Auto Dealers Face Latest Scam - Credit Privacy Numbers
In a recent undercover investigative report by NBC 5 Investigates, Sgt. Darren A. Schlosser, a longtime friend of TIADA, worked with the news station in the Dallas-Fort Worth area to ...
In a recent undercover investigative report by NBC 5 Investigates, Sgt. Darren A. Schlosser, a longtime friend of TIADA, worked with the news station in the Dallas-Fort Worth area to better understand how Credit Privacy Numbers (CPNs) are being marketed and sold by some as a way to repair credit.
“This story is covering the fastest growing trend I see in the vehicle finance fraud world. Identity theft is easy to recognize as a crime, [but] a real person using a CPN is much more difficult to investigate. What makes it worse is that normally law-abiding citizens are being falsely convinced that a CPN is a legal way to repair credit,” said Schlosser.
The number of CPN cases is increasing, particularly among those who are applying for a car loan noted Schlosser. With an increase in online marketing, it is important to be weary of ads that encourage you to obtain a CPN. According to the report, some CPNs turn out to be stolen social security numbers with no credit history, a child's SSN for instance.
It is a federal crime to use a CPN on a credit application, so why are some otherwise law-abiding citizens falling victim to this scam? Some may simply want to keep their social security number private or start fresh by building new credit history, and then buy into the idea that the CPN is a good (and legal) option for them. However, when working with a credit repair company, it is important to keep an eye out for some red flags, outlined by the Federal Trade Commission here.
View the NBC Investigates report & Sgt. Schlosser's interview here.
Sgt. Schlosser has shown a commitment to educating dealers on spotting customer fraud. He was a speaker at the TIADA Conference & Expo in 2018 and 2019 and has presented at various local chapter meetings.