I've been seeing posts on Facebook marketplace where people have commented around no PayID.
I thought PayID was safe.
I'm just curious how do these PayID scams work? Is it not safe to use PayID?
My friend was saying to use it for his shop as payment system for his customers since there is no fees.
It really sounds stupid but unfortunately people fell for that.
There is no such thing as "upgraded account" and certainly you won't get "upgraded account" by sending them money. That is eternally stupid if you really think about it.
However, it is true that not ALL transaction accounts in Australia is capable for PayID/Osko/NPP. An example would be Bank of Queensland's Home Loan Companion Account and all of HSBC transaction accounts. Indeed, not many people seem to know about it. I only knew about it fairly recently.
I see. Yeah that doesn't make sense. No email and just mobile number and i get real time notiifcation from my banking app that deposit has been received.
I guess there needs to be some education to people on how to use it. The whole point of payid is instant transfer.
Its a shame as bad reputation might prevent businesses to offer payid.
It is possible to also spoof the email address to an official one.
it's possible for fraudulent scams messages to spoof sms sender that collates under your previous legitimate sms from banks.
app notification is safer
Is Pay ID itself safe, they can't charge back somehow?
I think depending on the bank your first payID transfer to a new payee is not instant and there is a hold until the next day. Someone may show you they've sent the money however in the meantime they will contact the bank to cancel the transfer before the money reaches your account. If you notice the money not in your account they may mention this and assure you it will be there the next day.
From commbank:
For security reasons, a hold may apply on first time payments. The delay allows fraud security checks to take place and gives you time to alert us to unauthorised or suspicious activity on your account. Subsequent payments should be received in under a minute.
So the "fraud prevention mechanism" of delaying the funds transfer makes fraud possible?
interesting. I suppose as long as you wait till you have money in your account, its fine. I haven't had any delay so far. I have seen people using CBA, ANZ and various banking apps for first time payid
depends on the bank.
Does your friend sell bread?
yes actually :). Bakery
"I can't pickup the item my self so my partners, brothers, uncle will come pick it up tomorrow but I'll PayID you now."
That's how the scam usually begins :D
But where is the actual scam?
How do they get your items without actually paying?
Is payID reversable after they have already processed the payment and it is showing in my account?
Would be good if there was more details as to where there is potential issues (or how to use payID properly to protect against getting scammed).
See my comment - it's stupid
Yeah, I noted your earlier comment.
If that is the only issue, then it is pretty easy to avoid getting scammed in that scenario.
Thanks.
https://www.ozbargain.com.au/comment/13637791/redir
Or
They say they made payment and send you a faked screenshot of a payment; beg you to allow said person to pick up item even though payment hasn't gone through and you agree to it
Or
Make payment; stays on hold, you give them item, they contact bank to reverse payment before it officially goes through to you
So in short, it is up to you to do something stupid in order to get scammed.
If that is all there is to it, then it sounds like payID should be pretty safe, as long as you wait for payment to reach your account (final settlement).
@Malik Nasser: Cash is safest.
And if someone says they need someone else to pick up their item and they'll pay using PayID; that's the first point of call to stop pursuing a sale with that person.
@Danstar: Yeah cash is safest and works for now (counterfeit notes?), but I see a future where cash will be phased out completely, so it is good to know where there are potential issues with current/future technology in regards to payment systems.
Having 'someone else' pick up their items could raise concerns, but it could also be legitimate. If the payment has reached your account (and you have confirmed it yourself, and not relied on the sellers screenshot), then I cant see where you could be scammed, knowing the above potential buyer scams.
They actually don't want what you're selling. They want you to transfer money for the fake upgraded PayID business account. See my comment here for more details.
I've actually done that, paid upfront to show I was a legit buyer and had my PIL go collect for me.
Had one of these. Bit sophisticated though. Had a fb profile from a few years ago but minimal posts. After I blocked them, my ad for a cpu was reported as tobacco sales and unpublished. Guessing they message a bunch of people at a time and eventually get one that doesn't understand the scam.
Facebook marketplace
Cash on pickup
not hard
PayID is a joke if all the banks aren't on it for instant transfer .
CBA are the problem .
It easy enough for people to check if the funds have hit your ac . To solve most of the scams problems .
yes. cba is a big no for payid payment.
bankwest has a maximum limit of $200. more than that will take at least 4 hours.
you can always smell these scammers..
I'm interested in this item, where are you at for pick up?
What’s it recent condition and are you the first user
Good day I'Il like to know if this is still available
They ask for your email for payid, then send you an email pretending to be from PayID saying that someone tried to send you money but it didn't work because you need to have an upgraded account…
To have an upgraded account you need to send them money, and they'll "Send it right back to you along with the money for the thing they're buying"
It's kinda stupid. PayID itself is safe, they just send you an email to try to trick you.