Received An eBay 1099-K But Never Sold On The Platform?

Liz Morton
Liz Morton


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UPDATE 1-18-23

As 1099-K forms for tax year 2022 start mailing out this month, reports of accounts using stolen identities may start to pop up again.

If you receive a 1099-K from eBay for an account you did not knowingly create or use, I want to hear from you!

Requests for confidentiality will absolutely be respected.

Message me on Twitter @ValueAddedRS and Facebook @ValueAddedResource or email me at liz@valueaddedresource.net


UPDATE 4-18-22

Today is tax day, so it seemed an appropriate time for an update. After 2 months of research, I can confidently say stolen personal identity information is being used to create fraudulent accounts to sell on eBay and eBay's Trust & Safety and Managed Payments departments did not catch them despite Know Your Customer (KYC) and anti-money laundering verification requirements.

eBay support did finally receive the boilerplate responses from the legal department to forward to affected victims - acknowledging that these accounts were fraudulent, but then putting all the responsibility on the identity theft victim to pursue the matter with law enforcement.

Multiple victims forwarded me screenshots of the response from eBay and they were all exactly the same.

While eBay told victims who contacted them that the forms would not be sent to the IRS, many are still concerned this fraudulent information could cause an audit or other problems for them.

And what about victims who were not able to contact eBay support? If an account wasn't reported to them and shut down by Trust & Safety, presumably the 1099-K may still have been sent to the IRS.

I collected information from 76 individual reports either publicly across social media and the eBay community or privately through email or messages. I fully believe this is just a very small drop in the bucket, however, here's what I was able to glean from those reports.

Financial scope - 41/76 reports mentioned dollar amounts from the 1099K - total ~ $750,000 with the highest one reported at $180,000. Out of the 41 with dollar amounts, 26 of them were $10,000 or above.

These fraudulent accounts were doing significant high volume/high dollar sales for months without being flagged or caught by eBay.

SSN: 16 said the last 4 digits of the social security number does not match theirs, 12 say it does match, 48 did not answer.

Names: Most names match, with the exception of 3 that had the correct first name but a maiden name or last name from a previous marriage that has changed.

Addresses: Most addresses match, 2 were old addresses (mail forwarded), and 2 were partial address matches where either an apartment number was missing or had been added.

Several reports also indicated they had received returned items at their addresses, likely due to their address also being used for the default return address on these fraudulent accounts.

Fraudulent eBay ID: I verified 16 of the account IDs that were not recognized by the receiver of the 1099K.

All 16 accounts fit the common pattern eBay uses when automatically generating a user ID for a new account (typically a few letters from first name, a few letters from last name and some numbers).

The oldest of those accounts was created in February 2020 and was still very active with over 6,000 listings (eBay finally shut this account down a month after the receiver of the fraudulent 1099-K reported it).

The accounts were selling a variety of items, but print on demand products like t-shirts and coffee mugs appeared to be the most popular.

Reports have fallen off for now, however I expect we may see more bubble up if some of these victims do start to get audited.

Of course, I also expect we'll see a spike of reports happen in January/February 2023 - unless of course eBay finally decides to get serious about proactively addressing account security, verification, and rampant fraud on the platform.


UPDATE 2-21-22

I'm continuing to investigate and document more reports as they come in as well as eBay's response (or lack thereof) - stay tuned for results!

Thanks to WebRetailer and eSeller365 for helping me get the word out!

UPDATE 2-12-22

As of today, I've collected 54 reports across social media, eBay community, and people who have reached out directly. All of these reports say the account ID listed on the 1099-K form from eBay is not theirs and many of them say they've never knowingly created an eBay account for either buying or selling.

Here's what I have found so far:

Financial scope - 22 reports mentioned dollar amounts from the 1099K - total so far about $300K with the highest one reported at $46k

SSN: 16 say the last 4 digits of the social security number does not match theirs, 8 say it does match.

Names: Most names match, with the exception of 3 that had the correct first name but a maiden name or last name from a previous marriage that has changed.

Addresses: Most addresses match, 2 were old addresses (mail forwarded), and 2 were partial address matches where either an apartment number was missing or had been added.

I've also verified 8 of the account IDs that were not recognized by the receiver of the 1099K. The oldest of those 8 accounts was created in February 2020 and is still very active with over 6,000 listings.

eBay's support response has been mixed - most people I've spoken to have been told this was just an error and the 1099-K can simply be disregarded, others have said they were advised by eBay support to report the matter to the IRS, credit bureaus and law enforcement as possible identity theft.

Publicly, eBay community staff are simply directing people to contact support and have had no comment when pressed for additional information.

Re: Received a 1099-k form yesterday from ebay, I haven’t sold anything on ebay.
wrote: - I know this week is crazy with the seller update, but could you please pump this one up the ladder? Between the community, social media, and several people who have reached out to me directly, I’ve observed over 50 reports so far of people who either have never sold anything on eBay…

UPDATE 2-9-22

Thanks to Brian Krebs for sharing this & welcome to all the new readers that have stopped by!

I've so far seen ~ 35 reports either in the eBay community, across social media or privately emailed to me.

I've also been able to verify 2 of the suspected fraudulent accounts that were attached to 1099-K forms where the receiver did not set up the account and can confirm there are several red flags that these accounts were/are being used to commit fraud on the platform

One example:

Many affected users are reporting eBay support is advising them this was an "error" and they can simply disregard it and throw the 1099-K away - which is absolutely terrible advice.

Regardless of whether or not this form is sent to the IRS, I would advise anyone affected to report it the IRS, credit agencies, and any relevant law enforcement agencies as identity theft and fraud.

Beyond that, it is very troubling to hear that eBay is apparently sidestepping the issue, calling it an "error" instead of being upfront about what is really going on.

This looks to be a very serious security issue in the making - eBay needs to get out ahead of it with transparency, openness and honesty that CEO Jamie Iannone says drives their success.


It's been a rough month so far for eBay's VP of Tax Carol Tabrizi with multiple 1099-K errors reported, but now I'm seeing something even more concerning - reports from people who say they received a 1099-K from eBay despite never having sold anything on the platform.

Some users say they've never even had an eBay account!

Another Twitter user reported receiving a 1099-K from eBay for over $31,000 but states someone else is using their name and address to sell items.

There are multiple reports in the eBay community as well, with some users creating accounts specifically just to post about this issue.

Received a 1099-k form yesterday from ebay, I haven’t sold anything on ebay.
Yesterday I received a 1099-k form from ebay, the only problem is I have never sold any items on ebay. On the form it says for both the month of june and july of 2021 it says the gross amount of payment/third party network transactions was $822.48. Again I have never sold nor listed anything for sa…

Yesterday I received a 1099-k form from ebay, the only problem is I have never sold any items on ebay.

On the form it says for both the month of june and july of 2021 it says the gross amount of payment/third party network transactions was $822.48.

Again I have never sold nor listed anything for sale on ebay before. I checked my transactions for those two months and I made four purchases that totaled $360. So I am not sure why I am getting this form. Is this a scam?...

Other community members suggested for the original poster to check to see if the eBay user ID and social security number on the form matched their own.

They responded:

No that box doesn't have my seller ID it is someone else's...

...It is my name and address but if by SS# you mean the payee's tin number than no it is not the last four of my SS#.

Other users chimed in on that thread to report they too had received a 1099-K despite not selling anything.

This happened to me today! I do not have an eBay account and have never sold anything and it says all the transactions happened in September. It’s my name and actually an old address, but not last 4 of social or account name. Did you get a reply from eBay?

I also got a 1099-K today and I also have never sold anything at all on eBay. Never.

"Payee's TIN" does not match my SSN.An account number is shown, but I was not aware of even having an account on eBay at all (except for the one I created today in order to pursue this issue).

I'm shown as receiving $1,976 in June (nothing for rest of year), and the number of transactions is shown as 21.

Again, I have never sold or bought anything on eBay.

This one was most concerning - the user says they had an old eBay account that was hacked over 2 years ago.

I got a similar 1099-K today. Wrong TIN, address has an apartment number (I have no apartment), my old account was hacked about 2 1/2 years ago and had to close the account and get a new e-bay name.

The ransomware/hack turned my email address into a spam bot and thus had to change my email address. That old email address was frozen then closed. This may have been part of the huge hack that Facebook got caught in. I don't even use FB, but the hack somehow found me and my contacts E-Bay has a BIG problem with this, I bet.

Re: 1099-K form sent in error by ebay
So, my issue is even worse because they sent someone else’s 1099 K to my husband with his name and someone else’s TIN/SSN! This person has over $14,000 in sales and my husband has not sold anything on eBay in years.

So, my issue is even worse because they sent someone else's 1099 K to my husband with his name and someone else's TIN/SSN! This person has over $14,000 in sales and my husband has not sold anything on eBay in years.

This is happening to me too. I received someone else's 1099-K form in the mail with someone else's transaction info and my name/address/ssn, but with the other person's ebay account number. And when I go to the electronic 1099-K form under my account, it says there's no 1099-K form for me because my transactions don't require one!

how to speak to someone about erroneous 1099-k i do not sell on ebay
how to speak to someone about erroneous 1099-k i do not sell on ebay

I've also found one report on JustAnswer.com

And another at PissedConsumer.com


So what's going on here? It's hard to say for sure but it would seem at the very least there may be an issue where eBay has mixed up user info and sent 1099-Ks meant for someone else to some users.

Another possible explanation could be that bad actors on the platform may have supplied stolen Personal Identifiable Information (PII) to eBay for the purposes of engaging in fraud.

I've spent the last two years tracking sophisticated triangulation fraud that uses hijacked compromised eBay accounts to sell essentially stolen goods.

Triangulation Fraud - What Is It & How Can You Protect Yourself?
Multi-channel ecommerce businesses using 3rd party marketplaces may be targeted by this sophisticated fraud.

eBay also has a huge ongoing problem with compromised accounts being used for other types of fraud, like these car scams where the fraudsters attempt to get the unwitting buyer to make payment off the platform.

Why Doesn’t eBay Do More To Stop Car Scams?
It seems like eBay car scams have been around forever, why doesn’t eBay do more to curb this particular kind of fraud?

Or this report from the UK where a hacked account was used to sell expensive trading cards, Rolex watches, and carbon fiber bicycles.

Grimsby businessman facing ruin after eBay account ‘hacked’
Phil Green has had to lay off staff and more could suffer after £14,000 hacking scam on his Nunsthorpe business

It would not at all be a stretch of the imagination to think that sophisticated fraudsters operating on the platform with access to a large amount of compromised account credentials and/or stolen credit cards could also be using stolen identity information as well.

While the exact details are not clear yet, it's likely there is some form of fraud being perpetrated using these accounts.


If you have received a 1099-K from eBay with someone else's tax information, first report it to eBay's Payments department and most importantly Trust & Safety.

Get help with a hacked account
If you think someone is trying to take over your account—or already has—we’ll work with you to secure it. For your protection, we may place a temporary hold on your account.

You'll also want to contact the IRS to report possibly fraudulent tax information - even if they are using a different social security number, this information could be linked to your personal information, so it's better to err on the side of caution.

Here are some additional resources regarding tax related identity theft.

Taxpayer Guide to Identity Theft | Internal Revenue Service
Keep Your Identity Safe If you use an online application to do your taxes, you can now log in with your username, password and a third personal item like a phone number. Using all 3 will keep your identity and data safer.

Beyond that, eBay must get a handle on these rampant fraud and account security issues - including absolute transparency and disclosure of any hacking or breaches that may have occurred.

If eBay wants all of the financial benefits that come from managing payments, they must absolutely be responsible and accountable for the safety and security of the entire payments process including personal identifiable information required as part of Know Your Customer (KYC) rules and regulations and tax requirements.

If eBay cannot or will not take that responsibility seriously, maybe it's time for the Federal Trade Commission and Consumer Financial Protection Bureau to fire a warning shot across the bow to get their attention.


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Liz Morton is a seasoned ecommerce pro with 17 years of online marketplace sales experience, providing commentary, analysis & news about eBay, Etsy, Amazon, Shopify & more at Value Added Resource!

23 comments
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David C.
I just got a 1099-K today. It's my name and address, but not my SSN. And I have never had an eBay account.

When I visited the user page, it was created in December 2021 and has apparently been selling items.

eBay customer support was useless. They wouldn't close the account, since it's not mine. They put a note on it and told me I need to contact law enforcement.
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Ars
We received a 1099-K from ebay, but don't have an ebay account and haven't sold anything online. The TIN does not match our info. Are there any updates to how to properly handle this?
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amanyadav589ri
Hi Liz,

I sent you an email as well.

I am worried my wife may have been a victim of this. We do not ever remember making an ebay account and I thought it was a fake 1099k / scam that arrived in the mail but seeing this is very unsettling that it may have been items sold under our SSN.

I have asked many friends and they suggest:

  1. file a schedule C and just report no income made. This may be the easiest solution that will be of no cost.
  2. File a complaint with IRS. This may take a very long time if it will ever even be solved without ruining my credit and accrue collections along the way.
From your experience, does the IRS ever actually investigate these issues? And how long do these things take to get wiped off my record if I were to contact the IRS?

Please advise what you think is best. We are very lost and this is causing so much stress in our household.

Thank you,
Trevor
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Beckiful
My husband received this 1099k form and he has never had an eBay account so definitely didn’t sell $3000 worth of merchandise. The form said 21 transactions, all in the month of August. My adult son who used to sell on eBay looked up the ID of the seller and the account exists but doesn’t show any activity. It has my husband’s last 4 of his social and the address info is correct. We had our taxes done last week and gave the form to our cpa who took it to look into it. He had never seen a 1099k and he has been doing taxes for close to 4 decades. I tried going through the support number on the paper and going online but they ask for account info and we don’t have that because he never had an account. We felt like we were getting nowhere with it.
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netnav
Just days ago my son received a 1099-K for $110,257.71 from a company called "Adyen Inc".

I looked the company name up and it appeared that Adyen was a payment processing company for ebay (it also services many other big companies like Netflix, for example)

My son has never sold on ebay or on any other platforms or marketplaces. He is a college student, and his income for 2021 from his part-time job and side-hustles was far less, than the amount stated in that form.

I'm investigating this. If anyone else has received the 1099-K form from Adyen in error and/or has more knowledge about what is going on, please share

Here is the Filer info that was on that 1099-K form:

ADYEN INC,
274 Brannan St
San Francisco, CA 94107
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Liz Morton
Wow! I would love to hear more about this and help you try to track down what is going on.

Please contact me at lizmorton@valueaddedresource.net
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Classyiam31
I received two 1099K forms today from Ebay saying I sold 10,000 worth of goods. I never sold ANYTHING on ebay!!! I called them and they said both accounts were suspended. I asked them would they be sending a correction to the IRS. She didn’t know. This is fraud!!!
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Jackie M.
The fraud and the erroneous 1099-Ks are obviously the big issue here.

The lesser but still important unspoken issue is unintended consequences. People getting these forms may have their accounts linked to the fraudulent accounts by eBay, thereby suspending these people from ever buying or selling on eBay. 😒
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Jamihep77
Hello, so yes I received a 1099 from eBay and have never sold anything. I am very confused as to who I am supposed to contact now.
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Liz Morton
@Jamihep77 - I'm sorry to hear this has happened to you.

As far as who to contact -

eBay - Get Helped With A Hacked Account (the contact button at the bottom of this page should connect you to Trust & Safety

IRS - Report Taxpayer Related Identity Theft

FTC - Report Identity Theft to the FTC

If there's anything else I can do to help or if you'd be willing to share more details privately, feel free to reach out any time! liz@valueaddedresource.net
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RunninWolf
Same has happened to me - Now I won't be able to qualify for my $ 1,100.00 discount on my house taxes - I save that much every 6 months because my annual income is below $ 50,000.00 - The $ 1,500.00 on the 1099-K puts my annual income over that -
I wish Goddamn computers had never been invented - They have done nothing but given the crooks complete invisibility, and all the honest people are getting FUCKED OVER
Dr.Pinspotter@gmx.com
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jillxxii
I got a notice that I sold $2400 worth of transaction in 2022. So I contacted ebay. They verified that i am only on a buyers account and that the TIN number is someone else's social security that is not mine. now i got an email to verify that I should not receive a 1099-K. Contact them via this link, scroll all the way in the bottom, click "have them call you" https://www.ebay.com/help/selling/selling-fees/ebay-form-1099k?id=4794
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Metromc
I did as suggested above and got a callback within 1 minute which was the time noted. After looking up my account was told it was listed as buyer only with no selling. Was told to disregard the 1099-K and that it wouldn't be reported to the IRS as the 2021 threshhold was $10,000 anyway. Not sure I trust them.
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Liz Morton
I'm so sorry this happened to you. I'd be very interested in hearing more details about what the email from eBay said. Feel free to reach out! liz@valueaddedresource.net
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Stampede
I got one too, for $46k, we haven’t used that account for over a year, even then it was to buy not sell. When I called the conversation was more about, me getting my fees paid and un-freezing my account. I told her to delete the account, I’m more worried about the IRS thinking I need to pay tax on that. She said this was an error and the IRS will never see what they sent, and they would be sending follow up letters that will explain all that.

I don’t trust them, let me know when the class action lawsuit starts, I’m in. 😊
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Liz Morton
Wow, thanks for that info! Another "this was an error" response from support instead of transparency. 👎

Very interesting they were talking about fees and getting the account unfrozen - in many fraud causes I've looked into where an account is hijacked or compromised, eBay will often pursue the innocent hacking victim for selling fees racked up by the fraudsters and even send them to collections, which is just awful. 😒

I haven't heard of anyone in this situation yet being pursued for fees, but please let me know if that happens!
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Danancd
I received one and contacted them. Ive never sold anything on ebay. They said they knew this was a issue and nothing would be sent to the irs.
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Liz Morton
Even if nothing was sent to the IRS, I would not take eBay's advice that it's "not an issue." I would still contact IRS & let them know about the situation, just in case. I'd also recommend keeping an eye on credit reports & look out for any other signs of identity theft.
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831sanchez
Told me the same thing right now... Either way still contacting the irs and letting them know just in case. Last thing i need is the government charging me for someone that's using my information.
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ms
My fears as well…
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gatimus
I just got one and haven't had an account for 8 years and only ever sold 1 thing
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ms
Jeez! Sounds like it might be mine! Wish I could request it from you! At this point though-seems no one has an inkling what to do about this sitch. But yeah-I’m on the opposite side of the problem. EBay Destroyed my reports (only info they will supply) and PayPals Story has changed from account closed so can’t access reports to account has been investigated; and further has been sold to a third party affiliate. Currently sitting in a negative standing-awaiting another third party buyer… :(
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Knaff
I received a 1099k from ebay with the wrong user name listed and i have not sold on ebay for many years. How do i resolve this? They dont answer when you call them and the skipe help section is anything but help.
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Recent Comments
Avatar Placeholdersmallseller36 minutes ago
I am in Canada. 90% of my goods are made in China. And then to have the other 10% tariffed will kill my business. 90% of my sales are to the US. Buyers will not be willing to pay an extra 54% as in the case with China goods. And I am not selling items from Temu and Shein. I am mostly selling vintage toys. I will have to move all of my items to sell only in Canada and lose all my US customers. I started reselling about 5 years ago and this was supposed to continue into my retirement. Goods that are retired can not be manufactured again. There is no plant that can be opened to make something that was built in the early 2000s. I would be shocked if Mattel would move their plant to the US.
Avatar PlaceholderEbay Bidder4 hours ago
So, ebay is doing an "intentional test" AT THE BUYER'S EXPENSE, with no indication this is happening until a bid is made. Seems like fraudulent behavior to me. What's the recourse for buyers?
Avatar PlaceholderEbay Bidder5 hours ago
Correction to previous comment:

...current published bid increment chart, shows increments of $0.25 below $5.00...

$0.25 below $4.99
$0.50 up to $24.99

https://www.ebay.com/help/buying/bidding/automatic-bidding?id=4014&st=3&pos=1