New Credit Profile Scam - Credit Repair Forum from Creditnet
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  1. #1
    gcapello is offline Newbie
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    Jun 2001
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    I have a question. I have received a lot of requests to "establish a new credit profile" for me. From what I have been told, this establishes an EIN number for you which looks like a SS# and can be used for credit. I have been told that this is illegal. However, my question is why exactly is it illegal? Can't I incorporate myself and then get credit for my business? As long as I file my taxes properly, I do not see why this is an issue. Can someone please explain the legality of it to me.


    Thanks!

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  3. #2
    Pat
    Pat is offline Senior Member
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    Re: New Credit Profile Scam

    It's not all that new :) It's called File Segregation, and it is illegal. Search for file segregation on the FTC website (www.ftc.gov) or follow this link (http://www.ftc.gov/bcp/conline/pubs/credit/creditid.htm). You'll find plenty of reading material explaining the scheme.
    ------------------------------------------
    Pat - Back in the 700 Club...

    If you think nobody cares if you're alive, try missing a couple of car payments.

  4. #3
    godaddyo is offline Senior Member
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    Re: New Credit Profile Scam

    That stuff is old news. It could get you in so much trouble. The only thing that can be successful is using a new SS#. I am not going to go into how you should get one, but you are still at risk when using one of those. The reasons why these scams are illegal are too many to discuss here.I will give you a few:

    1) it is illegal to use a fake SS# and put it on any thing that is send thru the postal system. This would constitute a Federal Crime. If you did obtain one, you would definately want to lay low, really low.

    2)Using it to obtain government services or filing a tax return would also constitute fraud...

    These are two reasons that you would want to stay away from them, if at all possible. I would think that unless you totally needed to change your identity for some reason, I would let this idea go. To risky not enough benifit, too much jail time.....
    GoDaddyo
    "Guns cause crime like wet sidewalks cause rain, cameras cause pornography, and spoons cause Rosie to be fat and stupid."

  5. #4
    GEORGE is offline Senior Member
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    Re: New Credit Profile Scam

    ANOTHER PROBLEM WITH A NEW SS# IS LOSING ALL YOUR PAYMENTS TOWARD YOUR SOCIAL SECURITY RETIREMENT FUND...

    IF THE SOCIAL SECURITY AGREE TO GIVE YOU A NEW ACCOUNT NUMBER...THEY WILL TRANSFER ALL INFORMATION, AND YOU DON'T LOSE YOUR MONEY...IF YOU DO IT ILLEGALLY YOU WILL LOSE IT ALL AND MAYBE YOUR FREEDOM TOO...JAIL!!!!

  6. #5
    bbauer is offline Banned
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    Re: New Credit Profile Scam

    All those who have given you their reasons why this is a bad idea have my hearty approval of what they have said.
    Each and every one had great points they brought out, especially George when he mentioned the loss of all your social security benefits. Many years ago, one could get a whole new identity and do whatever with it, including deliberately bilk creditors out of horrendous amounts of money. The problem was so rife that 60 minutes dedicated a whole show to the expose back in the summer of 1970. They went through the process step by step on how the new IDs were being obtained, how the scam artists quickly created false credit reports and proceeded to get a big load of credit cards in an extremely short period of time and then spend them to the max and move on to the next new ID only to do it all over again. The program left out not one single detail of how to get the job done. However, it was also easy to see that if someone actually did follow their instructions to the letter, a few important steps they didn't take to insure their security and safety in committing their criminal acts would surely lead to their downfall and the plan would fall flat on it's face. At the time, there were few if any laws against puling such stunts. It's a whole new ballgame today, and if you did the same thing today, you'd get a nice long prison stretch for even trying it.

    However, seems to me that they did not address one of your questions, so I will attempt to do that.

    You asked why it would be illegal to get a new ID in the manner that is suggested by those soliciting you.

    It is not illegal for you to do so. It is, in fact, perfectly legal and it is done every day by untold numbers of people who have no intention of playing any games with the numbers, but rather request them for the purpose for which they were intended, business reasons. If you get one and you use it correctly, there is no problem whatsoever.

    If you get one and use it incorrectly, you just might have some grave problems as others have told you. They were not wrong.

  7. #6
    godaddyo is offline Senior Member
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    Re: New Credit Profile Scam

    Yes using it as a tax id number=LEGAL
    using it as a replacement for SS#=ILLEGAL
    GoDaddyo
    "Guns cause crime like wet sidewalks cause rain, cameras cause pornography, and spoons cause Rosie to be fat and stupid."

  8. #7
    gcapello is offline Newbie
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    Re: New Credit Profile Scam

    Ok, that makes sense. I guess my question is as follows. Can someone legally obtain credit for their business using their tax ID#?

  9. #8
    Hope is offline Senior Member
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    Re: New Credit Profile Scam

    Yes, legally, but I suspect that you're overlooking an important aspect.

    Please correct if I'm wrong, but I believe you're assuming that you could simply "incorporate", receive an EIN for your business and then apply for credit in the name of this new and unblemished entity.

    True -- BUT -- first realize that because your newly formed corporation has no credit history of its own, creditors would simply and necessarily have to rely on the credit history of the business owner (or president, CEO, etc.)

    That would be you and your personal credit history. So you're back at square one.

    Better to focus on cleaning up your own credit history.

    Hope
    Hope
    ____________________________________
    In God we trust... All others pay cash.

  10. #9
    godaddyo is offline Senior Member
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    Re: New Credit Profile Scam

    Yes,
    the banks usually like to have something for collateral from the business itself.. If you have some serious business assets to borrow against, you could obtain credit.
    GoDaddyo
    "Guns cause crime like wet sidewalks cause rain, cameras cause pornography, and spoons cause Rosie to be fat and stupid."

  11. #10
    Crdt Dfnse is offline Registered User
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    Re: New Credit Profile Scam

    Originally posted by gcapello

    Can someone legally obtain credit for their business using their tax ID#?
    GCapello:
    Of Course. Although having worked with state lead investigations regarding this practice, in conjunction with Federal authorities. I’m certain the FTC looks upon this method (EIN manipulation) as file segregation; an illegal act. It becomes illegal if your business intent is to deceive creditors, and that’s what those “Repackaging American” (MLM) programs are about – rudimentarily deception.

    Check out this link: http://www.ftc.gov/bcp/conline/pubs/credit/creditid.htm

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