Yahoo Finance NAB issues warning to Aussies: ‘Easy way to rip people off’
Aussies lost $260,000 to PayID scams last year.
Aussies selling their unwanted or used items on Facebook Marketplace, Gumtree and other online websites are increasingly being targeted by scammers.
Major bank NAB urged Aussies to remain vigilant, after customer reports of goods-and-services scams increased a whopping 66 per cent in the past three months.
A third of these reports involved PayID - a free payment method managed by banks, which uses a person’s mobile phone number, email or ABN to send and receive money.
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NAB head of investigations and fraud Chris Sheehan said scammers ramped up their efforts late last year and the problem had continued to grow.
“We are getting reports of people selling an old TV or fridge online and being inundated with identical messages from scammers wanting to purchase the item with PayID,” Sheehan said.
“Scammers have realised online marketplaces can be an easy way to rip people off. They’re also exploiting the fact PayID is a relatively new payment method, with money being transferred instantly.”
Aussies lost $260,000 to PayID-impersonation scams last year, according to the Australian Competition and Consumer Commission’s Scamwatch, but the actual number is thought to be much higher.
How does the scam work?
PayID scams often target people selling items on second-hand websites like Facebook Marketplace and Gumtree.
The scammer will try to buy your item using PayID, but will then claim the transaction can’t be completed because you don’t have a PayID “business” account.
They’ll then claim to have sent extra money to upgrade your account, send a fake email as evidence and pressure you to reimburse them.
Red flags for PayID scams
Sheehan said the biggest red flag was often if someone asked you for money to update your account or to access PayID.
“There are never any charges related to using PayID,” he said.
“It’s also important to remember PayID will never send you an email, text or message directly as your bank registers and manages PayIDs.
“If you get an email, text or message directly from ‘PayID’ it is a scam.”
Here are three red flags to watch out for:
Being asked to send money first to receive payment
Being told you need to take additional action, such as upgrading your account or paying a fee, before the money can be received into your account
Receiving a message from ‘PayID’, such as via email, text or Messenger
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