The PayID Overpayment Scam: How a Melbourne Woman Nearly Lost $500 Selling Her Laptop

Alexandra Duffin was doing what thousands of Australians do every week. She listed her laptop on Facebook Marketplace, hoping to make a quick sale. What happened next is a textbook example of the PayID overpayment scam, and it almost cost her $500.

What Happened

The 29-year-old Melbourne resident received a message from a buyer interested in her laptop. The conversation started normally. The buyer asked if the item was still available, and Duffin confirmed it was, mentioning that she had lost the charger.

"That's fine. What's your pickup address?" the buyer replied.

They arranged to meet at a local restaurant. Then came the first red flag: the buyer said she could not meet in person but would send a sibling to collect the laptop. She requested to pay via PayID.

Duffin provided her email address for the PayID transfer. The buyer sent back what appeared to be a bank statement showing the transaction amount and Duffin's name. So far, nothing too unusual for an online sale.

Then things got strange.

The buyer said she needed to send an additional $500 on top of the laptop price. The total would be $1,200 credited to Duffin's account "immediately." The catch? Once Duffin received the money, she would need to refund the extra $500 back to the buyer.

Shortly after, Duffin received an email with a screenshot appearing to confirm $500 had landed in her account. The buyer then asked for the refund.

Here is where Duffin spotted the scam.

"After I looked at the email, it said it was a Gmail account. I realised this is a scam," she told SBS News.

How the Scam Works

The PayID overpayment scam relies on fake payment confirmations. Here is the breakdown:

1. The scammer contacts a seller on Marketplace and agrees to buy an item
2. They request to pay via PayID and ask for your email address
3. They send a fake email or screenshot showing a payment has been made
4. They claim they "accidentally" sent too much money
5. They pressure you to refund the difference before you realise no money ever arrived

The fake emails often come from Gmail addresses rather than official bank domains.

Real PayID notifications come directly from your bank, not from PayID itself or any third party.

According to the ACCC, scammers commonly ask for payment methods like pre-loaded gift cards, bank transfers, and cryptocurrency because these are difficult to trace or reverse.

The Bigger Picture

This is not an isolated incident. The ACCC's Scamwatch received over 11,500 reports of classified scams in 2023 alone. NAB reported that buying and selling scams increased by 78% in the latter half of that year.

In 2024, Australians reported combined losses of $2.03 billion to scams across all categories. Social media was the most common contact method leading to financial loss, with $69.5 million lost through platforms like Facebook.

The ACCC has a clear message: sellers should never pay money to complete a sale. If someone asks you to send money as part of selling an item, it is a scam. Full stop.

The Bottom Line

Alexandra Duffin was lucky. She spotted the Gmail address and stopped before sending any money. Many others have not been so fortunate.

The lesson is simple: when you are selling something online, you should be receiving money, not sending it. Any request that involves you transferring funds back to a buyer is a scam. No exceptions.

If a deal feels off, trust your instincts. Take a moment to verify before you act. That pause could save you hundreds or thousands of dollars.