Consumer Encyclopedia

Government grant scam

Government grant scam

Consumers are frequently contacted by a con artist telling them they've qualified for a government grant. Sometimes the caller asks for a processing fee to be mailed. Other times, the caller asks for a checking account number to withdraw the fee. In this case, much more money will be withdrawn. In either case, there is no grant.

Tip #1: Be suspicious of any claim that you've won a government grant for which you've not applied.

Tip #2: Never give out your personal information to anyone who contacts you. Give that out only when you initiate the contact. For more, see identity theft.

Tip #3: To find legitimate grants offered by the federal government, visit www.grants.gov.

Sample government grant scams

To view a sample government grant scam, click here. The sample letter's author claims to be Gateway Grants and assures the recipient that this "too good to be true" offer is not a scam. However, it is a scam.

To view another sample government grant scam, click here. The sample scam appears as a full page advertisement in a local newspaper. Don't fall victim to this lure of easy money.

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