Protecting your operation from fraud is essential in today’s digital world. Whether you’re buying machinery, livestock, land, or even farm inputs, knowing the warning signs can save you from significant losses. Here are key red flags Missouri farmers and ranchers should look out for:
Pricing and Urgency Tactics
Prices Too Good to Be True: If the deal seems incredibly low compared to market value for equipment, livestock, or land, it’s a major red flag. Scammers use enticingly low prices to bait victims into a quick, fraudulent transaction.
Pressure to Act Quickly: Scammers often create a false sense of urgency, claiming “limited-time offers” or that “another buyer is waiting.” This tactic aims to rush you into a decision before you have time to thoroughly investigate or consult others.
Payment Method Warning Signs
Fraudsters commonly request payment methods that are difficult to trace or reverse, allowing them to quickly disappear with the funds. Be cautious if a buyer or seller insists on:
- Upfront wire transfers or bank transfers before any equipment is seen or delivered. While these types of transfers are commonly used, they should be done so with caution. They’re nearly irreversible once sent. Be very skeptical if the instructions for where to send an electronic transfer change during the transaction.
- Requests for payment via checks can be used to exploit delays in verification. Scammers send fake checks to overpay and ask for refunds.
- Digital Wallets/Apps have limited buyer protections and can be used by fraudsters due to the quick transaction processing and ability to keep them anonymous.
Identity Verification for High-Value Transactions
When buying or selling equipment, livestock or land, take these verification steps:
- Request multiple contact methods: Don’t rely solely on email or text. Ask for a phone number and make a voice call. Many scammers avoid phone conversations.
- Ask specific agricultural questions: A legitimate buyer or seller will easily answer questions about their operation, equipment, or farm management practices. Vague or generic responses are warning signs.
- Demand current photos with verification: For equipment or livestock sales, request photos taken with today’s newspaper or a sign with your name and current date. This proves the seller currently has possession of the item.
- Verify their online or agricultural presence: Search online for their farm or company name. Check if their claimed location and operation type align with public records.
Verification Problems
- New or Unestablished Sellers: Be wary of sellers with little to no online presence, reviews, or verifiable history in the agricultural community.
- No Physical Location or In-Person Meeting: If the seller avoids providing a physical address or refuses an in-person meeting (for equipment or livestock viewing), proceed with caution.
- Inability to Inspect Item: The seller won’t allow you or a trusted third party to physically inspect the equipment, livestock, or land before purchase, or they offer only vague photos/videos.
- Unclear Title or Ownership for Land/Equipment: Unclear ownership, missing lien releases, or a reluctance to provide proper documentation (such as a clear title or bill of sale) for land or equipment purchases can indicate a scam.
- Vague or Evasive Communication: The seller avoids answering direct questions about the product, its history, or their identity. Communication may be inconsistent, have poor grammar, or seem automated.
Digital Deception: Online Warning Signs
- Website/Listing Inconsistencies: If the price is too good to be true, or the business contact information is sketchy, consider it a flashing red light.
- Poor Quality Websites: Watch for misspelled words, unprofessional design, or generic contact information on dealer websites.
- Stolen Images/Descriptions: Equipment or livestock photos that appear to be lifted from other websites or descriptions that are too generic.
- URL Manipulation (Typosquatting): This is one of the most common and effective ways scammers try to trick you. They register domain names that are very similar to legitimate ones, hoping you’ll make a slight typing error or not notice the difference.
- Subtle letter changes: amazn.com instead of amazon.com.
- Different Top-Level Domains (TLDs): .co instead of .com.
- Hyphens or extra words: securetractorsales.com when the real site is tractorsales.com
If You Suspect Fraud
Document everything: Emails, phone numbers, photos, and any other communications. Then report the suspected fraud to the proper authorities.
For most consumer fraud: Report to the Federal Trade Commission at ReportFraud.ftc.gov.
For internet-related scams: File a complaint with the Internet Crime Complaint Center at ic3.gov.
For Missouri-specific issues: Contact the Missouri Attorney General’s Consumer Protection Division.
For immediate threats: Contact your local law enforcement agency.
