DoorDash Data Breach – Identity Theft Lawsuit Lawyer

Were you surprised to receive a 1099-NEC from DoorDash, though you have never worked as a driver for the food delivery app? Alternatively, you may have worked for them years ago, but not within the previous tax year. Either way, you should be concerned, since there is a scam going around where people are using stolen identities and driving for DoorDash in order to avoid paying taxes on the earned income.

Most of us would agree that taxes are a pain to deal with every year, but at least it’s over and done with once you send in your tax return. If you are a DoorDash driver, commonly referred to as a Dasher, you need your 1099 to verify how much you earned and pay the associated taxes. But as we near the end of tax season, some people are finding out that their information is being used for the purpose of committing tax fraud.

Perhaps you’ve tried to straighten this out with DoorDash, but it was a completely pointless endeavor. You are not alone, as we have spoken with numerous people who were on hold for hours and sent from one person to another, with no one having any clue on what to do about the fake driver accounts. Frankly, this is unacceptable when DoorDash has known for years about unauthorized users gaining entry into their system and stealing people’s information.

If you or someone in your family was impacted by the Door Dash data breach, please take some time to learn about your rights and legal options from one of our attorneys. All you have to do is schedule a free case review by contacting us here at Kenmore Law Group.

What can Happen if my Identity is Used to Create a DoorDash Driver Account? 

There are many ways to use someone’s information for criminal activity, but most people don’t stop to think about the tax burden that can result from a Dasher account that’s in your name. The first and most obvious issue is that you are the one who is stuck with the bill for income that went to another person. This is a rather sophisticated scam that’s focused on long-term goals and indirect profits, which is why most victims have no clue what’s going on until they get the tax forms from DoorDash.

But having your information out there and being sold time and time again has many consequences that can devastate your finances. For example, your information can be used to file a tax return and steal your refund. Or, if you were already approved for a refund, the 1099-NEC issued under your tax payer ID may cause you to lose your entire amount, based on how much taxes are owed by someone that drove for DoorDash using your personal information.

From the moment you suspect tax-related identity fraud, please complete and submit the IRS Identity Theft Affidavit, also known as IRS Form 14039. This will initiate an investigation by the IRS Identity Theft Victim Assistance team, which will hopefully prevent you from being stuck with someone else’s tax bill. Of course, as with any government agency, it can take months – if not years – do undo the damage that was caused by security issues with DoorDash or one of their vendors.

During this process, it’s essential to learn about your rights and the compensation you deserve from a DoorDash identity theft lawsuit attorney.

How was Personal Information Stolen from DoorDash in the First Place?

To answer this question, we will need to go over the history of security issues that have plagued the food delivery app over the years. In 2019, DoorDash was part of a phishing campaign on one of their vendors, and as a result, unauthorized users were able to access information pertaining to customers, Dashers, and DoorDash partners (restaurants and stores). Information that was exposed include email addresses, customer and driver names, phone number, driver’s license numbers, delivery addresses, and partial credit card, bank account, and social security numbers.

DoorDash stressed that the information accessed could not be used for identity theft purposes, but we only have their words to rely on. And we know that there are highly advanced crime syndicates that use use phishing emails and texts to obtain bank account numbers, socials, and other highly sensitive data. Some of them even hire people to pose as DoorDash customer service reps, who contact the customer or driver and manipulate them into giving over their personal info.

After the phishing attack in 2019, here is what DoorDash promised its customers, independent contractors, and partners:

“We have taken a number of additional steps to further secure your data, which include adding additional protective security layers around the data, improving security protocols that govern access to our systems, and bringing in outside expertise to increase our ability to identify and repel threats.”   

But 3 years later, there was another phishing attack where malicious actors gained entry into the system. On April 25, 2022, DoorDash announced that a security breach with a third party vendor compromised personal information for some of their customers. This was part of a mass phishing campaign, where hackers used stolen employee credentials to gain access into some of DoorDash’s internal tools.

Clearly, there are serious failures with DoorDash’s security system that the company needs to address. They must also compensate anyone if negligence on their end resulted in scammers using stolen identities to set up fake Dasher accounts.

Is there a Class Action Lawsuit on this Case?

Tax fraud by those using other people’s identity to work for DoorDash is a relatively new scam, and we are still in the process of talking to victims and investigating their stories. However, there is no denying that many people’s lives have been devastated by tax consequences on income that they never received. The more we hear from victims like you, the closer we will be to the finish line of gathering enough evidence and demanding compensation from the responsible parties. With that in mind, please don’t delay in contacting our office and talking to a data breach class action lawyer.

How Much can I Receive from a Stolen Identity Lawsuit against DoorDash?

A class action lawsuit filed by data breach identity theft victims can settle for anywhere between $20,000,000 and $500,000,000. However, keep in mind that these are estimates, which are not based on all the factors we must examine in order to determine your actual case value. The number of plaintiffs that have joined the lawsuit is a crucial element, as you can form a class action lawsuit with thousands of people, or just 12 members.

Lawsuits for under 50 people can settle for $10,000,000 or less, but database security issues at major corporations typically affect millions of people. This is why you often hear about 8 to 9 figure settlements for these lawsuits, which is perfectly reasonable based on how many victims are eligible for a claim. Once the payment is recovered from a DoorDash identity theft lawsuit, the amount received by each class member will probably be around $5,000 to $100,000.

How Long Does it Take for a Data Breach Lawsuit to Settle?

It takes around 1 to 3 years to settle a data breach class action lawsuit against corporations like DoorDash, though some cases are resolved within a matter of months. But it’s quite rare that such a lawsuit is settled in less than 12 months, due to the complex nature of digital applications and the systems that are used to store personally identifying data. You also have to consider many other factors, like the number of claimants in the lawsuit, the total amount of monetary damages, and the level of negligence by DoorDash and its third party vendors.

We expect to reach a settlement directly with the company, as the chance of going to trial is very slim. In the event a trial is required, receiving payment from a DoorDash identity theft class action claim can take 3 to 5 years.

What is the Deadline to Sue DoorDash if My Personal Information was Stolen?

You have 3 or 4 years to file a lawsuit against DoorDash and its third party vendors, depending on whether you are a victim of fraud or felony fraud. Identity theft is classified as fraud or felony fraud depending on various factors, like the total amount that was stolen, if the victim was a senior citizen, and whether the offender has committed such crimes before.

Please be aware that the statute of limitations to file a lawsuit begins on the date of realizing that you are a victim of stolen personal information. This is important for consumers, who are often unaware that their identity is being used for nefarious purposes. And when it comes to taxes, it’s unlikely that you would have put two and two together had you not received a 1099 from DoorDash or a tax bill from the IRS.

Don’t worry if you’re not sure about the amount of time you have for a stolen identity tax fraud lawsuit. That’s what our attorneys are here for, along with answers to all your questions and concerns if you were affected by the unauthorized access to personal information stored by DoorDash.

Contact Kenmore Law Group

Knowing that your personal information is out there for anyone to use and abuse is a terrifying thought. No matter how many precautions you take, there’s always the possibility of being hit with bills and legal that have nothing to do with you.  

The data breach lawyers of Kenmore Law Group are ready to build a strong case on your behalf and hold DoorDash responsible for their failure to protect your identity. By contacting us today, you will receive free legal services from start to finish, as we offer a Zero Fee Guarantee. Under this policy, the cost of legal fees is paid by DoorDash as a part of your settlement award. That way, you pay $0 out of pocket to obtain justice from a tax fraud identity theft class action lawsuit.

Please contact our law firm and schedule a free case evaluation if you or a member of your family had your identity stolen in a DoorDash data breach.