Legitimate grant information does not require you to purchase a special kit. To protect against scams, it is crucial to understand how the real government grant process works. The contrast between the complex reality and the simple promise of a scam is a powerful diagnostic tool. Scammers contact business owners with news of “winning” a grant they never applied for. They use fake agency names and offer grants with no restrictions, a major red flag, before demanding a fee to release the non-existent funds.
- Even if the message appears to come from someone you know, that person’s account may have been hacked or their profile cloned.
- If you think you may have been a victim of a government grant scam, report it to the U.S.
- Do not respond to, pay, or share any financial information with anyone contacting you via social media, email, or otherwise offering free HHS grants or money.
- GrantWatch is a secure search and listing directory of currently available grants accepting grant applications.We only charge a small subscription fee to use our service.
Consider freezing your credit
Always consult a tax professional regarding the financial implications of any legitimate grant you receive. Grants provide vital funding for nonprofits, businesses, education, and personal growth. Understanding how these scams work can help you avoid falling victim to them. HHS will not message you through social media to begin a grant application. Understanding how to spot the warning signs of a government grant scam or a fake business grant is the first and most critical step in protecting yourself. This breakdown exposes the tactics scammers use, the clear red flags to watch for, and the legitimate steps to take if you’ve been targeted.
“We need consumers to be able to identify fraud and report it without being ashamed,” says Pitt. “People tend to be very embarrassed — they can’t believe they fell for this. “Scammers will insist that you pay through methods such as gift cards and crypto,” says Jennifer Ehresman, head of consumer client protection at Bank of America. Use automatic or electronic payments rather than checks when possible. It’s much easier to freeze and thaw your credit report than it used to be, and it’s free.
Why won’t my Facebook friend give me a short loan?
But the goal is the same, to trick elderly and naive people into handing over personal information and their money. You also qualify for the same government grant and your buddy wants to walk you through the process. You can’t dawdle because the government could run out of funds for additional grants at any time.
Review your credit reports
This blocks lenders from accessing your credit reports in response to an application for a new credit account — thwarting thieves who try to open accounts with your information. Review your credit reports regularly for suspicious activity. Even seemingly innocuous details, such as your email address or phone number, can help scammers build a profile about you over time. Question any unexpected communication you receive from a business or government agency, and don’t give them any of your personal information.
“The Federal Bureau of Grant Awards has awarded you a $8,000 grant.”
A federal grant is an award of financial assistance from a federal agency to a recipient to carry out a public purpose of support or stimulation authorized by a law of the United States. The scheme involves scammers pretending to offer you grants from HHS and asking for payment or personal information to receive the fake grants. These scammers may pretend to be a “friend” or someone from HHS.
If an offer exhibits any of the following characteristics, it is almost certainly a scam. Your nonprofit receives a phone call, email, or letter claiming you’ve been awarded a free U.S. grant from the federal government. You must pay a processing fee before funds are released. When trying to confirm the validity of a grant, it is crucial to look at who is offering the grant.
Abu Dhabi Police continuously warn the public against opening suspicious electronic links, stressing that they may lead to fraud and theft of personal or financial data. Recipients of federal grants have been awarded funds to carry out the goals and objectives identified in the grant. These funds are subject to certain regulations, oversight, and audit. If you believe the text message may be legitimate, contact the company through an official channel and explain the communication you just received. Do not respond to the suspicious text message, click on any of its links, or call the phone number in the text.
Who Offers Legitimate Grants?
But watch out for fraudulent alerts from criminals who are attempting to gather personal information from you. They may say that suspicious activity has appeared on your account, and when you respond, they’ll ask for your account number or Social Security number to validate your identity. For example, a scammer may prompt you to wire money immediately to bail your grandchild out of jail or to click on a password-reset link within 24 hours to avoid losing access to an account. GrantWatch is a secure search and listing directory of currently available grants accepting grant applications.We only charge a small subscription fee to use our service. GrantWatch does not give grants.Never pay an imposter who asks you to pre-pay money for a guaranteed grant or money-back for a grant or check.Copyright © 2025 Grantwatch/GrantNews. Do not trust anyone who asks you to pay them a fee upfront in order to expedite your grant submission.
- Such text-based scams are seeming to become only more common.
- Scammers use direct messages and targeted ads, often with fake profiles or hacked accounts, to promise easy money.
- Fortunately, there are ways to determine the legitimacy of a grant opportunity.
- Use automatic or electronic payments rather than checks when possible.
- Under no circumstances should you provide any form of payment or share personal or financial information.
Why are federal grants awarded?
The tips below can help you sidestep many kinds of fraud — or quickly spot a scam after it has happened so you can mitigate the damage. Fortunately, there are ways to determine the legitimacy of a grant opportunity. Using a well-known listing service or database, such as GrantWatch, is an excellent place to start.
USGrants.org is an established government funding resource portal focused on providing legitimate information, resource, and help on government grants and federal funding. From year 2000 to date, USGrants.org has become one of the grant scam and fraud alerts largest and legitimate go-to resources for information on government grants. The federal government has a page with information on how the government grant programs work and information on scams. You can also search for federal government grants on their site.
