Facts About Government Grant Scams
Scammers taking advantage of gullible consumers during an economic downtown spurred the Federal Trade Commission to form a task force to conduct a law enforcement sweep that commenced in July 2009. The FTC has taken action against several consumer fraudsters, including those who perpetrate government grant scams.
Other People Are Reading
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About Government Grant Scams
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Government grant scams hook people in through various means, be it through classified ads in a local paper or national publication, on the Internet, or through direct cold-calls. "Free money" government grants are inevitably scams, notes the FTC.
Calling Tricks
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Government grant scammers may use technology to make it appear as through they're calling from Washington, D.C. when the area code registers on a caller ID box, notes the FTC. This tricks consumers into believing the hucksters are calling from a federal agency.
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Other Deceptive Maneuvers
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Other tactics government grant scams employ are appropriating company and website names that sound official, such as the "Federal Grants Administration." The FTC advises those who are unsure of a company's veracity to double-check the name against those in the telephone directory blue pages.
How They Work
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The operators of government grant scams are out to get consumers' money--not to provide them with access to free government grants. For example, in July 2009, the FTC filed a complaint against Grants For You Now. Consumers paid a "one time" $1.99 grant information fee only to have their credit and debit cards charged $94.89 per month for a "membership program."
Report Government Grant Scams
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There's only one online portal that gives access to government grants (see Resources). A governmental agency will never ask for a fee to process a grant application or give out information. Fraudulent government grant offers can be reported to the FTC by filing an online complaint or calling (877) 382-4357.
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