NAB issues a warning to Australians selling goods online as scams increase.
Due to recent data showing increased scams, Australians selling unwanted or used items on Facebook Marketplace, Gumtree, and other online marketplaces are urged to exercise caution.
In the last three months, there has been a 66% increase in customer reports of goods and service scams.
Criminals were attempting to use PayID, which uses a mobile phone number, email address, or ABN to send and receive money, in a third of reports about these scams.
Chris Sheehan, Group Investigations and Fraud Executive for the NAB claimed that the issue has only worsened since scammers increased their efforts to target online marketplaces in late 2022.
According to reports, people selling an old TV or refrigerator online receive numerous identical messages from con artists offering to pay with PayID, Mr Sheehan said.
"The buyer frequently argues that the seller's lack of a PayID "business account" prevented the transaction. The con artist may claim that they upgraded the seller's account at their expense and now require reimbursement.
"Scammers have discovered that using online marketplaces to defraud people is simple. They are also taking advantage of the fact that PayID is a relatively new instantaneous payment method.
According to Scamwatch, Australians lost $260,000 to impersonation scams involving PayID last year, but the actual amount is probably much higher given how frequently scams go unreported.
PayID, according to Mr Sheehan, is quick, secure, easy, and accessible.
"The biggest red flag of any PayID-related scam is often if someone asks you for money to upgrade an account or to access PayID," the expert advised.
"PayID usage is never subject to any fees.
It's also crucial to remember that your bank registers and administers PayIDs; PayID will never send you a direct email, text, or message. Therefore, it is a scam if you receive a message, email, or text directly from "PayID."
Mr Sheehan urged all Australians to think before sending a transfer and never to give in to pressure.
"Millions of Australians use digital banking every day, and given the pressures on their standard of living right now, many are looking for additional sources of income. For some people, that entails clearing out their homes of clutter by selling unwanted items online, according to Mr Sheehan, a former executive with the Australian Federal Police.
It's crucial to educate yourself about PayID to spot these con artists and ensure that any efforts you make to make extra cash don't cost you anything.
Scams, according to Mr Sheehan, are a widespread issue that calls for increased cooperation between the public and private sectors of society to prevent crime from occurring.
"Year over year, customer reports of scams to NAB increased 38%. To lessen the effects of scams, we have more than 60 initiatives finished or in progress, he said.
Although we always try our best to stop scams and recover lost money, it can be very challenging once money has left a customer's account.
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