(WXYZ) — An Oxford Township woman's life was upended when she received five tax forms in the mail, showing she'd received a bunch of money through a payment app – an app she'd never actually used.
It was an identity theft dilemma, and with the tax filing deadline approaching, she didn't know what to do with all of the forms or if she'd have to pay taxes on the money the thieves had received.
When we heard about her problem, I started investigating, and it got a response from the payment app's parent company.
If you've sold items on online marketplaces or have a gig job where you're paid through an app, you may receive a 1099-K in the mail.
Monika Bailey of Oxford Township received five of these tax forms at the end of January, but there was a problem.
"I went and got the mail one day, was opening it. And I realized I received five 1099-K forms from a company called Block, Inc. I had never heard of Block, Inc. before. After doing some more research, I realized it was Cash App," Bailey said.
Bailey said the forms indicated someone had opened up not one, but five Cash App accounts using her name, Social Security number, and her old address where she lived 10 months ago.
"So, how much income did these forms allege you had received last year?" I asked.
"They totaled up to about $7,500 between the five of them. And then I'd be responsible for paying that money, the taxes on that money," she said.
"And you don't have a side gig or business where you use any peer-to-peer payment apps?" I asked.
"None," she replied.
Monika, who is a pharmacy tech, first called Cash App.
The guy I got a hold of told me that if I thought they were fraudulent, I should just throw them away. And I'm like, 'I can't just throw away these IRS forms,'" she said. "I said,' I'll get in trouble if I don't file these at tax time.'"
She's right. But because she did not have an account with Cash App, the company would not help her, even after weeks of trying to argue her case.
Bottom line, she wanted the company to shut down these five accounts.
So, I contacted Block, Inc. asking the parent company of Cash App to close all five of the Cash App accounts that were opened using her stolen personal information.
Two days later, Monika received an email from Cash App support.
"Whatever magic you did within two days, this whole thing was taken care of," she said.
"And when you say taken care of, what did Cash App do?" I asked.
"They looked into it, and they said it was identity theft. They shut down all five accounts. They sent everything in to the IRS that would be straightened out for my taxes this year. And they also had me put a block on my social security number through Cash App so nobody could open another Cash App account in my social security number. So you did magic," Bailey said.
If you receive a form 1099-K due to fraudulent concerns, here are the steps to take, according to the FBI.
- Right away, monitor your credit reports with the major credit bureaus for any suspicious activity and freeze your credit for added protection
- Then, file a police report with your local law enforcement agency
- File a complaint with the Internet Crime Complaint Center
- Report the identity theft to the Federal Trade Commission
You may need all of that documentation when you do the next step:
- Contact the issuer of the 1099-K form (which is in the upper left corner) and follow the IRS procedures to report the fraud, which may require an Identity Theft Affidavit or Form 14039.
A Cash App spokesperson sent me a statement that reads: If you believe you have fallen victim to fraud or a scam, you should contact Cash App Support through the app, website, or by phone (1-800-969-1940)."
"In my case, we reached out to you and you were more than great and helped through all this," Bailey told me.
I want to thank Monika for sharing her story.
Her case required her to file Identity Theft Affidavits or Form 14039 when she files a tax return, but sometimes that is not required. Consult a tax professional if you have questions.
Monika also had to contact the IRS to get an identity protection PINto protect her tax account.
If you think your identity has been stolen or you've been the target of a scam, you can email me at asmith@wxyz.com.
