Why you should use PayID® but Beware of Online Marketplace Scams

October 2024 - 5 minutes' read

What's in this article

• The rise in online marketplace scams
• The convenience and benefits of PayID when sending or receiving money
• Learn about common PayID scam tactics and why scammers target PayID users

The popularity and growth of online marketplaces has made it easier than ever to buy and sell items online. Unfortunately, this convenience has also created new opportunities for scammers. It's important to trust your instincts and be confident, before proceeding with any contact or transaction, that the person you're dealing with is legitimate.

In 2023 alone, more than $45 million* was reportedly lost through fake buying and selling schemes in Australia, with scams that target PayID costing at least $260,000 according to Scamwatch. And these numbers are unfortunately on the rise.

What is PayID and how is it safe

A PayID is a registered way to send and receive payments using a mobile phone number or ABN. It is unique to you and can only be registered to one financial institution at a time. Personal customers can register a mobile number as a PayID, while Sole Traders or company owners can use their ABN as their PayID. Rather than using your BSB and account number, you can share your PayID to payees instead.

This makes it easier and more convenient for you to send and receive money without having to remember your bank details. If you change your bank account, or need to update your PayID, you can do it anytime via the App.

The other benefit to using PayID is the registered name function. If the name that displays on the screen doesn't match the recipient's name, you may consider this suspicious.

To create a PayID, you'll need to be registered for Westpac Protect™ Security Code as your Security device and have an eligible Osko account. Learn more about PayID, how it works and how to set up a Westpac registered ID.

Common Online Marketplace Scams

PayID is a convenient and secure way to send and receive payments, but if you're not familiar with the feature and how it works, scammers may take advantage of your lack of knowledge. To protect yourself when using sites such as Facebook Marketplace, Gumtree or eBay, it's important to understand some of the common PayID scam tactics, so you can be on the lookout for anything suspicious before you send money using PayID.

Be cautious of requests to provide your PayID and email address. Scammers often use this information to trick you into upgrading your account or paying unnecessary fees.

Common Tactics:

• Account Upgrade Scam: You may receive an email claiming your account has been upgraded to a business account and you need to refund a deposit that has been credited to your account.

• New Account Scam: Scammers may ask you to open a new bank account or PayID to facilitate the transaction.
   

PayID is a free service. You should never be asked to pay a fee to access PayID or need to upgrade your account to use it. If a buyer or seller request any of these actions, it's a warning sign you're likely involved in a scam. Don't respond to these emails and report the buyer or seller profile to the online marketplace.

Warning signs and things to look out for:

• Watch out for potential buyers who rush you to complete the sale, or if they claim they're unable to collect the item themselves and will send a family member or friend to pick it up. Be cautious if they offer to pay money in advance
• Sellers advertising at very low or cheaper prices

• Buyers offering to pay more than the asking price or a deposit for you to remove the advertisement

• If a seller’s profile is recently created and they have no friends listed, or are located in a foreign country, proceed with caution

• Be wary if the seller or buyer asks to communicate over email, text messages or outside of the online marketplace platform

• Avoid providing your credit card directly and instead, look for a secure payment system such as PayPal or Apple/Google Pay

• Avoid making payments via international money transfer agents, money orders, pre-loaded gift cards or cryptocurrency.

What to do it you've been scammed

If you have been involved in a scam or fraud, report it to us immediately. If you've received any suspicious email you can forward it to hoax@westpac.com.au or SMS/text message to 0497 132 032 then delete the email or message. By sharing these types of activities with us, you’re helping our customers and the Australian community stay one step ahead of cyber criminals.