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Beware of tractor scammers

FARMERS and small businesses in rural and regional areas have lost more than $1.2 million to scammers this year, an increase of more than 20 per cent compared to last year, according to the Australian Competition and Consumer Commission (ACCC).

Reports to the ACCC’s Scamwatch show a spike in agricultural businesses vulnerable to supply issues, being scammed between January 1 and August 31, 2022.

The pandemic has led to significant changes in commercial practices across the entire economy, including buyer behaviour with many businesses no longer relying on the traditional bricks-and-mortar model.

This phenomenon has spread to rural and regional areas of Australia across a range of industries, including the agricultural sector.

The ACCC reported that NSW residents were most impacted with $373,487 in losses from 78 reports.

This was followed by Queensland with over $360,000 in losses from 88 reports, and Victorians reported $191,219 in losses from 58 reports.

ACCC deputy chair, Mick Keogh, said the most common scam targeting farmers involved purchasing tractors online.

In addition to tractors, other heavy machinery such as backhoes, excavators and bobcats were advertised through fake websites or classified listings.

One Victorian case reportedly involved a loss of $175,000 on a single tractor purchase - losses to this type of scam have topped $1 million so far this year.

“These scams are causing substantial financial losses and emotional devastation,” Mr Keogh said.

“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.

“Unfortunately, we have seen a concerning rise in agricultural scams in recent years, as farm businesses increasingly purchase machinery online.”

National Centre for Farmer Health (NCFH), director and associate Professor, Alison Kennedy, said the reports of scamming of farmers links in with the broader risk of farm crime and the impact this has on mental health.

“Victoria Police have told us (NCFH) that farm crime is often under-reported (e.g. stock theft, theft of fuel),” she said.

“But farmers can often be the key eyes and ears in a community that helps identify farm crime and report suspicious behaviour.

“Farm crime can have short and long-term impacts.

“There is the immediate financial cost and inconvenience, but also the longer-term impact on operations, finances, increased insurance premiums, and mental health (and) this can create a sense of vulnerability, isolation and anxiety associated with financial stress.”

Mr Keogh said scammers are highly sophisticated - some are fake websites and have ABNs.

“We are urging farmers and business owners to be alert to the scam risks and do extra checks to avoid getting caught out,” he said.

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.

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.

“Many scams can be revealed by doing an internet search of the exact wording in the ad,” Mr Keogh said.

“Never click on a link provided to you by the seller or pay upfront - even if you are promised the money is refundable.

“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.”

Mr Keogh said scammers may advertise machinery at lower prices than the typical market rate.

“Always be aware that if it looks too good to be true or if you feel pressured in any way, chances are it’s a scam,” he said.

Farmers are also being warned against giving too much personal information.

If you have provided personal information and are concerned, contact IDCARE immediately at idcare.org

If you have experienced cybercrime and lost money online, you can report to police via ReportCyber at cyber.gov.au/acsc/report

For crisis support to help with emotional distress about scams, contact Lifeline by calling 13 11 14 or via the online chat between 7pm and midnight at lifeline.org.au

Beyond Blue also provides support for anxiety and depression at beyondblue.org.au

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