(WXYZ) — I've been tracking identity theft cases since mid-February involving 1099-K forms received in the mail. Those cases have prompted me to request documents from the Federal Trade Commission.
On March 4, I first told you about Monika Bailey of Oxford Township, who received five 1099-K forms in the mail in late January from the parent company of Cash App — Block Inc. — indicating she had to pay taxes on thousands of dollars of income in those accounts. This was alarming because she never had a Cash App account.
Watch below: Local woman learns her identity was stolen when she got a 1099-K; here's what to look out for
"What was your first call or email?" I asked Bailey.
"My first call was to 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 tried working with Cash App for three weeks to close those accounts and figure out what to do with the forms as the tax filing deadline was coming up. But, she kept hitting a brick wall, because she is not a Cash App customer, and they told her they could not help her.
Finally, she reached out to me and I worked with Block, Inc. and Cash App to expedite her case.
"In my case, we reached out to you and you were more than great and helped through all this," Bailey told me.
After her story aired, I received more than two dozen emails from people in her same boat, people like Nichole Mahoney of Troy and Lindsey Olsen of Rochester Hills.
They told me they were getting nowhere when they were calling Cash App's customer support team .
Watch below: 'I was honestly shocked and confused': 1099-K Identity Theft still happening; here's what to need to know
Last week, I asked Cash App to expedite their cases, along with 21 others. Olsen's case was resolved within hours, while Mahoney's case is still in process.
A Cash App spokesperson sent me this statement earlier this month.
"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)."
On March 22nd, a Cash App spokesperson sent me an additional statement:
"Cash App is aware of the recent reports involving fraudulent 1099-K forms and understands the impact this has caused. We are taking this issue seriously, actively working to resolve cases, and will reach out to all individuals who have submitted cases. Protecting customers from fraud and scams is a top priority for Cash App."
I have asked the company how Cash App can make it easier for these identity theft victims to reach its designated support team, a team that coincidentally was not put in place until after I initially contacted the company on Feb. 19.
I've even asked for special prompts to be added when you call their 1-800 number to help people who've received these 1099-Ks. I've also asked how the company is working to prevent more identity thieves from opening accounts using stolen information.
On March 17, through the Freedom of Information Act, I formally requested the number of complaints the Federal Trade Commission has received about Block, Inc. or Cash App related to 1099-Ks so far in 2025. The FTC responded with a list that has totaled more than 40.
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 or under FILER'S name) and follow the IRS procedures to report the fraud, which may or may not require an Identity Theft Affidavit or Form 14039.
For those who have received a 1099-K from Block, Inc. about a Cash App account you did not open, please call 1-800-969-1940 and ask for the designated team working with identity theft victims.
Many victims have been asking Cash App:
- to close the fraudulently-opened accounts
- to block my Social Security number from being used to open future Cash App accounts
- to send a corrected 1099-K to me and the IRS.
Victims should be prepared to provide identification and other personal information through a secure link squareup.sendsafely.com is providing.
Here are some of Cash App resources to help protect consumers:
Cash App and Square Team Up with the IRS to Combat Tax Fraud and Scams
How Cash App is Fighting Scams
How Cash App Is Staying Ahead of Online Impersonators
Cash App's Tech-Driven Approach to Combating Scams
Using AI to Identify and Prevent Fraud
The Growing Challenge of Scams in the Digital Age
How Cash App Is Helping Customers Outsmart Holiday Scams
