'My brother will pick it up, what's your PayID?' How to avoid this scam when selling stuff online
Retrieved on:
Tuesday, August 22, 2023
The old one is still perfectly good to sit on, so you jump online to try and get a little bit of cash for it.
Key Points:
- The old one is still perfectly good to sit on, so you jump online to try and get a little bit of cash for it.
- Every day, thousands of Australians list their unwanted things on online trading sites such as Facebook Marketplace and Gumtree.
- The PayID scam is a popular example of this, with Australians losing more than $260,000 through this specific approach in 2022.
What is PayID?
- Importantly, PayID reduces the need to remember bank account and BSB numbers, and overcomes the issue when these are entered incorrectly.
- To set up a PayID, consumers can use their phone number, email address or ABN as a form of identification.
- The bank will verify the person owns this information, and then link the person’s bank account to this unique identifier.
How does the PayID scam work?
- The offender will then urge you to accept payment through PayID.
- Once you’ve shared your PayID (usually phone number or email address) and the scammer has this information, a few things may happen.
- The offender will say they have made the payment, but it cannot be processed because you don’t have a suitable PayID account.
- As part of this, offenders will create text messages and emails that appear to be from PayID, confirming payments or advising of problems.
How do I avoid a PayID scam?
There are several warning signs to look out for when selling goods online:
What to do if you have been scammed?
- You can report any financial losses to ReportCyber, an online police reporting portal for cyber incidents.
- In 2023 so far, Australians have reported more than $32 million lost to buying and selling schemes, including the PayID scam.
- Stay vigilant when buying or selling goods online, and consult the Scamwatch website for details on other types of scams.