How To Avoid Government Grant Scams That Promise Free Money

Scammers often make up stories to steal personal information or money, and one of the ways they do this is by pretending to offer free government grant money for personal expenses.  Many of these schemes begin with unexpected contact, such as a phone call, email, text message, or social media message, telling you that you qualify for free government funds. These scammers may claim the money can be used for paying bills, education costs, home repairs, or debt, but these offers are not legitimate. They often ask for personal details like your Social Security number or bank account information under the pretense of confirming eligibility, and then request payment for processing fees through cash, gift cards, wire transfers, or cryptocurrency. There are several truths about real government grants that can help you avoid being deceived. True government grants are typically awarded only to organizations that apply for them and are tied to a specific purpose. Government agencies do not contact people by phone, text, email, or social media about grants that were never applied for. Real grants are never awarded for personal needs like household bills or general expenses. They also do not require any type of fee to receive them. Instead, information about legitimate government grants and how to apply can be found at Grants.gov, and programs that help with personal expenses can be explored through the Benefit Finder at USA.gov.

We encourage consumers to learn more about spotting scams at Consumer.gov and reminds everyone to report suspicious activity to ReportFraud.ftc.gov. Staying aware of how real grants work and watching the common signs of scams can protect your personal information and keep your money safe.

Source: How to avoid government grant scams that offer free money for personal expenses | Consumer Advice

Back