DOTHAN, Ala. (WDHN) – The stress and time associated with Christmas shopping has led many to turn to the internet for all of their gift wishes.
However, there are many risks associated with using the internet that you may not find in a traditional business. And using third-party payment apps like Venmo and Cash App opens up more risks for users during the holiday season.
“There are so many hackers out there creating fake Venmo accounts or some of those others,” said Thomas Parish, owner of the ATC group. “And of course, with anything you buy online, you risk the chance that the person will be crooked to begin with.”
But not only consumers need to be aware of the use of these payment apps. The IRS has started monitoring apps like this to ensure that businesses and sellers who primarily use cash apps to make payments are reporting their earnings through their taxes.
After any business transaction through cash apps of $ 600 or more, the IRS can investigate your account more closely.
“If you offer a service or sell a product for more than you paid for it, the revenue must be reported,” Parish said. “The IRS is closely investigating these transactions through Venmo, Paypal and other cash apps to make sure you report them as they will be able to track them.”
To ensure that you stay safe shopping online this holiday season, there are a few ways you can avoid scams.
“Stick to the safe side,” said Parish. âGo to the places that you know are right. If you can shop with a credit card, if something goes wrong with that transaction, you can get back in and combat the stress on your credit card. “