Reports to Australian Competition & Consumer Commission (ACCC) Scamwatch show Australian farm businesses lost more than $1.2 million to scammers between 1 January and 31 August this year, an increase of more than 20 per cent compared to the same period last year.

According to the ACCC, the most common scam targeting farmers involved the sale of tractors and heavy machinery, with losses to this scam alone topping $1 million to date.

ACCC Deputy Chair, Mick Keogh, said scammers are ruthlessly luring farmers and rural businesses with seemingly good online deals on tractors and other farm machinery through fake websites or bogus classifieds on legitimate platforms and publications.

"Unfortunately, we have seen a concerning rise in agricultural scams in recent years, as farm businesses increasingly purchase machinery online. These scams are causing substantial financial losses and emotional devastation," he said.

"Scammers are highly sophisticated in the ways they impersonate a business, some fake websites have ABNs for instance, which is why we are urging farmers and business owners to be alert to the scam risks and do extra checks to avoid getting caught out," Mr Keogh said.

Scammers trick people through a range of methods such as providing a contract of sale, answering questions about the potential sale of machinery by phone or email, or offering a free trial period once money is deposited into an escrow account, which is actually part of the scam.

"Many scams can be revealed by doing an internet search of the exact wording in the ad. Never click on a link provided to you by the seller or pay upfront, even if you are promised the money is refundable. Ask to pay at the time of delivery or pickup," Keogh said.

"If possible, inspect the machinery in person or via live video first. Scammers will often have an excuse as to why machinery can't be inspected in person and that is a red flag for any buyer," he said.

"Scammers may advertise machinery at lower prices than the typical market rate. As always, if it looks too good to be true or if you feel pressured in any way, chances are it's a scam," Keogh said.

The ACCC stated that farmers are also being warned against giving too much personal information as scammers are targeting more than just money.

"Legitimate sellers will only ever ask for enough information to deliver what you've ordered, so it is important not to give too much personal information over the phone or online as you may fall victim to identity theft," Keogh said.

Businesses are encouraged to report scams and learn more about how to get help on the Scamwatch website https://www.scamwatch.gov.au/