Since credit history plays a significant role in financial decisions, many clients are eager to improve their credit history. Unfortunately, some people try to apply for loans using Credit Privacy Numbers (CPNs). However, this practice is considered a form of synthetic fraud. In this article, we explain what CPNs are and why they are not a legitimate way to fix your credit history.
What Is a CPN
By “CPN,” we mean a nine-digit number that looks like a Social Security number -XXX-XX-XXXX. However, this number is not issued or recognized by the government, so using it on credit applications is not legal.
The CPN meaning is also referred to as a Credit Protection Number or a Credit Profile Number. These numbers are often sold to consumers with the promise of restoring their credit history. Yet, you are not entitled to submit a CPN to obtain credit – doing so conceals your true identity and therefore constitutes fraud. In practice, when you buy a CPN, you are effectively purchasing either a stolen SSN or a random nine-digit number that has no legal standing.
The Difference Between a CPN, SSN and ITIN
To be frank, confusion between SSN (Social Security Number), Individual Taxpayer Identification Number (TIN or ITIN), EIN (Employer Identification Number), and CPN (credit privacy number) is a common thing.
Since all of these numbers contain nine digits, it’s critical to differ these terms to avoid mistakes. We’ve a ready comparison table of the main aspects of each ID.
| ID Type | Meaning | Purpose | Government issued? | Format |
| Employer Identification Number | A distinct nine-digit identification number assigned to businesses by the Internal Revenue Service (IRS). | For a wide range of identification purposes, like applying for business credit or filing taxes | Yes | xx-xxxxxxx |
| Social Security Number (SSN) | A unique nine-digit identification number assigned by the Social Security Administration (SSA) to USA citizens, green card holders, and certain categories of immigrants. | For identification purposes, including filing taxes and applying for credit. | Yes | xxx-xx-xxxx |
| (Individual) Taxpayer Identification Number (TIN or ITIN) | A unique nine-digit identification number issued by the Internal Revenue Service (IRS) to noncitizens who are not eligible for a Social Security Number (SSN). | For a bunch of identification goals, such as filing taxes and applying for credit, for immigrants who are unable to obtain an SSN. | Yes | 9xx-xx-xxxx |
| Credit Privacy Number (CPN) | A fake nine-digit number – often a stolen SSN– typically sold by scammers. | Employed to mask someone’s real credit record on loan/credit applications, which is fraudulent. | No | xxx-xx-xxxx |
Warning Signs of CPN Fraud
If someone offers to sell you a Credit Profile Number (CPN), be cautious. You should avoid any company that guarantees a certain credit score within a short period of time. Remember – rebuilding your credit history takes time, and no one can promise specific results.
Also, keep in mind that no legitimate credit repair company is allowed to charge you upfront fees. Pay attention to what you’re being asked to do. Many fraudulent organizations may suggest providing false personal information, such as changing your phone number, address, or even obtaining a new driver’s license – these are all major red flags.
Scammers also tend to avoid written contracts to escape responsibility. They may even advise you to prevent financial bureaus, which is entirely wrong. Always remember – legitimate credit repair companies are required to inform you of your rights, including your right to access your credit report for free, at any time.
Note that some companies can detect CPNs using specialized verification services. In particular, SSN checks are often used to match a number against Social Security Administration records – CPNs will not pass this verification. There is also a method that checks the SSA’s main Death File; such services can compare an SSN against that file to determine whether it was assigned to a deceased person.
What to Do if You’ve Been Sold a CPN?
After explaining the CPN definition, it’s time to consider your next steps if you’ve already purchased one. The first and most important thing to remember is not to use it, as doing so constitutes fraud. You should report it to protect yourself and others who might become victims.
Where to report it? You can contact the Federal Trade Commission (FTC), file a fraud complaint with your state attorney general, or review the fraud response options listed on the US Department of Justice website.
Additionally, you can contact your local police department to report potential fraud. While the police don’t typically handle such cases directly, they can issue public service announcements (PSAs) and raise awareness within your community about CPN-related scams.
Tips to Avoid CPN Related Scams
Don’t search for how to obtain a CPN number – focus on how to avoid CPN-related scams instead. Here are some important tips:
- Avoid anyone offering “new credit identity” services.
- Don’t work with people who ask you to submit false information on credit applications.
- Steer clear of anyone promising a quick fix for bad credit.
The safest move is to consult a lawyer before agreeing to any illegal methods to repair your credit.
Ways to Improve Your Banking History
Don’t take the risk of searching for how to get a CPN number from the IRS – instead, focus on rebuilding your credit history through legitimate means. Here are a few effective ways for this:
- Make payments in advance. Schedule automatic transactions or set up reminders to avoid missed due dates.
- Keep your credit utilization low. High balances on your credit cards can increase your utilization ratio and lower your credit score.
- Apply only for the credit you truly need. Submitting multiple financial applications can make your financial situation unstable in no time.
- Stay informed about your banking (especially loan) reports. Constant checking helps identify mistakes or inconsistencies. If you spot anything suspicious, report it and correct it without delay.
However, the smartest move is to seek professional credit counseling from our legal team. Our experts can explain to you the CPN definition and help you manage your debts and improve your credit history safely and effectively.