The most common PayID scam targets sellers: a fake buyer sends you an email that looks like it's from PayID or your bank, saying you must pay a fee to 'upgrade' your account before you can receive their payment. PayID says it will never ask you to send money to receive money or to upgrade your account, so any message like that is a scam.
This scam targets sellers on Australian buy-and-sell sites, and it works because it sounds technical. Selling a couch on Facebook or Gumtree, someone keen messages you, offers to pay by PayID, and then the "PayID" email arrives with a problem only you can fix by paying. Here's how to spot it and what to do.
How the PayID upgrade scam works
- A buyer messages you about your listing and agrees quickly, often without seeing the item.
- They ask for your email so they can pay by PayID.
- You get an email made to look like PayID or a bank, saying the payment is on hold.
- It says you need a business account or an upgrade, and asks you to pay a fee, often 'refundable'.
- Sometimes the 'buyer' sends a fake screenshot showing they've paid extra, and asks you to send the difference.
- Any money you send is gone.
Why it can't be real
PayID is a way of addressing a payment, like a mobile number, email address or ABN linked to a bank account. It isn't a wallet you upgrade. Australian Payments Plus, which runs PayID, is blunt about it: PayID will never ask you to send money to receive money, will never ask you to upgrade your account, and emails or texts claiming to be from PayID are a scam. Real PayID payments land in your bank account through your bank's own app, not through a separate email.
The red flags Scamwatch lists
| Red flag | What it looks like |
|---|---|
| Asked to pay to get paid | A fee to 'release', 'upgrade' or 'verify' your PayID |
| Overpayment | They 'pay' more than the price and ask you to refund the extra |
| Unusual payment requests | Money orders, pre-loaded cards or several different PayIDs |
| Name doesn't match | The account holder isn't who you thought you were dealing with |
| No inspection | Keen to buy something expensive without seeing it |
| Moving off the platform | Wants to chat by email or text instead of the app |
Buying? Use the name check
For buyers, PayID has a useful protection built in: when you pay to a PayID, your bank shows you the name linked to it before you hit send. Scamwatch's advice is to check the person you're paying matches that name, and if it doesn't, don't pay. Because many payments are now instant, Scamwatch warns it's unlikely you'll get your money back once it's sent.
If you've already paid
- Stop. Don't send any more money, whatever they say.
- Contact your bank straight away and ask them to stop the transaction.
- Block the scammer on every channel.
- Report it to Scamwatch to help protect others.
- Warn family and friends, and watch for follow-up scams promising to recover your money.
Moneysmart adds that if you paid through a money transfer app, report it to the app provider too.
Money sent to you by mistake?
Another version runs the other way: a stranger sends money to your account 'by mistake' and asks you to send it back. Australian Payments Plus says you should never return money to someone you don't know. Contact your bank instead and let them handle it.
Why the scam works so well
Sellers are usually in a hurry and want the item gone, and the scam plays on that. The buyer sounds keen, the email looks official, and the fee is framed as something that comes straight back once the 'upgrade' is done. Some versions add pressure, such as a deadline before the 'payment' is cancelled, or a second email claiming the fee must be paid again. None of it's real. The only thing that moves is your money, out of your account.
Scammers also copy the look of real brands, so a logo or a professional layout proves nothing. Check where the message came from, then ignore it and open your banking app yourself to see whether any money has arrived.
Safer selling habits
- Keep chats inside the selling app.
- Only accept payment into your own banking app and check it's arrived before handing anything over.
- Ignore any email about your PayID that you didn't start; open your bank app directly instead.
- Cash on collection is still fine for local sales.
These scams are big business. Australian Payments Plus says that in 2021, Australian businesses and consumers lost 227 million dollars to scammers pretending to be another person or company.
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My verdict
Remember one line and you're safe from this scam: you never pay to get paid. PayID is a great, fast way to receive money, and the name check makes it safer for buyers. For more on spotting money scams, see how the money flipping scam works, my OfferUp safety check and is Nextdoor legit.
Frequently asked questions
Does PayID ask you to upgrade your account?
No. PayID says it will never ask you to upgrade your account or send money to receive money. Any message saying so is a scam.
Does PayID send emails about payments?
PayID says emails or texts claiming to be from PayID are a scam. Real PayID payments arrive through your bank.
Can I get my money back from a PayID scam?
Contact your bank immediately. Scamwatch warns many payments are instant and it's unlikely you'll get money back, so act fast.
How do I check a PayID is safe to pay?
When you pay to a PayID, your bank shows the name linked to it. Scamwatch says if the name doesn't match who you expect, don't pay.
Is it safe to accept PayID on Facebook or Gumtree?
Yes, if the money arrives in your own banking app and you check it's there before handing over the item. Ignore any email saying you must pay to receive it.
Is there a PayID limit?
Your bank sets daily payment limits, which apply to PayID and Osko payments too. Check with your bank.
