What Is a Credit Privacy Number and Is It Legal?

A Credit Privacy Number (CPN) is marketed as a nine-digit identification number for establishing a separate financial identity. It is often presented as an alternative to a Social Security Number (SSN) for credit reporting, purportedly helping individuals with poor credit obtain new credit.

Defining a Credit Privacy Number

A Credit Privacy Number (CPN) is a nine-digit number resembling a Social Security Number (SSN). These numbers are marketed as a way to create a new credit profile, distinct from one linked to an SSN. The purported purpose is to allow individuals to apply for financial products without their past credit history impacting new applications. Sellers often promote CPNs as a solution for those seeking to overcome a poor credit score.

The Illegality and Risks of Using CPNs

Credit Privacy Numbers are not recognized as legitimate identifiers by federal agencies, credit bureaus, or financial institutions. Using a CPN for credit applications is considered credit fraud. Such schemes often involve stolen Social Security Numbers, fabricated numbers, or misrepresenting existing SSNs. This practice is illegal and carries significant legal repercussions for anyone involved.

Individuals who create, sell, or use CPNs can face severe federal charges. These may include identity theft under 18 U.S. Code § 1028, leading to imprisonment for up to 15 years and substantial fines. Making false statements to a financial institution or federal agency, as outlined in 18 U.S. Code § 1001, can result in fines up to $250,000 and imprisonment for up to five years. Engaging in these activities can lead to a criminal record, making it difficult to secure legitimate employment or housing.

Legitimate Credit Identification

In the United States, the Social Security Number (SSN) serves as the standard and legally recognized identifier for credit reporting purposes. Credit bureaus utilize an individual’s SSN to accurately track their financial history, including payment records, debts, and credit utilization, to build a comprehensive credit profile. This established system ensures that credit extended to individuals is based on a verifiable financial background.

For non-citizens who may not have an SSN but need to establish credit, the Individual Taxpayer Identification Number (ITIN) is another legitimate option. An ITIN is a tax processing number issued by the Internal Revenue Service (IRS) to individuals who are required to have a U.S. taxpayer identification number but do not have, and are not eligible to obtain, an SSN. Both the SSN and ITIN are official identifiers that allow individuals to participate in the financial system legitimately.

Protecting Your Personal Information

Safeguarding personal information, particularly your Social Security Number, prevents identity theft and financial fraud. Regularly monitoring your credit reports identifies unauthorized activity or accounts opened in your name. You can obtain a free copy of your credit report from each of the three major credit bureaus annually through AnnualCreditReport.com.

Exercising caution when sharing personal details, especially online or over the phone, reduces vulnerability to scams. Using strong, unique passwords for all online accounts and enabling multi-factor authentication adds layers of security. Understanding common identity theft schemes, such as phishing emails or imposter calls, allows individuals to recognize and avoid fraudulent attempts to obtain their information.