Those selling items online through Facebook Marketplace and other vendors are being warned to take extra caution amidst a wave of new PayID impersonation scams.

Research from NAB outlines the growth of PayID scams, revealing a 38% increase in the number of reported scams year-on-year.

Further, the Australian Competition and Consumer Commission's (ACCC) Scamwatch revealed PayID scams alone cost Aussies $260,000 throughout 2022. 

As online marketplaces replace garage sales for ease in selling unwanted items, NAB Executive Group Executive and Fraud Chris Sheehan says that scammers are exploiting those unfamiliar with how PayID payments are processed.

“PayID is a relatively new payment method and is quick, safe and simple," Mr Sheehan said. 

"It is also free – and the biggest red flag of any PayID-related scam is often if someone asks you for money to upgrade an account or to access PayID. There are never any charges related to using PayID.

"It is also important to remember PayID will never send you an email, text or message directly. If you receive one of these, it is a scam."

How do PayID scams work? 

Peter Gaal is 24 years old and works in banking - therefore most people would assume he wouldn't be vulnerable to being scammed.

While trying to sell his old car on Facebook Marketplace, Peter was conned out of $500 following an instant message he received from an interested buyer who seemed eager to buy the car.

"The Facebook account was for an elderly lady, which had been active for several years, and she also asked me several relevant questions about the car so I was convinced it was a legitimate buyer." Mr Gaal said.

The 'old lady' then stressed to Mr Gaal that she needed the car urgently, and offered him $5,500 to be transferred instantly via PayID, which he accepted. 

He immediately received a screenshot that seemingly confirmed that the money had been sent - however there was a problem.

"She mentioned that she was transferring from a Business Transaction Account, and I wasn't sure why that was relevant at first, but then I got an email from PayID that looked completely legitimate that said the minimum transaction amount from a business account was $6,000," Mr Gaal said.

Mr Gaal then went back to the seller, presenting her the fraudulent email.

She agreed to transfer an extra $500 to get the transaction through, on the condition that he would send it straight back to her.

Once he received another (fake) screenshot of the $500 transfer, that's what he did.

"As soon as the $500 left my account, I was blocked instantly. I went straight to CBA (CommBank), and the agent said that this was a very common scam going around."

NAB launches 'See through scams' campaign

NAB launched a new education campaign to better equip both young and old Australians to spot a potential scam.

NAB research says that while young, tech savvy Australians like Mr Gaal are the group least concerned about falling victim to scams, they are in fact heavily represented in those who have fallen victim.

Only 16% of men and 18% of women aged 18-29 were worried about cyber attack or scam, but about a third (34% of men and 38% of women) had been caught by one.

NAB Executive Group Investigations & Fraud Chris Sheehan says that the bank is committed to protecting and educating all Australians.

“NAB has more than 60 projects underway across the bank to help address the impacts of scams and fraud,” he said.

“Making it harder for criminals to infiltrate banking phone numbers and text message threads and introducing protective prompts to digital banking so customers can identify potential scams are among some of the recent initiatives."


Advertisement

Need somewhere to store cash and earn interest? The table below features savings accounts with some of the highest interest rates on the market.

Provider

4001$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • Bonus rate for the first 4 months from account opening
  • No account keeping fees
  • No minimum balance

High Interest Savings Account (<$250k)

  • Bonus rate for the first 4 months from account opening
  • No account keeping fees
  • No minimum balance
4000$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking
  • No withdrawal notice periods or interest rate penalties
  • Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace
Disclosure

Savings Account

  • A high-interest online savings account with no monthly fees, easy withdrawals and award-winning digital banking
  • No withdrawal notice periods or interest rate penalties
  • Save up to 10% on eGift cards at over 50 retailers with Macquarie Marketplace
Disclosure
400$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details
  • Special offer: Savings Accelerator (Kick Starter offer).
  • For a limited time, new ING customers can get a bonus 0.70% p.a. on their savings rate on balances of $150,000 up to $500,000 for the first 4 months. T&Cs apply.
  • If your balance is over $500,000 (but less than $5 million) you will earn the ongoing variable rate of 4.7%
Disclosure

Savings Accelerator

  • Special offer: Savings Accelerator (Kick Starter offer).
  • For a limited time, new ING customers can get a bonus 0.70% p.a. on their savings rate on balances of $150,000 up to $500,000 for the first 4 months. T&Cs apply.
  • If your balance is over $500,000 (but less than $5 million) you will earn the ongoing variable rate of 4.7%
Disclosure
400$product[$field["value"]]$product[$field["value"]]$product[$field["value"]]More details

Savings Accelerator

    Important Information and Comparison Rate Warning

    All products with a link to a product provider’s website have a commercial marketing relationship between us and these providers. These products may appear prominently and first within the search tables regardless of their attributes and may include products marked as promoted, featured or sponsored. The link to a product provider’s website will allow you to get more information or apply for the product. By de-selecting “Show online partners only” additional non-commercialised products may be displayed and re-sorted at the top of the table. For more information on how we’ve selected these “Sponsored”, “Featured” and “Promoted” products, the products we compare, how we make money, and other important information about our service, please click here. Rates correct as of November 9, 2024. View disclaimer.

    Important Information and Comparison Rate Warning

    Picture by FYL:D on Unsplash