Scam Alert: Protecting Your Agribusiness from Fraudulent Farm Gate Deals

As agritourism operators, investing in machinery and livestock is often part of the business. Unfortunately, scammers are increasingly targeting farmers and rural businesses with sophisticated tactics, making it crucial to be vigilant and protect your hard-earned money.

Common Farm Gate Scams

Criminals are devising increasingly convincing scams, including:

• Fake Machinery Deals: Offers of heavily discounted tractors, harvesters, and other equipment through professional-looking websites or advertisements. These deals are often “too good to be true,” designed to lure in unsuspecting buyers.
• Livestock Scams: Fraudulent sales of livestock, such as donkeys, chickens, and other animals, where buyers pay but never receive the animals.

Red Flags to Watch Out For

• Unrealistic Prices: Be wary of deals significantly below market value. If it seems too good to be true, it probably is.
• Bank Transfer Requests: Scammers often insist on payment via bank transfer, as this method makes it difficult to recover your money. Opt for secure payment methods like credit cards or PayPal, which offer better buyer protection.
• Inability to Inspect in Person: Be suspicious if the seller avoids in-person inspections with various excuses. Whenever possible, inspect machinery or livestock yourself, or send a trusted representative.
• Requests for Personal Information: Be cautious of sellers asking for excessive personal information, as this could be a sign of identity theft.

Protecting Yourself

• Verify the Business: Research the seller thoroughly. Check their ABN, address, and online presence. Use Google Street View to verify the business location and contact nearby businesses to confirm their existence. Reverse image search any photos used in the advertisement.
• Seek Recommendations: Ask your network of fellow farmers, friends, and family for recommendations. Word-of-mouth referrals can be invaluable.
• Trust Your Instincts: If something feels off, don’t hesitate to walk away from the deal.

What to Do if You’ve Been Scammed

If you believe you’ve fallen victim to a farm gate scam, don’t be embarrassed to report it. Contact Consumer Protection WA through ScamNet (scamnet.wa.gov.au) or by phone at 1300 30 40 54. You can also email consumer@dmirs.wa.gov.au. Reporting these scams helps protect others from falling victim to similar tactics.