What Is a CPN Package and How Does It Work?

A Credit Privacy Number (CPN) is often presented as a nine-digit number for credit reporting, supposedly an alternative to a Social Security Number (SSN). This concept is marketed to those seeking to manage or rebuild credit. This article clarifies what a “CPN package” includes, its true nature, and the legal ramifications of its creation, sale, and use.

Understanding the Concept of a CPN

Sellers promote CPNs as nine-digit identification numbers for credit applications, supposedly replacing a Social Security Number (SSN). They are called Credit Privacy Numbers, Credit Protection Numbers, or Credit Profile Numbers, implying legitimacy and privacy. Proponents suggest CPNs offer a new credit identity or an alternative for individuals with poor credit histories, allowing them to separate past credit issues from a new profile.

CPN claims are misleading. The government does not issue or recognize CPNs as legitimate financial identifiers. Companies selling CPNs often falsely assert their legality, misapplying the Privacy Act of 1974. Legitimate credit applications require a Social Security Number or an Individual Taxpayer Identification Number (ITIN).

CPNs are often created using stolen Social Security Numbers from vulnerable individuals, or are entirely fabricated numbers, known as synthetic identity fraud. Using these numbers on credit applications deceives credit bureaus and lenders into believing a new, clean credit profile exists, masking the individual’s true credit history. This practice undermines credit reporting and lending systems.

What a CPN Package Typically Includes

A “CPN package” includes purported services and documents designed to create the illusion of a legitimate credit profile. These packages are marketed to individuals seeking rapid credit improvement or a fresh financial start. Sellers claim they help secure credit cards, auto loans, apartment rentals, and business financing.

CPN packages often include “tradelines.” These are credit accounts with positive payment histories and high credit limits, fraudulently added to the CPN’s new credit profile. The intent is to artificially inflate the CPN’s credit score and history by associating it with established accounts. Tradelines are obtained through unauthorized use of another person’s account or by fabricating credit history.

CPN packages also include a “credit sweep,” which disputes all negative credit report items simultaneously, often by falsely claiming identity theft. This aims to remove legitimate negative information, like late payments or collections, from the CPN’s credit report. Some packages include fabricated documents, such as pay stubs or identity scans, to support the false identity. The goal is to construct a deceptive credit profile that appears creditworthy to lenders, despite being based on fraudulent information or stolen identities.

The Illegality of CPNs and CPN Packages

Creating, selling, and using CPNs and CPN packages for credit are illegal and constitute federal fraud. A CPN has no legal basis as a substitute for an SSN or ITIN when applying for credit. Using a CPN to obtain credit is fraudulent, as it involves knowingly providing false information to lenders and credit bureaus.

Individuals creating, selling, or using CPNs risk severe legal consequences under federal law. One violated statute is 18 U.S.C. § 1028, addressing fraud related to identification documents. This law prohibits knowingly producing, transferring, or possessing false identification documents or another person’s identification with intent to defraud. Penalties range from fines to imprisonment for up to 15 years, with more severe sentences for specific serious crimes or if more than five identification documents are involved.

Another federal law implicated is 18 U.S.C. § 1014, which criminalizes making false statements on loan or credit applications to federally insured financial institutions. This statute covers knowingly providing inaccurate information or overvaluing property to influence a financial institution’s decision. Conviction can result in fines up to $1,000,000 and imprisonment for up to 30 years. This applies even without personal benefit, as intent to influence is sufficient.

CPN schemes also violate mail fraud (18 U.S.C. § 1341) and wire fraud (18 U.S.C. § 1343). Mail fraud applies when the U.S. Postal Service or other interstate carriers are used in a scheme to defraud. Wire fraud applies when electronic communications are used in interstate or foreign commerce to execute a fraudulent scheme. Both carry penalties of up to 20 years in federal prison and substantial fines. If the fraud affects a financial institution, the maximum prison sentence can increase to 30 years and fines can reach $1,000,000.

The “credit sweeps” bundled with CPN packages, which involve falsely claiming identity theft to remove negative credit items, also constitute fraud. Filing a false police report or fraud affidavit for this is a criminal offense. Even unknowingly using a stolen SSN as a CPN can lead to charges, as making false statements on a credit application or engaging in identity theft is illegal. Law enforcement, including the FBI, actively investigates these schemes, and involved individuals have faced felony charges, substantial fines, and lengthy prison sentences.