Avoiding Scammers

Tuesday, February 27, 2024

Education is the best way to keep your farm business safe.

By Emily Croft

Farms, like every other business, are at risk of being targeted by scammers.

The Canadian Anti-Fraud Centre (CAFC) stated that losses from reported frauds increased from $165 million in 2020 to $379 million in 2021. These numbers don't include losses from the many instances of fraud which weren't reported.

"Fraud is, across the board, generally unreported. It's estimated that only five to 10 per cent of cases are reported," explains Jeff Horncastle, Client and Communications outreach officer at CAFC.

"It's a huge problem that is likely into billions of dollars lost."

As prices for equipment and commodities increase and more money changes hands, there may even be scammers who specifically focus on the agriculture industry.

How can farmers protect themselves and their businesses from fraudsters?

What's out there?

Over the past few years, the farm community has seen common reports of scams involving equipment, hay, grants, and more.

These scams seem to take advantage of those who are looking for a deal or experiencing financial stress. Hay scams seen across the Prairies in 2021 and 2022 have seemingly targeted producers desperate for feed for livestock after years of drought.

"With these challenging times in the economy, I would say most farmers are at risk because everyone is trying to save a bit of money. Anyone could be targeted," explains Horncastle.

Joel Bouvier, director of Cyber Security at Farm Credit Canada, says that there are a wide variety of scams that can affect farmers.

"It could be anything. We've seen fraudulent equipment and supplies sales, some invoice scams, online bidding and auction scams suggesting you might receive a discount if you pay direct, grant scams, or government rebate scams," says Bouvier.

Farms that use a lot of technology, such as hog and dairy farms, may also be at high risk. Sometimes the high-tech systems can be taken over, disrupting operations.

"It's becoming more pervasive. It used to be targeted at larger organizations, but now we see it happening to small farming operations too," explains Bouvier.

"There are hackers out there that specifically target agriculture. They are just putting stuff out there and hoping someone will take the bait."

Alberta Canola found themselves targeted by scammers in 2022 through a sophisticated phishing attack.

"Similar to how many others are deceived, it was by a targeted fake boss email scam," says Ian Chitwood, vice chair at Alberta Canola.

"It came through email, so it looked legitimate, but it wasn't."

Chitwood says the scam came shortly after changes were made to the executive director of the commission. The announcement was shared publicly and was used by the scammers.

"It seems that scammers try to take advantage of transitions or changes in organizations," says Chitwood.

"They requested payment for a doctored invoice and changed the banking information to a fake account, so it didn't go to the right place. It was caught when they made a second attempt using the same invoice."

The fraud was reported to police and Alberta Canola's financial institution and was investigated, but not all the funds were successfully recovered.

As these attempts become more common, what warning signs should farmers watch for while conducting their business?

Keeping your farm safe

It's important that all members of the farm are trained in what to look for when avoiding scams.

"There are a few common things people can look for," explains Bouvier.

"Ask yourself if this is too good to be true. Is it too good of a deal? One of the common footprints of fraud is that they are playing on emotions and trying to get a knee-jerk reaction or playing on self-interest. That's the deal portion."

It's also important to verify sources to avoid scams. As an example, producers can research the seller and location of equipment, or investigate email senders.

Horncastle suggests farmers should "do as much research as you can. You can look up the URL or domain that fraudsters are using for links or emails. There are also ways to verify when a website was created.

"If you're getting emails asking you to download attachments or click on links, take time to look at where it's coming from."

Bouvier asks, "if an email appears to be coming from a known person, does it follow typical interactions with that company? Independently verify with that person if they are asking you to phone somewhere or send money. Don't just trust it."

Spear phishing is an increasingly common type of scam that uses information about the target to personalize their approach to one specific victim. Sometimes, specific details are accessed publicly, or they can be accessed when a business's network is compromised by clicking links or downloading files.

"Victimization can happen quickly, and suspects can infiltrate the business's network, and it can lead to spear phishing," says Horncastle.

There are a few important tips for avoiding scammers and increasing the security of farm businesses.

"The first step is just training themselves and their employees to be able to recognize the warning signs of phishing," says Bouvier.

"Never give out personal info, and if it's a known person contacting you, make sure you verify."

Keeping technology protected and clean will also reduce the risk of being a scam victim.

"Password hygiene on your accounts is important. Use complex passwords and multifactor authentication in case someone has your password," says Bouvier.

"Don't reuse passwords on your accounts. Anti-virus and anti-malware software can also help protect your devices, and if it finds something malicious, it can actually help block them."

Both Bouvier and Chitwood recommend keeping devices updated, noting that out-of-date software can be exploited by scammers.

Chitwood explains that after being targeted in 2022, Alberta Canola made some updates to their protection tools and prevention practices.

"We have a new firewall that does 24/7 network and security monitoring," says Chitwood.

"The board audited the internal protocols, and we've increased staff and director training. We used our auditor's risk forensics services, and a lot of the best practices they recommended we brought in, and we continually monitor the risk."

There are also a few programs that are designed to reduce the fraud risk.

Get Cyber Safe is a national program to increase awareness of cyber safety. It features information about securing accounts, devices, and connections.

The Canada Digital Adoption Program (CDAP) is also a nationally administered program offering grants for improving technology. Businesses can apply for the Boost Your Business Technology grant for up to $15,000 in funding. One eligible application of this funding is boosting business cyber security.

What if you've been scammed?

You don't need to be the victim of a scam to report something suspicious.

"If something is suspicious it's important to report it," says Horncastle.

"You don't have to be a victim to report it. Flag it to the platform it's on and report it to the Canadian AntiFraud Centre with the contact info and payment info they are requesting. Never send money or personal info if you believe something is suspicious."

If you do find yourself the victim of a scam, don't be embarrassed.

"A lot of the time people are embarrassed, so they don't react right away. Don't be embarrassed – it happens," says Bouvier.

"Contact your bank and credit cards and report them so they can stop any transactions. Contact a credit monitoring service so they can alert you if anyone is trying to take out loans in your name or any other suspicious activity. Set up a temporary credit freeze so that no one can set up a loan in your name, until you can take other actions."

Bouvier suggests having these steps listed as part of a farm protocol before a scam occurs.

"Make a plan for what happens when the worst occurs. Then you don't have to rely on emotions when you are all hyped up in the moment."

The scam should be reported to the RCMP so that a report can be filed.

It should also be reported to the CAFC so that it can be shared with international law enforcement agencies and scam losses can be accurately quantified.

Is it possible for producers to get their money back after being scammed?

Horncastle says it's unlikely, but it depends on a few factors.

"The chances are slim, but it does depend on how the money was sent. If you used a financial institution or wire transfer, reach out to the bank about getting the money back, if possible," explains Horncastle.

Bouvier says it can also depend on where the scammer is based, as many are located outside of Canada.

As scammers become more creative and the risks of fraud increase, prevention is becoming critical for the safety of farm businesses. Taking the time to become educated in cyber security and fraud prevention and taking extra precautions when making purchases or exchanging information or money can help reduce your risk. BF