US Government Grant Scams

Business Consumer Alliance urges consumers to use caution if you are called or contacted by anyone claiming you have free money coming to you or are eligible for a grant that you have not applied for. It is a scam. A real government agency will not ask you to pay fees to get a grant. Be wary of requests sent over social media, by email, in the mail, or over the phone. The crooks may ask you to make payment by wire transfer via Western Union or MoneyGram, or by pre-paid or reloadable cards such as Green Dot Money Packs, gift cards, debit or credit cards. You should never give your personal information to anyone you have not vetted and always keep your banking information confidential. Some scammers pose as government agencies or may use official sounding or look-alike names to confuse consumers into believing the offer is legitimate. Many even disguise their phone number to look like they are calling from Washington, D.C. or a government agency, so don’t be so quick to trust caller I.D.  Also, another telltale sign of a scam is if the scammer claims to be from a government agency but corresponds through Gmail or Yahoo type email address. Government agencies generally use “.gov” domains.

One way to check the authenticity of a grant offer is to directly contact the agency or entity that is allegedly providing the grant. This can clue you in to the scam right away if the entity is not offering grants. If you run into a scam, report the scheme immediately by filing a complaint with BCA. If you have paid money to a scam, time is of the essence. Contact whomever you made the payment through immediately to see if the transaction can be stopped or if a refund can be obtained. In some cases, acting quickly has helped in recovering money, but since scammers work quickly, getting your money back may not be possible. It is best not to get swindled in the first place by recognizing the warning signs mentioned above. And be sure to share the information with those you know so they can avoid falling victim too.

Some helpful resources to use if you’re looking for federal financial assistance are:

Grants.gov – The official place for information on federal grant-making agencies.

StudentAid.ed.gov – Information on qualifying and applying for grants, loans, and other financial aid for education beyond high school.

GovLoans.gov – Provides lists of federal loans for housing, disaster relief, education, veterans, and other needs.

Benefits.gov – Search for benefits and money to assist in job training, childcare assistance, healthcare and other resources available in your state.