Consumer Encyclopedia
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 In this case, much more money will be withdrawn.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
This 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.
This sample scam appears as a full page advertisement in a local newspaper. Don't fall victim to this lure of easy money.
