Invoice scams are affecting farmers across the UK and causing significant financial losses. In 2022, invoice fraud within farming communities accounted for 35 reports made to Action Fraud, while 2023 saw a 50% increase, with 54 reports filed. Consequently, farming insurer Kyle Lomas has seen a dramatic rise in the number of scammed farmers and anticipates a continued rise. “Some farms only make £10 – 20,000 profit in a year. So that can wipe out the whole profit for a number of years for a farmer and could be the end of that farm,” warns Lomas.
Alan Steven, a farmer who runs a farm near St Andrews in Fife, fell victim to a sophisticated invoice scam after his email account was hacked. The scammers cloned his genuine invoices and swapped in their own bank details, leading Steven to unwittingly pay a building contractor £12,000 and a grain merchant £16,000. After Steven contacted his bank and claimed insurance, he was able to retrieve part of the money, but was still left out of pocket by £16,000. He commented later on the emotional toll: “Completely gutted. You’re out of pocket. You’re never going to see that money back again. Basically, it was the equivalent of your year’s wages you’ve lost. I’ve suffered from depression in the past, and obviously, you know you’re trying to be positive. But you can’t just forget about it.”
Rob Alderson had a similar experience when he was scammed out of £6,200 he thought he was paying for farm equipment. Alderson family had been farming near Ludlow in Shropshire for over a century, with arable crops and livestock on their 420 acres. As soon as he paid £6,200, the scammer disappeared. Fortunately, Alderson eventually got his money back from his bank.
Researchers at Harper Adams University in Shropshire have found that these scams can and do impact farmers’ mental health. Various emotional conditions can arise such as anxiety, paranoia, lack of sleep, and suicidal behaviour. The criminals behind the schemes are adapting their tactics quickly, staying up-to-date with the agricultural calendar and using key events to exploit farmers. Furthermore, criminals are aware that farmers’ minds are focused on the budget and some are using inheritance tax as an excuse for scamming
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