Farmers and rural and regional small businesses are being urged to be cautious, particularly when purchasing heavy machinery. The warning comes on the back of a noted increase in scams targeting rural businesses. The latest data from ACCC’s Scamwatch show these businesses lost more than $1.2 million to scammers during the period 1 January and 31 August 2022, a more than 20 per cent increase compared to the same period last year.
The most common scam targeting farmers involved the sale of tractors and heavy machinery, with losses to this scam topped $1 million so far this year. These scammers have employed more sophisticated methods to trick victims, 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.
“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,” ACCC Deputy Chair Mick Keogh said. “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.
“Scammers are highly sophisticated in the ways they impersonate a business – some fake websites have ABNs for instance – which is why we are urging farmers and business owners to be alert to the scam risks and do extra checks to avoid getting caught out,” Keogh added.
Farmers and small-business owners are reminded to first verify the existence of a business by searching the address of the business and calling a nearby business so they can be sure that the seller is who they say they are.
“Many scams can be revealed by doing an internet search of the exact wording in the ad. Never click on a link provided to you by the seller or pay upfront, even if you are promised the money is refundable,” Keogh cautioned. “Ask to pay at the time of delivery or pickup. If possible, inspect the machinery in person or via live video first. Scammers will often have an excuse as to why machinery can’t be inspected in person and that is a red flag for any buyer.
“Scammers may advertise machinery at lower prices than the typical market rate,” Keogh added. “As always, if it looks too good to be true or if you feel pressured in any way, chances are it’s a scam.”
Farmers and small-business owners are also highly advised to not give too much personal information as scammers are targeting more than just money.
“Legitimate sellers will only ever ask for enough information to deliver what you’ve ordered, so it is important not to give too much personal information over the phone or online as you may fall victim to identity theft,” Keogh said.
Those who have provided personal information and are concerned that they may have been scammed are urged to contact IDCARE immediately at idcare.org.
Businesses, regardless of whether they have lost money, are also encouraged to report scams and learn more about how to get help on the Scamwatch website at scamwatch.gov.au.
