What Can a CPN Be Used For and Is It Legal?

Understanding the CPN

A Credit Privacy Number (CPN), sometimes referred to as a Consumer Protection Number, is a nine-digit number that proponents suggest can be used as an alternative identifier for financial transactions. This number is often promoted as a way for individuals to establish a new credit file, distinct from their Social Security Number (SSN).

However, a CPN is not issued or recognized by any government agency. It is not a legitimate substitute for an SSN, an Employer Identification Number (EIN), or an Individual Taxpayer Identification Number (ITIN) for official purposes such as credit applications or tax filings.

The creation of a CPN often involves manipulating existing SSNs or generating random nine-digit numbers that resemble SSNs. Some methods include using numbers that are not currently in use or altering legitimate SSNs to create a new, seemingly valid number. This practice aims to create a number that appears valid but lacks official backing or recognition from credit bureaus or financial institutions.

A CPN is a self-proclaimed identifier that holds no official standing for credit reporting or other financial purposes. Its existence stems from the desire to bypass established credit reporting systems, often by individuals seeking to avoid past financial difficulties.

Purported Uses and Marketing of CPNs

Individuals and companies promoting Credit Privacy Numbers often market them with various claims, suggesting they offer a fresh start or a means to bypass credit challenges. A primary purported use is the ability to obtain new lines of credit, such as credit cards, auto loans, and even mortgages, without relying on one’s Social Security Number. Marketers suggest that by using a CPN, an individual can apply for and receive financing that might otherwise be unattainable due to a poor credit history associated with their SSN.

Another common claim is that a CPN allows an individual to “start fresh” with a clean credit history, effectively bypassing past financial difficulties like bankruptcies, foreclosures, or significant debts. This narrative appeals to those seeking to escape the consequences of previous financial mismanagement.

CPNs are also marketed as a tool to “protect” one’s Social Security Number from identity theft by using an an alternative number for financial transactions. This claim suggests that using a CPN can reduce the risk of an SSN being compromised, despite the fact that SSNs are legally required for many financial and identification processes. The marketing implies a sense of security and anonymity that is not genuinely afforded by the use of an unofficial number.

Furthermore, CPNs are promoted for use in applications where an SSN is typically required, under the guise of an alternative identifier. This includes applications for utilities, apartments, or other services where a credit check is performed. The underlying message in CPN marketing often targets individuals who are struggling with credit, offering a seemingly simple solution to complex financial problems.

Legal Standing of CPNs for Credit Purposes

Using a Credit Privacy Number as a substitute for a Social Security Number on credit applications or any financial transaction where an SSN is legally required is unequivocally illegal. Federal law mandates the use of a true identifier for such purposes, and the creation or use of a CPN to misrepresent one’s identity or financial standing constitutes a serious offense. Credit bureaus and financial institutions do not recognize CPNs as legitimate identifiers for credit reporting.

The act of presenting a CPN as a legitimate identifier to obtain credit often falls under statutes related to identity theft and fraud. Making false statements on a loan or credit application is a federal crime under 18 U.S. Code § 1014, carrying penalties including fines and imprisonment. This statute specifically prohibits knowingly making any false statement or report for the purpose of influencing various financial institutions.

The creation and use of CPNs can lead to charges of mail fraud (18 U.S. Code § 1341) or wire fraud (18 U.S. Code § 1343) if the scheme involves postal services or electronic communications. These laws target schemes to defraud others of money or property through deceptive means. Engaging in a CPN scheme may also be prosecuted under 18 U.S. Code § 1028, related to fraud in connection with identification documents, if false identification is created or used.

Individuals involved in CPN schemes may also face charges for conspiracy to defraud the United States under 18 U.S. Code § 371 if they work with others to commit these illegal acts. This statute applies when two or more persons conspire to commit any offense against the United States or to defraud the United States.

Consequences of CPN Misuse

Individuals who create, sell, or use Credit Privacy Numbers illegally face severe practical and legal consequences. Engaging in such activities can lead to federal criminal charges, including identity theft, various forms of fraud, and conspiracy. These charges are pursued vigorously by federal law enforcement agencies, given the deceptive nature of CPN schemes and their potential to undermine the financial system.

Those convicted of federal crimes related to CPN misuse can face substantial prison sentences. For example, convictions for identity theft or making false statements on loan applications can result in imprisonment for several years, depending on the specific circumstances and the extent of the fraud. Penalties for mail or wire fraud also include significant terms of incarceration, often ranging from 20 years for basic offenses to up to 30 years if the fraud affects a financial institution.

Beyond imprisonment, individuals are typically subject to significant fines and orders for restitution. Fines can amount to tens of thousands or even hundreds of thousands of dollars, depending on the scale of the fraudulent activity. Restitution orders require the convicted individual to repay any money or assets fraudulently obtained, directly compensating the victims of the scheme.

Federal agencies such as the Federal Bureau of Investigation (FBI), the U.S. Secret Service, and the U.S. Postal Inspection Service actively investigate and prosecute CPN-related fraud. The use of a CPN to obtain credit can also severely damage an individual’s legitimate credit history, making it even more difficult to obtain credit legally in the future.