What Are CPNs and Are They Legal to Use?

Credit Privacy Numbers (CPNs) are often presented as alternatives to Social Security Numbers (SSNs) for credit-related activities, but their legitimacy is widely disputed and they are frequently associated with fraudulent schemes. While the existence of a CPN itself might not be illegal, using one on credit applications or official documents is unlawful and can lead to severe consequences. The concept of a CPN is often marketed to individuals seeking to bypass a poor credit history or to protect their privacy. This practice preys on those in financial distress or those desiring a “fresh start” with their credit.

Understanding Credit Privacy Numbers (CPNs)

CPNs are commonly marketed as a “secondary credit profile,” “consumer protection number,” or “financial privacy number.” Promoters suggest these nine-digit numbers can be used in place of an SSN for credit applications, implying they offer a clean slate for those with unfavorable credit histories.

These numbers are presented as a way to establish a new credit identity, allowing individuals to access loans, credit cards, or even rental agreements that might otherwise be unavailable. Companies selling CPNs frequently claim they are legitimate, sometimes even citing the Privacy Act of 1974 to suggest legal backing. This marketing creates a false sense of security and legitimacy around using a CPN.

The Illicit Origin of CPNs

CPNs are not legitimate government-issued identification numbers. Unlike Social Security Numbers (SSNs) issued by the Social Security Administration or Individual Taxpayer Identification Numbers (ITINs) issued by the IRS, no government agency issues or recognizes CPNs for financial or credit purposes. The acquisition of these numbers often involves identity theft or fraud.

Many CPNs are actually stolen SSNs, typically from vulnerable populations such as children, deceased individuals, or incarcerated persons. In other instances, CPNs are fabricated numbers that resemble SSNs but have no legitimate basis. Using a CPN is effectively employing a fraudulent or stolen identity, as it misrepresents one’s true financial standing and personal identification.

Legal Exposure from CPN Use

The creation, sale, and use of CPNs can lead to severe legal violations under federal law. Applying for credit, loans, or services using a CPN constitutes fraud, including loan fraud, credit fraud, or bank fraud. This misrepresentation of identity and financial history is a federal crime. Even if an individual is unaware that a CPN is stolen or fraudulent, using it carries significant legal risks, as ignorance of the law is generally not a valid defense.

Specific federal statutes that may be violated include identity theft (e.g., 18 U.S. Code 1028), which can result in fines and imprisonment for up to 30 years. Mail fraud (18 U.S. Code 1341) and wire fraud (18 U.S. Code 1343) are also applicable if electronic communications or mail are used to execute the fraudulent scheme, carrying penalties such as fines and imprisonment up to 20 years, or up to 30 years if a financial institution is affected. Additionally, making false statements to federal agencies (e.g., 18 U.S. Code 1001) is a federal offense. Those involved in CPN schemes, whether creators, sellers, or users, face potential fines and substantial prison sentences.