Warning signs in online equipment sales
The Federal Trade Commission says scammers are posing as legitimate farm-equipment companies through online ads, fake websites and fraudulent listings. The agency warns that such operations may use convincing equipment photographs, purchase agreements and other business details before demanding payment and ending contact. Buyers should research a company, check for complaints or scam reports, scrutinize sponsored search results and online advertisements, and avoid wire transfers, cryptocurrency and payment apps. They should also be cautious when equipment is priced well below market value or a seller presses them to act quickly, according to the FTC.
A Colorado buyer’s reported loss
The FTC warning provides context for the reported experience of Stephen Hunt, who lives southeast of Calhan in El Paso County. Hunt told Denver7 that he sent $20,000 for a backhoe he found through an online site he believed was legitimate. The station reported that the seller initially sought $21,000 and agreed to the lower price after negotiations.
The backhoe was not delivered, Denver7 reported. Hunt said the seller first attributed the failure to a mix-up and later stopped responding. Details about the website and the alleged investigation of it were reported by the station and have not been independently confirmed here.
The national scale of online nonpayment scams
The problem extends beyond equipment sales. According to the FBI's Internet Crime Complaint Center, 859,532 complaints and $16.6 billion in reported losses were recorded in 2024, with losses increasing 33 percent from 2023, according to the FBI's 2024 IC3 report.
The FBI's IC3 materials list $503 million in reported losses for complaints categorized as Non-Payment/Non-Delivery. That category includes the basic pattern described in equipment-sale warnings: money is sent, but the promised goods do not arrive, according to the FBI.
Similar complaints elsewhere
The Canyon County Sheriff's Office in Idaho has described a comparable pattern involving online tractor and farm-implement sales: buyers arranged purchases, sent money and then received neither the equipment nor further responses. The office said some fraudulent sites used photographs and addresses that made the businesses appear genuine, and advised consumers to verify a company before paying and not to use cryptocurrency or wire transfers. Its alert is available from the Canyon County Sheriff's Office.
The Better Business Bureau also warned about a scheme that impersonated Cook Equipment & Trucking, a Missouri dealership. Buyers in seven states reportedly lost a combined $223,000 after responding to fraudulent machinery listings, according to Farm Journal's account of the BBB warning. The real dealership had no online sales presence, the report said.
Where to report suspected fraud
The FTC directs people who believe they were targeted by an online equipment scam to file a report at ReportFraud.ftc.gov. The article's existing guidance also directs victims to the FBI's Internet Crime Complaint Center at ic3.gov. Reporting promptly can help authorities track such cases and assess whether recovery may be possible.
What to do after sending money
The FBI recommends reporting suspected internet fraud to the Internet Crime Complaint Center as quickly as possible and contacting the financial institution involved immediately to try to stop or reverse the transaction. Recovery is not guaranteed, but prompt action may help authorities track the fraud and give the institution an opportunity to respond.
