That's kind of scary!
Just like eBay, Etsy, etc. & the Social Security number thing. Giving personal data can be dangerous. After all, if Microsoft can be hacked, surely anyone can.
We used to sell some things on eBay until it became mandated to give them your Social Security number. (Not their fault. Government's new 1099-K rules effective January 2024 for any business that uses a 3rd party payment service.) Technically, only after $600.00 in gross does one need the number, but eBay now requires it to sell at all.
The Social Security number goes to their 3rd party payment handling company. That is two more places subject to hacking- one being off shore and one being eBay. (They also get one's address, name, date of birth- so a hack gives an identity thief all the data needed.) And, how many employees, potential crooks, have access to that data?
We tried to go around and use my wife's business. No such luck. Still had to give Social Security number and photo of driver license. So I tried my business, an S-Corporation where I am but a shareholder. Again with that stuff & even more! Good-bye eBay.
The purpose of the 1099 law was to provide more tax revenue. But, if people stop selling, they have less money to spend. Thus the economy suffers and tax revenue drops. I don't mind paying income tax on my junk-sale profits, but it has to be safe.
And-
I spoke with a Social Security Administration security person about giving a Social Security number to marketplaces like eBay or Etsy.
His reply: "Are you Insane?". Good enough for me!
Paul