Is PayID Safe Australia?

PayID is actually the safest payment method. It actually confirms the account details you are sending to, and as long as you aren’t sending from Commonbank, it’s instant, so everyone can see the funds have landed. The dodgy PayID scams are actually Social Engineering attacks, basically getting people to do stupid shit by convincing them to send more money.

What is PayID and How It Works?

PayID, operated by the New Payments Platform and supported by most major Australian banks and financial institutions, is a payment system created to simplify the process of bank transfers. 

It uses an account number instead of a traditional BSB, allowing users even in new Australian online casinos to link an easily recognizable unique identifier such as an email address, ABN, mobile number or organization ID to their bank account. PayID features built-in fraud detection and verification processes for enhanced security. 

How Does PayID Work?

The sender enters the recipient’s PayID, for example, phone number or email address, instead of the usual BSB or account number. The system then retrieves and displays the recipient’s registered name for confirmation purposes. Once the sender confirms that the details of the recipient are okay, the payment is then processed, oftenly instantly. 

The recipient on the other hand, including in the newest online casinos Australia receives the funds and a notification from their bank showing that the funds have been credited to their account. 

PayID Scams: What Tactics Can Scammers Use?

While PayID is safe, just like any other financial system, it can be exploited by fraudsters. According to NAB News, Australians lost $260,000 to PayID specific impersonation scams in 2022 and thus urges Australians to be on the look out for such scams. Here are some of the tactics the scammers use:

Capitalizing on the Trust Individuals Have Placed in Online Marketplaces 

According to Western Union, the Facebook Marketplace PayID scam is an example of this. The scammer poses as a genuine buyer, expresses their key interest in an item that is listed on Facebook Marketplace and quickly agrees to the seller’s asking price. The scammer proceeds to suggest using PayID as their preferred payment method, emphasizing its speed and convenience and requests the seller’s PayID details to initiate the payment.

They may send a fake email or message that often mimics a legitimate bank notification, claiming that the payment has already been sent but is pending or on hold. The fake notification may state that the seller needs to take a specific action such as paying a “verification fee”, upgrading their “business account,” new online casinos Australia 2025 or providing additional personal information. Once the seller provides the requested information or sends a verification fee, the scammer disappears, and the promised payment never materializes. 

Fake PayID Activation 

Some scammers will tell sellers that PayID requires an activation fee and send fake email addresses to the seller, pretending to be personnel from PayID. They thereafter request the seller to transfer an activation fee before receiving payments. 

The ‘“Accidental” Overpayment Trick

Normally, the scammer initiates a transaction mostly when purchasing goods or services from an individual seller. They intentionally send a PayID payment that exceeds the agreed-upon price, and immediately after, just shortly before the seller receives the notification, the scammer contacts them, claiming to have made an accidental overpayment.

They then urgently request a refund of the excess amount, claiming they need the money back immediately, and the seller, believing it is an honest error, sends the requested refund via PayID or another payment method. 

How to Avoid a PayID Scam?

• Ignore the PayID activation fee requests: Note that PayID requires no activation fees, and thus, if someone claims otherwise, they are definitely a scammer.
• Beware of overpayment claims from a buyer: If they claim to have sent more money than what was initially agreed upon, ensure you confirm first with your bank before initiating any refunds.
• Check for suspicious messages and emails: Scammers often use fake PayID emails, pretending to be PayID employees. So ensure you verify with your bank before acting on any payment request.
• Be Skeptical of urgent requests: Be wary of individuals who pose as potential buyers but rush you to complete a sale or offer to make payment in advance.
• Always verify the recipient’s details: Double check the details of the recipient before confirming a PayID transaction. For example, if a friend asks for money via PayID, call them first to confirm their request.
• Protect your personal information: Never share your PayID or bank account details with untrusted individuals, even in new casinos Australia, and be cautious of unsolicited emails, phone calls or text messages requesting personal or financial information.

What to Do If You’ve Been Scammed

This is the instruction from an official source of the Government of South Australia – you need to act quickly (you can act anonymously or report on behalf of someone else):

• Report the incident to your bank as soon as possible.
• Contact IDCARE to help you develop a damage control plan.
• Report the fraud to the National Fraud Center through Scamwatch.gov.au.

Be careful! Despite the fact that PayID is a reliable method of payment and money transfer, fraudsters are not slumbering and come up with new ways to cheat. If you need someone to talk to, ask family and friends or contact Lifeline or Beyond Blue.