A police strike force has been established to investigate reports that scammers are trying to target desperate farmers with fake social social media advertisements for fodder.
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NSW Police rural crime investigators established Strike Force Woden after receiving numerous reports of a person advertising hay bales for a discounted price.
In each of the cases, the seller has taken an initial deposit for the fodder but has not delivered any product and a number of people have lost money.
The fraud is not isolated to a specific area, police said.
State rural crime coordinator, Detective Inspector Cameron Whiteside, urged farmers and landholders to take extra care when purchasing fodder, water and other supplies to get them through the drought.
"These are difficult times, and it's disgusting to think anyone would seek to take advantage of people who have already been through so much," Detective Inspector Whiteside said.
"I would encourage anyone buying supplies online to only deal with people and businesses that have proven to be genuine in the past.
"Where possible, it is best to only hand over money until the goods are in your possession.
"And of course, the age old saying applies - if it sounds too good to be true, it usually is."
Detective Inspector Whiteside also appealed for anyone who thought they may have fallen victim to the scam to come forward and report it.
"It is important not to be embarrassed - scams succeed because they look like the real thing and catch people off guard," he said.
"Our officers need as much information as possible in order to investigate these crimes thoroughly and find those responsible.
"If you have any information that might assist our investigators, please contact Crime Stoppers on 1800 333 000, or https://nsw.crimestoppers.com.au."