1. Credit Privacy Numbers and Identity Fraud Chris Montuori Director, Product Management Clarity Services

2. Get a “New Credit Identity”

3. CPN Claims “It helps to protect one's Social Security Number (SSN) from various internet threats such as identity theft.” “These numbers can be used in place of the Social Security Number (SSN) when an individual applies for credit.” “Celebrities use them” “Can be used to repair or obtain credit” “Use it to opening a bank accounts, credit cards, personal loans, auto loans, apartments, utilities, cable, cell phones, etc.”

4. Credit Privacy Numbers (CPNs) are nine-digit file numbers that follow the same algorithm as Social Security Account Numbers (SSNs) that you can use in lieu of your social security number when applying for credit! What is a CPN?

5. Other names for CPN Credit Profile Number Credit Privacy Number Secondary Credit Number CPN Google trends

6. Instructions on use #1

7. Instructions on use #2

8. Instructions on use #3

9. Laws that make CPNs possible Title 5, Sec­tion 7 of Pub­li­ca­tion Law 93–579 of Government Orga­ni­za­tion and Employee Act: (a)(1) It shall be unlaw­ful for any Fed­eral, State or Local Gov­ern­ment Agency to deny any individual any right, ben­e­fit, or priv­i­lege pro­vided by law because of such individual’s refusal to dis­close his or her Social Secu­rity Account Number. https://www.justice.gov/opcl/file/844481/download

10. Good news, it is illegal It’s a federal crime to:  Lie on a credit or loan application  Misrepresent your Social Security number  Obtain an EIN from the IRS under false pretenses Using it in place of your own SSN will be Aggravated Identity Theft under 18 USC § 1028A. Likely to constitute civil fraud in many states

11. During a 2011 Social Security Administration field hearing, Robert Feldt, Special Agent-in-charge of the Social Security Administration Office of the Inspector General’s Dallas Field Division said, “Numerous unscrupulous agencies and organizations are providing CPNs—also known as Credit Profile Numbers and Credit Protection Numbers—for a fee, as a method of creating a new, separate credit file for individuals with low credit scores, bankruptcy, and slow or late payments on their current credit record. Websites offering CPNs advertise a new credit file with the use of a CPN, at costs ranging from about $40 to as much as $3,500. Despite what many of these credit repair Websites imply, consumers should know that CPNs are not legal.” http://oig.ssa.gov/newsroom/congressional-testimony/field-hearing-social-security- numbers-and-idenity-theft Good news, it is illegal

12. History of CPNs FTC warns of scams using EIN in place of SSN in November 1992 Also known as “File Segregation” EIN – Employer Identification Number. Nine digit number used by businesses to report financial information to IRS https://babel.hathitrust.org/cgi/pt?id=umn.31951d0153 3720h;view=1up;seq=1

13. Synthetic Identity Theft Synthetic Identity Theft - the combination of fake and real consumer identifying information or all false information to create a new fictional or partially fabricated identity. There are an estimated 20 million SSNs in credit bureau files associated with 4 or more names. It is estimated that synthetic identity fraud now accounts for 85 percent of all identity fraud in the United States

14. Sources of CPNs Children – SSNs are issued shortly after birth then not used for 18 years Incarcerated – Individuals incarcerated for a number of years often have clean credit file Elderly – unlike children and the incarcerated, the elderly will have long credit histories but are not active Just plain made up “The OIG reported there were 6.5 million number holders age 112 or older who did not have death information on their record in the SSA’s Numident, even though investigators found significant evidence that suggests the 6.5 million supercentenarians are deceased.” https://verafin.com/2015/06/10-ploys-fraudsters-use-to-commit-identity- fraud/?nabt=1&utm_referrer=https%3A%2F%2Fwww.google.com%2F

15. CPN Costs

16. Someone Else’s Problem No Credit History = No new Credit = No problem. Right? No Credit History = No new Credit = No problem. Right?

17. Authorized Users An “Authorized User” is a person who is permitted by a revolving account holder to use an account without being legally liable for any charges incurred. The 1974 Equal Credit Opportunity Act requires that information of spousal authorized user account be reported to the credit bureaus and considered when lenders evaluate credit history Does not require the creditor to indicate Authorized User’s relationship https://www.federalreserve.gov/pubs/feds/2010/201023/201023pap.pdf Beginning in 2007, companies began to emerge to help borrowers with poor credit history piggyback on the good credit history of others.

18. Tradelines For Sale Tradelines are lines of credit on your credit report  Credit Card  Home Loan  Auto Loan  Student Loan Authorized User does not have access to account. “ This process is also know as “credit piggybacking”.” Adding an aged, high limit tradeline to your credit report will instantly increase your credit score

19. Tradelines For Sale http://portal.creditkinnect.com/TradelineList.aspx

20. CPN Warning Signs New address New phone number (typically non fixed VOIP) New email address Legal name Date of Birth New Authorized User Accounts o High limit o Possibly older than credit file

21. Most abused SSN ever In 1938, wallet manufacturer E.H. Ferree used the Social Security Number of Mrs. Hilda Schrader Whitcher, the secretary to the Treasurer, to show how the sample card would fit in their wallets. At the peak in 1943, 5,755 people were using her SSN In all, over 40,000 people reported this as their SSN. As late as 1977, 12 people were still using this SSN as their own

22. Tradelines For Sale http://www.tradelinewarehouse.com/we-buy-tradelines/