How to Spot a PayID or Bank Transfer Scam in Australia

PayID is a genuine and useful feature of Australian banking. It lets people send and receive money using something easy to remember, like a phone number or email address, instead of a BSB and account number. The problem is not PayID itself. Scammers have learned that many people, especially those selling items online, are not sure how it works, and they use that uncertainty to trick them into handing over money. Here is how the common scams work, the red flags to watch for, and what to do if something feels wrong.

Why These Scams Work

The most common version targets people selling items on online marketplaces. The scam relies on the seller wanting a quick, smooth sale and not wanting to look difficult. According to NAB, Scamwatch figures showed Australians lost about $260,000 to PayID impersonation scams in 2022, and the real figure is likely higher because many scams go unreported.

The Four Most Common Tricks

1. The Fake Account Upgrade

A buyer agrees to pay by PayID. Shortly after you send your details, you receive an official-looking email claiming you need to upgrade to a business account, or pay a fee, before the payment can be released. The email looks like it comes from PayID or your bank. It does not. The buyer, or someone working with them, wants you to pay the fee, and there is no payment waiting for you.

2. The Fake Overpayment

You receive a message saying the buyer has accidentally paid too much and asks you to refund the difference. Often a fake confirmation email or screenshot is attached as proof. If you refund the difference, that money is real and gone, while the original payment never existed.

3. The Impersonation Email or Text

You receive an email or text that appears to be from PayID, your bank or a payment service, asking you to click a link, confirm details or fix a problem. These messages are designed to look urgent and official. Banks and Scamwatch consistently warn that PayID does not contact you directly this way.

4. The Pressure Play

Every version relies on urgency. The buyer needs to collect today, the fee must be paid in the next hour, or the payment will be cancelled. Pressure is the tool that stops you from checking.

The Red Flags That Matter Most

• Anyone asking you to pay money to receive money. NAB's fraud lead has said the biggest red flag in any PayID scam is a request for money to upgrade an account or access PayID, and that there are never any charges for using it.
• An email or text about a payment that arrives outside your banking app. A genuine incoming payment shows up in your own account, not in an email from someone else.
• A request to refund an overpayment before you have confirmed in your own account that the money has actually arrived.
• Screenshots as proof of payment. A screenshot proves nothing, because it can be faked in seconds.
• Pressure to act fast, or to move the conversation off the platform you are using.

What to Do Instead

1. Confirm every incoming payment inside your own banking app before you hand over an item or send anything back.
2. Never pay a fee, upgrade or deposit to receive a payment.
3. Do not click links in unexpected messages about payments. Open your banking app directly instead.
4. If you are unsure, call your bank using the number on the back of your card, not a number from a message.
5. Turn on instant transaction notifications, so any activity on your account is something you see straight away.
6. When you send a payment, check that the name your bank shows for the PayID matches the person you expect before you confirm.

If You Think You Have Been Scammed

Act quickly. Contact your bank straight away so it can attempt to stop or trace the payment, and keep every message and screenshot. Report the scam through Scamwatch, which is run by the ACCC, and consider contacting IDCARE, a free service that helps people who have had their personal information compromised. Do not feel embarrassed. These scams are designed to work on careful people, and reporting them helps protect others.

Understanding How Payments Work Makes You Harder to Trick

Most scams succeed because of a knowledge gap, not carelessness. If you know that PayID is free, that it does not email you, and that real payments appear in your own account, the usual tricks stop working. Our guide to what PayID is and how getting paid works covers the basics, and our guide to using a digital wallet securely covers the habits that keep your cards and phone safe. Onyx Global is an Australian-owned digital banking and card platform that is opening to its waitlist ahead of launch, and we publish guides like these because understanding payments is part of banking safely.

Staying Safe When You Buy or Sell Online

• Keep the conversation and the payment on the platform where you can. Moving off it removes the records and any protections the platform offers.
• Be wary of buyers who refuse to meet in person or who insist on an unusual payment step before they will proceed.
• Never share verification codes, passwords or banking logins. No genuine buyer or platform needs them.
• Check the other person's profile for its age, history and reviews before you agree to anything.
• Slow down. If a deal feels rushed or too good to be true, pause and check before you act.

None of these steps takes long, and together they close off most of the openings scammers rely on.

Frequently Asked Questions

Does PayID ever charge a fee or ask me to upgrade my account?

No. There are no charges for using PayID, so any message asking you to pay to receive money or upgrade an account is a scam.

How can I tell whether a payment has really arrived?

Check your own banking app. A real incoming payment appears in your account, and an email or screenshot is not proof of anything.

What should I do if a buyer says they overpaid?

Do not refund anything until you have confirmed in your own account that the full amount has actually arrived. If it has not, it is almost certainly a scam.

Who do I report a PayID scam to?

Contact your bank immediately, then report the scam to Scamwatch. IDCARE can also help if your personal information has been compromised.

Is PayID itself safe to use?

Yes. PayID is a legitimate banking feature. The scams target people who are unfamiliar with how it works, not weaknesses in PayID itself.