TL;DR: You’re selling something online. A "buyer" asks for your PayID and email. Soon you get an official-looking email saying your account must be "upgraded to a business account" and you need to refund a deposit or pay a fee before the money is released. It’s fake. PayID is free, and you never need to upgrade your account to receive a PayID payment. Don’t pay, report the buyer, and check payments only in your banking app.
How the scam works
Per Westpac:
- A buyer on a marketplace is keen, often without asking about the item. Bonus red flag.
- They ask for your PayID (usually your mobile or email) and your email address.
- You receive a fake email, styled like a bank or PayID, saying your account was upgraded to a business account, and you must refund a "deposit" or pay an upgrade fee.
- The buyer pressures you: "I’ve already paid, the money’s waiting, just send the fee."
There’s also a new account version where the "buyer" insists you open a new bank account or PayID to complete the sale.
How common it is
NAB warned in 2023 that scam reports to the bank had risen 38% year on year, and that Australians lost $260,000 to PayID impersonation scams in the previous year, according to Scamwatch. NAB’s fraud chief Chris Sheehan put it simply: "the biggest red flag of any PayID-related scam is often if someone asks you for money to upgrade an account."
WA ScamNet describes the ending: you pay the "refund", the buyer vanishes, and your item is still unsold. One WA victim lost $1,300.
The facts that kill the scam
- "PayID is a free service." You never pay a fee to use it.
- You never need to upgrade your account to receive a PayID payment.
- PayID payments show up in your banking app, not in an email.
- NAB says PayID doesn’t contact users by email, text or message. Any "PayID" email is fake.
- Never send money first to receive a payment. Real buyers pay you; you don’t pay them.
If it’s not in your app, it hasn’t arrived. That’s the whole test.
Red flags
- Buyer asks for your email as well as your PayID
- Buyer is in a rush, sends a "courier" or "friend" to collect
- Offers above asking price, or money in advance
- New profiles, no friends, or overseas buyers
- Moving the chat off the marketplace to email or text
What to do
- Don’t reply to upgrade or refund emails. Don’t pay anything.
- Check your banking app. No money there means no sale.
- Report the buyer to the marketplace.
- Forward the fake email to your bank’s hoax address (Westpac: hoax@westpac.com.au; texts to 0497 132 032). Others are in our reporting guide.
- Report to Scamwatch.
- Already paid? Call your bank immediately.
Selling safely
- Keep chats on the platform.
- Accept payment only once it appears in your account.
- Avoid international transfers, gift cards and crypto.
See our guides to Facebook Marketplace scams and marketplace scam rules. A free exposure check shows if your contact details are already in breach data.
Frequently Asked Questions
Does PayID send emails about payments?
NAB says PayID doesn’t contact users by email, text or message, so treat any "PayID" email as a scam. Check your banking app instead.
Does PayID charge fees?
No. PayID is a free service and you should never pay a fee to use it.
Do I need a business account to receive PayID payments?
No. You never need to upgrade your account to use PayID.
How do I know a PayID payment arrived?
Check your banking app. Emails claiming money is "pending" are a scam sign.
Where do I report a PayID scam?
Report the buyer to the marketplace, forward the email to your bank and report to Scamwatch.
Sources
- Westpac: Using PayID and avoiding online marketplace scams
- NAB: New PayID scam targeting Aussies selling items online
- WA ScamNet: PayID impersonation scams