The paper says the 24-year-old single mother is the call girl who fought over payment with one of the agents after spending the night at the Hotel Caribe.
In an interview with the New York Times, she claims after originally agreeing to pay $800, the next morning the man said he would give her $30.
Her reported response: "I tell him, baby, my cash money." The loud argument then spilled out into the hallway.
Prostitution is legal in Colombia, so the woman called the police and left after being paid $200.
The Secret Service members were in Colombia in advance of President Obama's trip to attend a summit meeting.
According to ABC News, before heading out to a nightclub some of the agents and officers booked a party space at the Caribe, big enough for 30 people, and then brought prostitutes back to the hotel.
In Washington, lawmakers are expressing outrage.
"It's so, what would be the word, disgusting, disconcerting and every D word you can think of," said Rep. Nancy Pelosi.
The Secret Service has moved quickly to try and control the damage from the embarrassing episode, already forcing out three employees, including two supervisors.
Officials say there's no indication that the prostitutes had access to any classified information.
"There is nothing thus far that's been revealed, the investigation will take place, but nothing so far," said Sen. Diane Feinstein.
One of the Secret Service supervisors ousted from the agency joked on his Facebook page that he was checking out former republican vice presidential candidate Sarah Palin as he protected her during the 2008 campaign.
David Chaney made the comment about a photo of Palin posted in 2009 that shows him standing in the background.
