Protecting Australian Farmers: Rising Scams Targeting Agriculture and Machinery Sales

Jul 03, 2023    Posted by Brittany Cunningham

Scammers trick people through a range of ever-evolving methods such as providing a contract of sale, answering questions about the potential sale of machinery by phone or email, or offering a free trial period once money is deposited into an escrow account, which is actually part of the scam.

[ACCC]

Instances of scams specifically targeting Australian farmers, particularly in relation to the sale or purchase of heavy machinery, livestock and farm equipment, are becoming more common.

One Western Australian farmer in October last year was scammed out of $16,500 after partaking in an apparent cattle auction on Facebook Marketplace. After transferring the money, he was directed to a property in Keysbrook, only for the farm owners to have no idea of the transaction.

Attempts to contact the seller proved fruitless as the Facebook account had been deleted.

According to the Australian Competition & Consumer Commission (ACCC) farmers and small businesses in rural and regional areas are “…urged to be cautious, particularly when buying heavy machinery, following a spike in scams targeting the agricultural sector.”

One common scam is the “overpayment scam”, where a supposed buyer will transfer funds for more than the agreed-upon price and ask the seller to refund the excess amount back to them. The original transfer is often fraudulent, however, and leaves the seller out of pocket.

Another type of scam doing the rounds are websites claiming to sell discounted second-hand farm machinery, only for products to be paid for but not then delivered.

In addition to these specific scams, farmers may also be vulnerable to more general types of fraud, such as phishing scams or identity theft.

“Scammers are ruthlessly luring farmers and rural businesses with seemingly good online deals on tractors and other farm machinery through fake websites or bogus classifieds on legitimate platforms and publications,” said Mick Keogh, ACCC deputy chair.

“Unfortunately, we have seen a concerning rise in agricultural scams in recent years, as farm businesses increasingly purchase machinery online. These scams are causing substantial financial losses and emotional devastation.”

Independently verifying the existence of a business by searching the address of the business and calling a nearby business, is an important step in ensuring the seller is who they say they are.

Farmers should be cautious when dealing with unfamiliar buyers or sellers, verify the authenticity of invoices and payment methods, and be wary of any requests to electronically transfer funds or provide personal or financial information.

“As always, if it looks too good to be true or if you feel pressured in any way, chances are it’s a scam,” said Mr Keogh.

If you have suspicious activity to report don't hesitate contact www.scamwatch.gov.au or www.cyber.gov.au/acsc/report.

Article sourced from: The Australian Farm Machinery Magazine