Government Grant Scams

The FTC says following a few basic rules can keep you from losing money to these government grant scams:

• Don’t give out your bank account information to anyone you don’t know. Scammers pressure people to divulge their bank account information so that they can steal the money in the account. Always keep your bank account information confidential
• You won't receive a grant without applying for it first. Be very suspicious if you are advised you have been awarded a grant, when you didn't apply
• Government grants aren't guaranteed. Any advert that claims your grant application will be successful [in some cases with a money-back guarantee] are fraudulent as no application can be guaranteed. When dealing with scammers, a money-back guarantee is always worthless
• There are no charges for a real government grant. If you have to pay money to claim a free government grant, it isn’t free. A real government agency won’t ask you to pay a processing fee for a grant that you have already been awarded — or to pay for a list of grant-making institutions. The names of agencies and foundations that award grants are available for free at any public library or on the Internet. The only official access point for all federal grant-making agencies is www.grants.gov
• Government grants require an application process. The grants aren't given over the phone and are never guaranteed. Applications for grants are used to determine if you meet the criteria and are awarded on merit
• Government grants are made for specific purposes. Most government grants are awarded to states, cities, schools, and nonprofit organizations to help provide services or fund research projects. Grants to individuals are typically for things like college expenses or disaster relief
• Beware of services offering government grant information for a fee or requesting your personal information to provide it. Information about government grants and other benefits is free and you don’t have to give personal information to get it
• Imitation grant websites.  Scammers make up official-sounding names such as FederalGrantSolutions.com or PresidentObamaGrants.com. Check the blue pages in your telephone directory to check if they are genuine
• Phone numbers can be faked. Some scammers use Internet technology to disguise their area code in caller ID systems. Although it may look like they’re calling from Washington, DC, they could be calling from anywhere in the world

The FTC works for the consumer to prevent fraudulent, deceptive, and unfair business practices in the marketplace and to provide information to help consumers spot, stop, and avoid them. To file a complaint or to get free information on consumer issues, visit ftc.gov or call toll-free, 1-877-FTC-HELP (1-877-382-4357); TTY: 1-866-653-4261. The FTC enters consumer complaints into the Consumer Sentinel Network, a secure online database and investigative tool used by hundreds of civil and criminal law enforcement agencies in the U.S. and abroad.