In recent years, rental scams have become increasingly common, and one of the tools scammers use is a CPN or credit privacy number. A credit privacy number (CPN), also known as a credit profile number or credit protection number, is a nine-digit number formatted like a Social Security number (SSN). These numbers are often marketed to consumers as a way to conceal a negative credit history or bankruptcy. Some companies that sell CPNs may claim you can use them in place of your SSN to apply for credit and establish a new credit identity. However, CPNs are often used in fraudulent schemes, including rental scams, and it’s illegal.
How CPNs Are Used in Rental Scams
One common type of rental scam involves scammers posing as landlords or property managers and advertising a property for rent. They typically ask prospective tenants to provide personal and financial information, such as their Social Security number and bank account details, under the pretense of running a credit check.
In some cases, scammers may actually rent out the property to an unsuspecting tenant but demand a large deposit or upfront fee to secure the rental. Once the money is paid, the scammer disappears, leaving the tenant without a rental or money.
Scammers may use this information to apply for credit using a CPN instead of conducting a legitimate credit check.
Scammers may advertise CPN services to prospective tenants for an additional fee while making claims that a CPN can help them possibly bypass credit checks or that they will create new credit tradelines using a CPN and secure a rental property more easily.
However, using a CPN to obtain credit or commit rental fraud is illegal and can have serious legal consequences.
Why CPNs Are Used in Rental Scams
CPNs are attractive to scammers. CPNs can be used to establish new credit identities without needing a Social Security number. As mentioned, this makes it easier for scammers to create new tradelines for credit checks and rental application requirements. Additionally, the government does not regulate CPNs, making them an appealing tool for those with low to no credit scores.
How to Protect Yourself from Rental Scams
The best way to protect yourself from rental scams is to be cautious and do your research. Here are some tips to help you avoid rental scams:
- Only provide personal or financial information if you know the person or company is legitimate.
- Research the property and the landlord or property manager before making any payments or signing any contracts.
- Verify that the person or company is registered with the state and has a valid business license.
- Be wary of companies or individuals charging a service fee for “helping you” fix/repair your credit or even create supporting documents to obtain a rental property.
- Trust your instincts. If something seems too good to be true, it probably is.
- If someone produces, modifies, or holds a fake document, they are committing forgery, resulting in a prison sentence, a fine determined by the judge, or both. It is illegal, and it’s a crime.
- Obtaining property by false pretenses is a felony.
Take Away
It's essential to be aware that rental scams and rental fraud exist. Instead, it's best to focus on improving your credit score and applying for a rental property through legitimate means.
Additionally, verify the legitimacy of a landlord or property manager before providing any personal or financial information, and trust your instincts if something seems suspicious.
Remember, committing forgery and fraud is not the solution to finding suitable housing.