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Thu Jan 3 2019 13:59:30

eBay Account Takeovers May Have Tax Implications for Seller

By: Reader

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Dear Ina,
About a month ago, I woke up to about 100 emails from eBay. Most of them were alerting me that my Playstation 4 console was sold. I have never had so many sales in 1 day! I was kinda shocked about it - mainly because I'm not selling any Playstation 4 consoles.  

Then I got to the email that explained it all. It was from eBay, telling me that my account was compromised.  
 
I then started getting a bunch of emails from buyers who were **bleep** at me because they were alerted too. I have no idea how it happened, especially since I was still able to log in and out of my own account. I also had no problem with anyone getting into my Paypal account.  

I didn't respond to one buyer at all - I immediately contacted eBay and told them to take care of it because they know I had nothing to do with it. Not one penny went into my PayPal account, so why do I need to be involved? They told me they were taking care of it.
 
Immediately after that I started getting emails from buyers opening cases against me. Again, I contacted eBay. Again they told me not to worry they were handling it.

I couldn't help but wonder if my settings were messed with, so as I started looking into my account info I noticed my eBay fees that I had just paid the previous day was now higher than it had ever been. 

I contacted eBay again. The customer service rep told me that they will be removed. For the most part, the customer service rep was right - my fees eventually looked normal and the emails slowed to nearly 0 for a day or two.  
 
Again, I couldn't help but wonder if they removed all of the transactions from my record since I didn't have anything to do with them - PLUS the fact that eBay knew I had nothing to do with the transactions. 

EVERY SINGLE ONE of those transactions were still listed on my account. 

I immediately thought of what the I.R.S might think about all of those recent $120 transactions that won't be including in next year's taxes and contacted customer service once again. They told me that they include the info on my account because they also include the refund, so there should be no issues - they are being transparent. At this time, there are probably around 300 purchases and 300 refunds I supposedly provided. Again, I had nothing to do with these transactions.
 
I do not like the fact that these transactions are linked to me at all. I don't understand how someone was able to use my account yet use their own PayPal account while I am still able to make a sale here and there with those transactions going into my PayPal account. 

It's been 2 days since I last received an email about my "compromised" account, so it was looking like all of the buyers got their refunds and I would be left alone. I was wrong.  I just received a message from eBay telling me that customer service had just made a final decision and closed a case against me because there had been no activity on the case for 21 business days, so the hold on my $119 has been removed. 

That makes me sick to my stomach.  If eBay has access to grant refunds, why would they allow something like this to happen? That request for a refund should have been accepted.
 
This ripped-off buyer now has a reason to believe I did the ripping since it's linked to my account!

eBay was aware of the illegitimate seller the entire time and still had each and every one of the buyers go through this waiting period to get their payments refunded. 

Now I assume I will be getting more emails telling me of all of the buyers who either forgot about this by now or just gave up on it. This whole scheme is now reaping its rewards at the expense of my reputation and on my account.  
 
One last thing I must mention - I did see this case in my resolution center, but I didn't think I needed to respond to the case because I had no idea whether my response would be connected to my account. I didn't want to take a chance on approving this buyer's refund and find out that since I approved it then my PayPal account would be providing the refund.  

There are no instructions on how to handle all of these questions and situations that I found myself in. Each question I had about this whole thing needed large blocks of my time to figure out what I needed to ask about so I'd know what I should do.  I haven't had to do anything except for wait until it's over. I can't help but think that this still isn't over.
Erik



Comments (11) | Permalink

Readers Comments

Perminate Link for eBay Account Takeovers May Have Tax Implications f   eBay Account Takeovers May Have Tax Implications f

This user has validated their user name. by: iheartjacksparrow

Thu Jan 3 14:53:57 2019

@Erik (the OP) - Since no money went into your PayPal account, none of the funds will be included on the 1099. Plus you have enough evidence to prove that the sales were bogus.

Perminate Link for eBay Account Takeovers May Have Tax Implications f   eBay Account Takeovers May Have Tax Implications f

by: AngelaTC This user has validated their user name.

Thu Jan 3 17:42:57 2019

If you were audited, the IRS could clearly see that you received no money for those transactions.  Don't sweat it.

Perminate Link for eBay Account Takeovers May Have Tax Implications f   eBay Account Takeovers May Have Tax Implications f

by: sasikat9 This user has validated their user name.

Thu Jan 3 18:35:56 2019

Never trust ebay to make anything right. They have a habit of ignoring problems or making them worse. Keep all documents and proof. You will probably be flagged by the IRS.

Perminate Link for eBay Account Takeovers May Have Tax Implications f   eBay Account Takeovers May Have Tax Implications f

This user has validated their user name. by: toolguy

Thu Jan 3 20:26:50 2019

OP, you're Paypal records are all you need.

And 300 x $120 is only $36,000 nowhere near enough to get the IRS excited. . . .

Perminate Link for eBay Account Takeovers May Have Tax Implications f   eBay Account Takeovers May Have Tax Implications f

by: 1st Armored Division 1971-1973 This user has validated their user name.

Thu Jan 3 23:45:55 2019

I assume you had 2 step login where you get a text when you try to log into your account with a pass code.

Oops probably not...

Perminate Link for eBay Account Takeovers May Have Tax Implications f   eBay Account Takeovers May Have Tax Implications f

by: Snapped This user has validated their user name.

Sat Jan 5 04:21:36 2019

Software dependent processes that cross interfaces linking disparate subsystems that each both siphon and pass through data often develop unintended 'tentacles'.  The challenge of any competent test is to identify and eliminate those before they release operational havoc.

eBay has consistently proven themselves either incompetent in or unconcerned with that fundamental computer science premise.

No matter how this 'breach' occurred, or that eBay appears to have owned it, it seems eBay has been shooting from it's ample hip trying to extract all the stingers.  

You are right to be concerned that eBay will 'handle' this to a safe and liabilty free conclusion for you.  

Imagine this happening when eBay manages payments.  Via outsourced code.  

Perminate Link for eBay Account Takeovers May Have Tax Implications f   eBay Account Takeovers May Have Tax Implications f

by: Paul W This user has validated their user name.

Mon Jan 7 01:28:09 2019

"Imagine this happening when eBay manages payments."

Happily, eBay wont be managing payments, Adyen will.  eBay will simply disburse payments to sellers (after taking their cut).

Perminate Link for eBay Account Takeovers May Have Tax Implications f   eBay Account Takeovers May Have Tax Implications f

This user has validated their user name. by: Quailman

Mon Jan 7 01:33:19 2019

The same type of takeover happened to my wife's ebay account last week.  She "sold" about 10 expensive electronics items in about 30 minutes.  No money went to her Paypal account and ebay appeared to remove all the listings and refund the final value fees.  My question is how does this scam work for the hacker?  How does the money get into another Paypal account other than the one linked to the ebay account where the items were listed?

Perminate Link for eBay Account Takeovers May Have Tax Implications f   eBay Account Takeovers May Have Tax Implications f

by: Bubbles This user has validated their user name.

Mon Jan 7 02:16:54 2019

Same happened here in Oz to us - only 7 Playstations - we don't sell Playstations or anything electronic. Seriously makes you wonder about eBay security.

Perminate Link for eBay Account Takeovers May Have Tax Implications f   eBay Account Takeovers May Have Tax Implications f

by: Chicago48 This user has validated their user name.

Mon Jan 7 06:05:24 2019

@AngelaTC:  IRS audits don't happen anymore since the President (and Congress) stripped the department of funds.  An Audit for small business is passe'--UNLESS the OP has been audited in previous years.

Perminate Link for eBay Account Takeovers May Have Tax Implications f   eBay Account Takeovers May Have Tax Implications f

This user has validated their user name. by: Bidonmine

Mon Jan 7 10:24:24 2019

File a police report. This can be used in an IRS audit, even if the police do nothing. This is considered internet crime.



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