Australians selling goods online are the target of a new PayID scam, according to NAB.

Australians are being warned to be on the lookout for a new PayID impersonation scam if they are selling unwanted or used items on Facebook, Marketplace, Gumtree, and other online marketplaces.

As thousands of Australians look to expand side businesses or become more involved with their finances to deal with the pressures of rising cost of living, NAB has seen an increase in the number of scams involving fake PayID communication in recent weeks.

It comes as NAB Economics research reveals that 53% of Australians are holding on to unwanted goods worth about $1,500.

Despite the potential financial benefit, the study found that more than 25% of people are discouraged from selling things on social media because of the hassles.

According to Scamwatch, Australians lost $260,000 to impersonation scams involving PayID last year, while the overall number of scam reports to NAB increased 38% on a yearly basis.

For an illustration of a scam email

The most recent impersonation scam, according to NAB Executive Group Executive and Fraud Chris Sheehan, was PayID deception, but the actual number of scams affecting the community is likely to be higher given that many of them go unreported.

Nobody wants to try to sell their old couch, refrigerator, phone, or stroller and unintentionally incur costs. Sadly, that's what's happening more frequently these days when people try to sell things online, according to Mr. Sheehan.

"The way we send and receive payments is changing at the same time that online marketplaces have supplanted garage sales as the prefered method for selling used goods.

PayID is a relatively new form of payment that is quick, secure, and easy. It is also cost-free, and the biggest warning sign of any PayID-related scam is frequently when someone demands payment in order for you to access PayID or upgrade an account. Using PayID is never subject to any fees.

It's crucial to keep in mind that PayID will never send you a direct email, text, or message. If you receive one of these, it is a scam.

"Cyber criminals are sophisticated and we’re unfortunately now seeing them try to exploit PayID given, on the whole, it isn’t as familiar to the community as other ways to send and receive money.”

Mr Sheehan encouraged Australians to learn about PayID so they could see through scams.

“Educating yourself about PayID and remaining vigilant means you’ll be more likely to spot red flags,” he said.

Remember, you will never:

Need to send money first to receive a payment via PayID.

Need to take any additional action, like upgrading your account or paying additional fees, before money can be received into your bank account.

Receive communication directly from PayID via email, text, or messenger. PayID is managed by your bank.

Mr Sheehan said scams were a society-wide issue and underlined the need for greater collaboration across government, business sectors and the community to stop the crime.

“We will always make every attempt to prevent scams and recover funds where possible, but it can be very difficult to recover them once the funds have left a victim’s account,” he said.

“I urge anyone who thinks they might have been scammed to contact their bank immediately. We are here to help.” He disclosed

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