The application form there may ask for your Social Security number, which criminals can then use to apply for loans in your name. It might start with a phone call from the “Federal Grants Administration” (which doesn’t exist) informing you that you’re eligible for a lucrative grant the government is providing to help people just like you. I had heard enough and had other work to do, so I let this scammer know he was wasting his time. But then she was back with an explanation as to why she couldn’t lend me any money despite her giant windfall. These scammers had just lifted the photo directly from the website of the Department of Defense.

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In this scheme, you receive a check for more than the supposed grant amount. The scammer instructs you to deposit it and wire back the “overpayment” to cover fees. The original check eventually bounces, leaving you responsible for the entire amount withdrawn, including the money you sent the scammer. A “grant kit” scam involves fraudsters selling you a guide or list of “secret” grant opportunities for a fee. This information is typically outdated, useless, or freely available from official sources like Grants.gov.

• The team at GrantWatch has put together a checklist to follow to help when determining the legitimacy of a grant.
• His victimizers were people who he believed to be friends on the social media platform.
• Just applying for a grant NEVER guarantees you will win the grant.

Step 2: Do not engage with the suspicious text

The risk of illicit activity is exacerbated if CVC kiosk operators fail to meet their obligations under the Bank Secrecy Act (BSA). This is the type of urgent-sounding language that fraudsters may use in text messages to try to trick recipients into clicking on a malicious link. Luring a recipient into clicking on a fraudulent link can give them a hook to then access that person’s financial accounts or other personal information. There are countless number of websites on the Internet that are taking advantage of your need for government funding. Ignore any social media user who sends you an unsolicited message about a government grant, and report it to the social media platform.

• Californians should be aware of fraudulent activity by individuals claiming to represent the Community Services Block Grant (CSBG).
• If you shared sensitive information, you are at high risk for identity theft.
• Victims are told they have been selected to receive a government grant ranging from $5,000 to $25,000.
• Ask yourself the following questions to assess whether a grant offer is genuine or a potential scam.
• The government does not charge a fee for individuals or entities applying for a federal grant.
• The process is complex, detailed, and highly competitive.

GrantStation Staff

Scammers may charge high fees for services that are free, like help with the FAFSA, or ask for a student’s Federal Student Aid (FSA) ID and password to take over their account. While the bait is “free money,” the scammer’s true objective is to steal your money and identity. The scheme typically involves demanding an advance fee for “processing,” “taxes,” or “delivery” of the nonexistent grant.

Scam Alert from the Council on Financial Assistance Reform (COFAR)

In fact, a frazzled mom recently sent me a request for help. After I reported Agent Thomas George’s Facebook page with its fraudulent photos and promises, it was removed. However, there are still many similar pages on Facebook. Sometimes, Agent Thomas George is a different person, and sometimes the name of the agent is different.

Every grant from the federal government involves an application submitted through a government website, such as Grants.gov. Also, you cannot apply for federal grants over the phone or via email. Any individual claiming that a grant does not require an application, or requires only a phone call or an email, is attempting to scam you.

You receive a call, email or letter from the federal government stating that you have won a free U.S. grant. Usually these grant “notifications” come via the phone, but people may also receive them through mail and email. These notices usually claim to be from the Federal Grants Administration or some other phony – though official-sounding – agency. Individuals who receive them are told they’re either eligible for or have been awarded a government grant. Stay informed about fraudulent activity related to federal grants.

Even if the message appears to come from someone you know, that person’s account may have been hacked or their profile cloned. Victims may receive messages over social media from people who appear to be friends or family members. They claim they’ve received money, for example subsidies check for $5,600, and tell you how you can too. Instagram scammers took advantage of her 17-year-old son who suffers from learning disabilities.

Such text-based scams are seeming to become only more common. In many cases, fraudsters are targeting the customers of financial institutions by impersonating a bank, credit union, or other financial institution. Federal agencies post real grant opportunities at grants.gov. While most are project-specific, your organization may qualify if your work aligns with a federal agency’s mission.

Question messages that convey urgency

Beware of individuals claiming to work for grants-related government bureaus and departments that do not actually exist. The individual may even provide a valid address for a government office, adding a touch of realism to their claim, but do not grant scam and fraud alerts be fooled. Scammers strive to make their offers seem legitimate, mimicking official communications. Ask yourself the following questions to assess whether a grant offer is genuine or a potential scam. The grant offer is presented as something secret or exclusive. “To the best of my knowledge if it’s a federal grant, it’s part of the public record,” says Chamberlain.

Applications are submitted through official government portals ending with .gov. After a thorough vetting process, which can take one to two months, organizations learn if they’ve got the grant through that same government portal, Chamberlain says. At the state/county level, there are many financial assistance programs that foster company and job creation in their respective geographic areas.

Unfortunately, this is a scam playing out in Facebook Messenger every single day taking advantage of the elderly and naive. While anyone can be a target, fraudsters often tailor their pitches to exploit the unique circumstances of specific demographic groups. The information herein is general and educational in nature and should not be considered legal or tax advice. Tax laws and regulations are complex and subject to change, which can materially impact investment results. Fidelity cannot guarantee that the information herein is accurate, complete, or timely.