CPNs: The old scam with a new twist may become easier to combat – Part 1
A recent story by the Associated Press (AP) details a purportedly new identity theft scam involving “dormant” Social Security numbers (SSNs)—that is, numbers issued but not yet used for credit purposes. The article explains that so-called businesses, generally under the guise of a credit repair organization, sell these numbers by calling them credit privacy numbers (CPNs). They make false claims about your “right” to use a number other than your SSN when applying for credit. There are even how-to videos on the web touting the use of these numbers to obtain a “fresh start” for your credit – a way to hide your current bad credit rating and start anew. The problem with this is, according to the FTC, it’s completely illegal.
This is not a new scam. However, it has historically involved these “businesses” instructing individuals to obtain Employee Identification Numbers (EINs) through the IRS. What seems to be new is the identity theft twist, which involves using an actual SSN that has already been distributed to someone else.
Because these numbers—being referred to as CPNs at this point– are relatively new SSNs with no associated credit file, they typically belong to children under the age of 18. What makes them a particularly attractive target is the fact that parents obtain SSNs for their children shortly after birth but the number goes unused for credit purposes for at least 18 years. If a person uses a CPN that is actually someone else’s SSN, have they committed identity theft? That could be up for debate, as a recent U.S. Supreme Court case on an illegal immigration issue suggests it is not identity theft unless the person knowingly uses another’s SSN. Regardless of the legality, these actions will, in any event, create a credit history and quite possibly a slew of debts to be addressed by the authentic SSN owner-victim once the activity is discovered. In part two, we’ll discuss what can be done to help these individuals.
by Charlotte Rose
CIPP
Senior Investigator, Kroll Fraud Solutions
Tags: CPNs, credit repair, EINs, id theft of minors, identity theft, identity theft scam, IRS, SSN theft
