent activities, carrying substantial legal risks for anyone involved.
Understanding Credit Privacy Numbers
Credit Privacy Numbers are promoted as a quick fix for credit repair. These nine-digit numbers are formatted to resemble a Social Security Number (SSN). Companies selling CPNs might use various names, such as credit protection numbers or credit profile numbers, to enhance their deceptive marketing.
CPNs are not recognized or issued by any government agency. Legitimate identification numbers for financial and tax purposes include the Social Security Number (SSN), Employer Identification Numbers (EIN) for businesses, and Individual Taxpayer Identification Numbers (ITIN) for those ineligible for an SSN. Unlike these official identifiers, CPNs lack legal backing or government authorization.
CPNs are created through illegal means, including the use of stolen Social Security Numbers or fabricated numbers. Scammers obtain SSNs from vulnerable populations, selling them as CPNs and making purchasers unwitting participants in identity theft. Other CPNs are randomly generated nine-digit numbers marketed as legitimate. Companies selling CPNs often charge significant fees, preying on individuals desperate for credit improvement.
The Allure of a New Financial Identity
Individuals struggling with poor credit scores, overwhelming debt, or a history of bankruptcy often seek immediate solutions to access loans, credit cards, or housing. The appeal of a “fresh start” with a new financial identity can seem compelling when legitimate credit-building avenues appear slow or inaccessible.
Deceptive advertising from unscrupulous companies exploits this desire for quick financial relief. These entities promote CPNs as a legal workaround, promising to bypass previous credit issues and open doors to new lending opportunities. Individuals might mistakenly believe CPNs offer a legitimate path to financial recovery, failing to recognize the inherent illegalities and the potential for grave consequences.
The Serious Legal Ramifications
Attempting to obtain or use a Credit Privacy Number carries severe legal consequences under federal law. There are no legitimate steps to acquire a CPN because the act of using one for financial purposes is inherently fraudulent. Individuals who engage in such activities can face prosecution for multiple federal offenses, leading to substantial fines and lengthy prison sentences.
Using a CPN on credit applications often involves schemes that fall under federal fraud statutes. For instance, Mail Fraud (18 U.S. Code 1341) prohibits schemes to defraud using the U.S. Postal Service or interstate carriers. A conviction can result in imprisonment for up to 20 years and significant fines, increasing to 30 years and a $1,000,000 fine if a financial institution is affected. Wire Fraud (18 U.S. Code 1343) applies when electronic communications, such as phone calls or internet transmissions, are used in a fraudulent scheme, carrying comparable penalties.
When CPNs are used to obtain loans or credit from financial institutions, individuals may be charged with Bank Fraud (18 U.S. Code 1344). This statute covers any scheme to defraud a financial institution or to obtain its assets through false pretenses. Convictions can lead to imprisonment for up to 30 years and fines of up to $1,000,000. Additionally, making false statements on credit or loan applications to influence a financial institution’s actions constitutes a violation of 18 U.S. Code 1014, which can also result in up to 30 years in prison and a fine of up to $1,000,000.
If a CPN is derived from a stolen Social Security Number, individuals may face Identity Theft charges (18 U.S. Code 1028). Penalties include imprisonment for up to 15 years and fines, extending to 20 years if connected to certain serious underlying felonies. Using another person’s identification during the commission of certain felonies can result in Aggravated Identity Theft charges (18 U.S. Code 1028A). This charge carries a mandatory additional two-year prison sentence that must be served consecutively to any other punishment for the underlying felony.
Beyond criminal penalties, using a CPN can lead to a permanent criminal record, which significantly hinders future opportunities for legitimate credit, housing, and employment. The use of CPNs not only exposes the user to legal risks but also harms the unsuspecting individuals whose legitimate SSNs may have been compromised to create these fraudulent numbers, potentially jeopardizing their financial future.
Building Credit Legally and Responsibly
Improving one’s credit standing is a process that requires consistent, responsible financial behavior rather than quick, illegal shortcuts. A foundational step involves obtaining and reviewing credit reports from the three major credit bureaus: Equifax, Experian, and TransUnion. Individuals can request free copies of their reports annually to identify and dispute any inaccuracies or fraudulent entries that might be impacting their scores.
Several legitimate strategies can help establish or rebuild a positive credit history. Secured credit cards, which require an upfront cash deposit as collateral, provide a way to demonstrate responsible credit use without significant risk to the issuer. Regular, on-time payments on these cards can gradually build a positive payment history. Another effective tool is a credit builder loan, where a financial institution holds the loan amount in a savings account while the borrower makes regular payments, which are reported to credit bureaus.
Becoming an authorized user on another person’s credit card account can also contribute to credit building, provided the primary account holder manages their credit responsibly. Timely payments on all existing debts, including utility bills, rent, and loan installments, are paramount, as payment history is a significant factor in credit scoring. Maintaining low credit utilization, ideally below 30% of available credit, demonstrates responsible management and positively influences credit scores. Additionally, diversifying the types of credit accounts, such as having a mix of revolving credit and installment loans, can further strengthen a credit profile over time.
For personalized guidance and support, consulting with a non-profit credit counseling agency or a certified financial advisor is a prudent step. These professionals can help develop a tailored plan for debt management and credit improvement. It is important to recognize that building credit responsibly is a gradual process that demands patience and persistent adherence to sound financial practices.