New PayID Scam Alert: What Aussie Gamblers Need to Know

While PayID itself is a secure payment method, scammers are constantly finding ways to exploit any system – and PayID has become a new tool in their arsenal. Australian banks and authorities have issued warnings about PayID scams targeting people through SMS, email, and online platforms. If you’re an online gambler using PayID, here’s what you need to be aware of to protect yourself.

How the PayID Scam Works

One common scam works like this:

1. The Setup: A scammer contacts you, often through an online marketplace (like Gumtree or Facebook Marketplace) or potentially via social media/gambling forums. They express interest in sending you money – for example, buying something you listed for sale, or maybe claiming you won a prize or a bonus.
2. They ask for your PayID: They’ll say, “I’ll PayID you the money, what’s your email or phone number linked to PayID?” Since PayID is a normal way to receive money, you might think nothing of it and give them your details.
3. Fake confirmation: You then receive an email (or even an SMS) that looks like it’s from PayID or a bank. It might claim something like, “You have an incoming payment of $500.00 AUD. However, your account is not upgraded to business status to receive this amount. Please pay a refundable $300.00 AUD to upgrade.”
4. The sting: The scammer, often still in communication, will insist you need to send that additional money (usually to a provided PayID) so the $500 can be released to you. They may pressure you by saying it’s urgent or “I’ve already sent the $500, it’s waiting on you to upgrade.”

Of course, there is no real $500 payment – it’s a hoax. If you send the “upgrade fee,” that money goes straight to the scammer, and you receive nothing.

This type of scam has been primarily seen in buy/sell contexts, but gamblers should be cautious as well. For instance, imagine a scammer posing as a fellow player or a service offering “guaranteed betting tips for a fee,” asking you to PayID money. Or someone impersonating a casino rep telling you to pay a fee via PayID to unlock a big bonus or withdrawal.

Why Aussie Gamblers Should Care

• Scammers impersonating casinos: It’s not impossible a scammer could pretend to be from a casino’s support team, telling you, “We tried to send your withdrawal via PayID but there’s a problem – you need to pay a fee to release it.” A legitimate casino would never ask for that. If you ever get such a message (especially if it’s an email that doesn’t come from the official casino domain or a random text), it’s a scam.
• Targeting via community: Gamblers sometimes engage in peer-to-peer transactions (like selling bonus credits, sharing betting pools, etc.). Be extremely careful trusting strangers in these scenarios. A scammer could lure you with a small payment via PayID (to gain trust) and then try a larger scam transaction.
• General increase in PayID scams: According to Scamwatch, PayID-related scams resulted in hundreds of thousands of dollars lost in Australia last year. They are on the rise, meaning more Australians are encountering these tactics. Gamblers, who are used to moving money around online, should stay alert that not everyone asking for a PayID transaction has good intentions.

Red Flags to Watch For

• Being asked to send money to receive money: This is the number one red flag. With PayID, you never have to pay to receive a payment. There are no “upgrade” or “release” fees. If anyone tells you otherwise, it’s a scam, full stop.
• Communication from “PayID” or a bank about a pending payment: PayID as a service does not send you direct emails or texts. Only your bank would notify you of transactions, and they wouldn’t ask you to pay fees to get a credit. Fake emails often have poor grammar or odd sender addresses. For example, an email that claims to be from CommBank PayID but the sender is something like randomname@gmail.com is obviously not legitimate.
• Urgency and secrecy: Scammers often pressure you (“Do it now or you’ll miss out”) and ask you not to involve others. If someone is pushing you hard and it sounds fishy, step back and consult someone you trust.
• Out-of-the-blue offers: If someone contacts you about money or a prize that you weren’t expecting, be skeptical – especially if they quickly ask for a payment. And if they want a “delivery” or “processing” fee via PayID, it’s almost certainly a con.
  

How to Stay Safe

• Never send money to get money: Repeat that to yourself. If the situation arises, remember it’s virtually always a scam scenario.
• Verify independently: If you get an email or text claiming to be from a casino or bank about a PayID issue, contact the casino/bank through official support channels (their verified website or customer service line) to confirm. Don’t use the contact info provided in a suspicious message.
• Use PayID only with trusted parties: When it comes to gambling, only use PayID to deposit/withdraw with reputable casinos and perhaps with people you personally know. Don’t send PayID payments to individuals offering deals that sound too good to be true.
• Check sender details: In scam emails, if you click the sender name, you often see an unrelated or personal email address. That’s a giveaway that it’s not legitimate. Similarly, no genuine bank or casino will email you from a free email service address about payments.
• Stay informed: Banks like Commonwealth Bank and Westpac post scam alerts on their websites. Keep an eye on those; they often highlight the latest tactics scammers are using. Being aware of current scams (like this PayID “upgrade account” scam) means you’re less likely to fall for them.

What to Do If You Suspect a Scam

• Cease communication: If someone is giving you bad vibes or making unusual requests related to PayID payments, stop responding.
• Do not send any more money. Sometimes scammers try to milk a victim by saying the fee wasn’t enough and asking for more. Don’t fall further in.
• Contact your bank immediately if you did send money to a scam PayID. Explain the situation; while getting money back isn’t guaranteed (PayID transfers are instant and final), the sooner you report it, the better the chances. Banks can sometimes flag the receiving account for investigation, and law enforcement can get involved.
• Report the scam: You can report it to Scamwatch (ACCC) and also to your bank. If the scam involved someone impersonating a casino or a known company, let that company know as well. Reporting helps authorities track scammers and issue warnings to others.

Final Thoughts

PayID scams are a reminder that even a secure system can be abused through social engineering. For Aussie gamblers, the main takeaway is: your PayID transactions with legitimate casinos are safe – just be cautious when someone else initiates a money request outside of that trusted environment.

Always remember that real PayID casinos or banks will never ask you to pay extra to receive your own money. If you stay alert to the red flags and follow the safety tips above, you can enjoy the convenience of PayID while avoiding the traps set by scammers.