Cases of identity theft linked to insurance fraud have nearly doubled in two years, prompting a warning to farmers and rural businesses over increasingly sophisticated scams.
NFU Mutual and the Insurance Fraud Bureau are urging countryside communities to be alert to account takeovers, false insurance claims, equipment scams and identity fraud during Rural Crime Action Week.
Rural crime cost an estimated £41.5 million in 2025, according to NFU Mutual’s Rural Crime Report.
Separately, NFU Mutual said its counter-fraud teams carried out more than 6,000 investigations during the year and identified or prevented £43.2 million worth of fraud across all of its products and policies.
The insurer stressed that the £43.2 million figure covers its full range of business and is not a measure of fraud in rural communities alone.
NFU Mutual said farms and countryside businesses can be attractive targets because of their relative isolation and growing reliance on digital systems.
Among the risks highlighted are account takeover and identity theft, where criminals gain access to systems or personal details to borrow money, make purchases or carry out other transactions in someone else’s name.
Synthetic identity fraud is also a growing concern.
This involves combining genuine stolen personal information with fabricated details to create a false identity which can then be used to apply for loans, products or services.
Rural businesses can also be targeted through supply-chain scams, including fake or misrepresented machinery and equipment sales.
In some cases, fraudsters may advertise valuable equipment that does not exist in an attempt to secure payment from the buyer.
NFU Mutual also warned that scammers can exploit farm payment schemes by trying to persuade farmers to hand over financial or payment information.
The insurer said people should independently verify any suspicious request using contact details obtained separately from those supplied by the person making contact.
Artificial intelligence is also emerging as a new challenge for insurers.
NFU Mutual said fraudsters are increasingly able to create false or manipulated evidence to support insurance claims, adding another layer of difficulty to fraud detection.
Charlotte Brown, counter fraud manager at NFU Mutual, said fraud could have lasting effects on individuals and communities.
She said: “Insurance fraud is no less a crime. It trivialises an issue which is plaguing the countryside and causes daily worry to farmers, and left unchecked and uncovered it could also have real consequences for insurance cover and premiums.”
NFU Mutual said it had introduced additional checks to identify suspected fraud both when people make claims and when they attempt to take out insurance.
Ms Brown added: “But we can all do our bit to protect rural communities from the impact of fraud, so I’d urge everyone to report their suspicions.”
False or inflated insurance claims are another area of concern.
These can include exaggerating the value of livestock or machinery, overstating losses following livestock deaths or building damage, or failing to disclose relevant information when arranging cover.
NFU Mutual said these types of claims are less common, but can still distort insurers’ understanding of risk and contribute to the cost of fraudulent payouts.
The Insurance Fraud Bureau is also warning about staged collisions and so-called ‘crash for cash’ schemes.
It said remote areas can be vulnerable because there may be fewer witnesses and less CCTV coverage.
John Davies, intelligence and investigations manager at the Insurance Fraud Bureau, said: “Insurance fraud has a devastating impact on rural communities, leaving victims in emotional distress and financial hardship.”
He added: “Over the past two years, we’ve seen cases of identity theft linked to insurance fraud nearly double, and people living in rural areas are often targeted.”
The IFB and NFU Mutual are using Rural Crime Action Week to encourage farmers, rural businesses and residents to report suspicious activity.
Anyone who believes they have been targeted by fraud can report it through Report Fraud.
Suspected insurance fraud can also be reported anonymously through the Insurance Fraud Bureau’s CheatLine service.
