14 Ate Today? Thank a Farmer. Better Farming | February 2024 Avoiding scams Zoran Zeremski - stock.adobe.com EDUCATION IS THE BEST WAY TO KEEP YOUR FARM BUSINESS SAFE. AVOIDING SCAMMERS By EMILY CROFT Farms, like every other business, are at risk of being targeted by scammers. It can feel challenging to determine what is safe, as more business transactions move to a remote platform – over the phone or the internet. 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 the cost of 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. In Ontario, the OPP has reported an increase in merchandise frauds involving farm equipment. John Armit, acting detective sergeant with the Anti-Rackets Branch of the OPP, says that this uptick in reports was seen before harvest in the summer of 2023. “What happens is the fraudster grabs an image from an auction or trading website in the U.S. and will copy the information and put it on a Canadian website,” explains Armit, who suggests a careful, cautious approach for Canadian farmers looking at equipment in the U.S. “That same image and info is now on Canadian platforms, and Canadian farmers who are looking to purchase will see it and contact them. They are now in direct communication with the fraudster. “We’ve seen money wired to the United States, and once the money is sent, the communication is ceased or there is suddenly some excuse for why the equipment can’t come to Canada.” Armit says that equipment listed below market value should be a major red flag when shopping. He also recommends that, if possible, farmers make an effort to see equipment in person before making purchases. Horncastle notes that fraud is a risk to all farmers. “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,” says Horncastle.
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