As technology has increased over the decades, so has the potential for scammers and con artists. A number of agriculture producers and organizations are warning against an increase in scam artists within the livestock industry now.
Ranchers in Oregon spoke with Capital Press about some scams they were wary of after a few different red flags alerted them of a potential scam. Santos Angus Ranch sells bulls, cows and heifers, and received text messages from a potential buyer who was interested in the animals. The ranch said they had a bull that was available, and a price and delivery location was agreed upon with the texter.
The buyer then sent payment from a Houston, TX, address to the Santos Angus Ranch for $1,900 more than what was originally agreed upon. When asked about this payment, the buyer said that their company had made a mistake and asked for the Santos Angus Ranch to wire back the balance.
“They wanted us to wire $1,900 back in a personal or cashier check to a South Carolina account,” said Santos in his interview with Capital Press. He then called the Houston company to check on its status. “It was supposedly a financial company, but when I called, it just rang and rang and rang. I left a message, but was never called back.”
Santos then turned the check into his bank, which followed up stating there were insufficient funds. Additional red flags that Santos noticed in the interaction were that the “buyers” were asking for health papers. Considering the buyer wanted the bull to be transferred to another Oregon location and claimed to be an Oregon resident, health papers were not required—only if the livestock crossed state lines.
Santos Angus Ranch said they’ve begun to hear of these scenarios happening to others in the industry. They have encouraged others in the industry to invite these potential buyers to whatever online or live sale they do business through, if they do not have concrete knowledge that the buyer is legitimate.
Across the country, the Kentucky Department of Agriculture (KDA) has also seen reports of increased scams over the past few years, especially during the increase of technology that came with the COVID-19 pandemic. KDA provided insight and advice for those who are concerned that they potentially are being targeted.
“The Kentucky Department of Agriculture (KDA) has received several reports of fraudulent hay-buying activity,” Commissioner Ryan Quarles said in a 2020 report, noting at least three Kentucky producers were targeted multiple times by scammers, with one losing $1,000. “Farmers should take extra care to protect themselves from scam artists when buying or selling commodities such as hay or livestock, especially when contacted through email, social media or text message,” he said
Additionally, the KDA warned buyers to also beware of fraudulent sellers. Some “sellers” even create false Facebook pages and websites to mimic legitimate businesses. Buyers and sellers are encouraged to not do business if any warning signs are present and communication has not been transparent. They also advise creating a written contract to protect against issues if there is any hesitancy about the transaction.
In April of last year, a Wisconsin operation was on the other side of these scams. Golden E Dairy in Kewaskum, WI, began receiving messages through Facebook, text messages and voicemails asking about cattle that were available. Some individuals even arrived on site, stating they made a down payment already and were told to pick up at the location.
Authorities were contacted in this case, and the Facebook posts were flagged for fraudulent content. Kim Saari, one of the Golden E Dairy staff members that was caught up in the Facebook scam, has been working to try and respond to all the messages from scammed buyers. She told the Mid-West Farm Report, “It’s sad because these people have put a down payment on cattle that don’t exist—at least not here.”
Ranchers and farmers are encouraged to remain vigilant in their business practices and if anything seems concerning to bring it to the attention of authorities. It is better to beware of potential scams than to be a victim. — Chloé Fowler, WLJ correspondent
