FEDERAL GRANT SCAMS
Government Grant Money Scams
You don't need to join the Federal Grant Association to receive a Federal grant. Fall for this telemarketing scam and you could
be out as much as $5000
Wouldn't it be exciting to get a call from the government informing you that you've been approved to receive a Federal grant? I
know I could think of a few ways to put that money to good use! If you get a call like this, don't let your excitement overpower your
good judgement. This is a well-known telemarketing scam designed to trick you into paying a fee in order to collect a much larger
sum in the form of a government grant.
How the Grant Scam Works
Out of the blue, you will receive a call from a person claiming to represent a government "grant association" or a federal "grant
association". The caller will offer to help you get a government grant of somewhere in the neighborhood of $5000.00.
account information they can withdraw all of your funds. Giving someone your social security and bank
account numbers could also lead to identity theft.
for government agencies to exist. An agency would also never require you to provide vital financial information
over the phone. Someone claiming they are going to give you money but first they need to charge you a one
time processing fee should raise a lot of red flags. Think before you act.
Common Government Grant Scam Techniques
Many are tricked, in part, because these government loan scams use real sounding names to fool people. Some of the scams
use actual names of well known financial institutions and government agencies. If you go to their website it will probably look very
respectable and sophisticated. Designing a legitimate looking website is part of the scheme. If you're sent to a website for more
information or to fill out forms it makes many people feel more comfortable with the whole deal. The part that fools people is that
the website domains will be just a little bit different than those of the real financial or government websites. Just different enough
to trick you. Real government websites usually, but not always, have domains ending in .gov which is difficult to forge. Bear in
mind that you can make a link say anything you want. Where that link takes you is another story. When the link says government-
loans.gov but once clicked you are taken to government-loans.com you should be on your guard.
Tips for avoiding government grant scams
Remember: Never give out personal information over the phone when you did not initiate the call.
You don't need to join the Federal Grant Association to receive a Federal grant. Fall for this telemarketing scam and you could
be out as much as $5000
Wouldn't it be exciting to get a call from the government informing you that you've been approved to receive a Federal grant? I
know I could think of a few ways to put that money to good use! If you get a call like this, don't let your excitement overpower your
good judgement. This is a well-known telemarketing scam designed to trick you into paying a fee in order to collect a much larger
sum in the form of a government grant.
How the Grant Scam Works
Out of the blue, you will receive a call from a person claiming to represent a government "grant association" or a federal "grant
association". The caller will offer to help you get a government grant of somewhere in the neighborhood of $5000.00.
- You'll be asked to pay a fee for their service
- This fee could be any amount but it's usually small enough in relation to the grant so as not to raise suspicion. The will also
ask for your bank account number and perhaps your mother's maiden name, and any other information that they can use
to bilk you out of your money. Getting personal information out of you over the phone is typical of almost any telemarketing
scam. Think twice before you give any out. If the person on the other end of the phone is a crook, you've got big problems.
- Don't give out your personal information to just anyone over the phone
account information they can withdraw all of your funds. Giving someone your social security and bank
account numbers could also lead to identity theft.
- The Federal Grant scammers may even be specific about what government agency they represent. HUD, the
Department of Housing and Urban Development, is a well-known agency. People who have actually applied for a
government grant from an agency such as HUD may confuse the bogus offer with a real government grant they are
seeking.
- There are no "charges" for real government grants
for government agencies to exist. An agency would also never require you to provide vital financial information
over the phone. Someone claiming they are going to give you money but first they need to charge you a one
time processing fee should raise a lot of red flags. Think before you act.
- Some grant scams involve criminals placing ads in newspapers and on websites offering loans for small
business.
- If you respond to one of these bogus government loan offers you will quickly be approved. What comes next should raise
more than a few eyebrows. In order to collect your loan you are required to wire funds via Western Union to pay for
insurance on the loan. Thousands of dollars may be asked for but the loan could be for much more making it seem
reasonable. The trick here is that it's never reasonable for someone to ask for money to insure a loan. If you wire money to
someone for loan insurance you can kiss it all goodbye. You won't see a dollar of your loan or your loan insurance money
again.
Common Government Grant Scam Techniques
Many are tricked, in part, because these government loan scams use real sounding names to fool people. Some of the scams
use actual names of well known financial institutions and government agencies. If you go to their website it will probably look very
respectable and sophisticated. Designing a legitimate looking website is part of the scheme. If you're sent to a website for more
information or to fill out forms it makes many people feel more comfortable with the whole deal. The part that fools people is that
the website domains will be just a little bit different than those of the real financial or government websites. Just different enough
to trick you. Real government websites usually, but not always, have domains ending in .gov which is difficult to forge. Bear in
mind that you can make a link say anything you want. Where that link takes you is another story. When the link says government-
loans.gov but once clicked you are taken to government-loans.com you should be on your guard.
Tips for avoiding government grant scams
- A real government won't require you to pay an advance fee before you can collect the grant money, because this practice
is illegal.
- Grants don't arrive unannounced on your doorstep. You won't get a grant without applying for it first.
- Don't give out personal information to people making unsolicited calls to you no matter how reasonable they sound. Ask
them for their phone number, who they represent, and the address of their organization so you can contact them yourself.
Before you do, check them out on the internet or with the Better Business Bureau.
- Demand information in writing and have them mail, fax, or email it to you.
- If you'd like to apply for a grant, visit www.grants.gov or ask a librarian at your nearist library for a list of Federal grants.
- Search for government grants on your own. Begin with the Catalog of Federal Domestic Assistance (CFDA).
Remember: Never give out personal information over the phone when you did not initiate the call.
SCAM WATCH
TELEMARKETING SCAMS
Sometimes a telemarketing call is nothing but a phone scam
Most telemarketing calls, although highly annoying, are made by legitimate
telemarketing companies. Unfortunately, there are many large telemarketing
scam rings out there that like to prey on unsuspecting consumers.
In many cases, these telemarketing scams are directed the elderly, who are
seen as easy marks. Beware, however, as scammers aren't choosy. They are
happy to prey on anybody with money available for their scam.
Don't let it be you!
Sometimes a telemarketing call is nothing but a phone scam
Most telemarketing calls, although highly annoying, are made by legitimate
telemarketing companies. Unfortunately, there are many large telemarketing
scam rings out there that like to prey on unsuspecting consumers.
In many cases, these telemarketing scams are directed the elderly, who are
seen as easy marks. Beware, however, as scammers aren't choosy. They are
happy to prey on anybody with money available for their scam.
Don't let it be you!
How to recognize and avoid telemarketing scams:
The scammers will offer many excuses for why this information is not available. If the information is not available, then neither
should be your business.
It is our belief at Fraud Guides, and we think that most everybody will agree, that any investment that would really be 100% risk-
free would not require telemarketers to sell it. There would be more investors than opportunities for such a venture.
Protect yourself against telemarketing scams by taking a few simple precautions:
- High-pressure sales tactics are commonly used by scammers. Even scammers will start out nice to try to "make a sale."
What separates scammers from legitimate telemarketers is that scammers will resort to abusive tactics.
- Legitimate telemarketers will ask for a sale, but when you say "no," they will back off. After all, they want to call you again
sometime with another product. Thieves will, after you tell them no thanks, result to hard selling, insults, and even vague
threats if they aren't successful at their scam.
- Scammers will require you to "act now" or lose the opportunity forever. Yeah right. If somebody really wants your business
they will be happy to extend the same offer in the future. Rare is the business that has all the customers they want.
- People who ask for your credit card number when you have not agreed to a sale yet are most likely big-time scammers.
There are other ways to verify people's identity. Your credit card and social security numbers should be protected like the
gold at Fort Knox. Know exactly whom you are dealing with before ever divulging this vital information.
- If an offer sounds to good to be true, it probably is. This outstanding advice will never become obsolete. Crooks will make
any kind of promise they can to swindle you. Don't fall for it. Greed is not good. Being greedy makes you more susceptible
to fraud.
- Do not, under any circumstances, ever allow somebody to come to your home to pick up money for a telephone purchase.
Not only is this a sure sign of a scam, but it could possible put you in danger.
- Avoid any telemarketer that want to give you something for free but only after you pay an up front fee. Free is free.
Anything else is fraud.
- Any business, telemarketing or otherwise, that cannot provide basic reference information about their business are likely to
be crooks. This basic information includes, but is not limited to; address, phone number, place where they are licensed, or
confirmation that they are registered with a direct marketing regulatory agency, are likely illegitimate.
The scammers will offer many excuses for why this information is not available. If the information is not available, then neither
should be your business.
- Beware of any promises of risk-free investments. In my years of learning about investments, I have never found any that
are risk-free. Okay, maybe government bonds are risk-free, but I have never heard of any government agency having
telemarketers on their staff to sell such bonds.
It is our belief at Fraud Guides, and we think that most everybody will agree, that any investment that would really be 100% risk-
free would not require telemarketers to sell it. There would be more investors than opportunities for such a venture.
Protect yourself against telemarketing scams by taking a few simple precautions:
- The first thing you may want to do is register with the National Do Not Call Registry (https://www.donotcall.gov/default.
aspx). This works like a charm for reducing the number of solicitation calls. It is also worth noting that legitimate
telemarketers are registered with a government regulatory agency and must comply with the registry. There are a few who
do not. You can find more information at the National Do Not Call Registry website.
- Don't allow yourself to be pushed into a hurried decision. Keep in mind that if you want something badly enough, you are
likely to seek it out on your own without the prompting of a phone call.
- Don't be afraid to request that additional information be mailed (never dropped off) to you so that you can do more
research. Any resistance at doing this is a red flag. Really good scammers may even have professional looking information
to send, so make sure that you use due diligence when looking over any materials that you might receive.
- Always seek advice from people you trust before entering into any investments or contracts. The person trying to sell you
a product or investment should have no problem with this if they have confidence in the product they are selling.
- Get any promises or great deals in writing. People can say whatever they want on the phone, but written agreements are
binding. This doesn't automatically indemnify you against fraud, but it certainly doesn't hurt either.
- Resist giving financial information over the phone. As hard as it is to believe, credit cards aren't the only way to pay for
purchases. Personal checks still have a place in the world. Do not give out personal financial information unless you are
convinced (and be a very hard sell) that it is absolutely necessary.
- Finally, if somebody is menacing you over the phone, hang up. You may also tell the telemarketer not to make any more
calls to your number. If they persist, document the times of the calls and contact your state's Attorney General. Attorneys
General offices typically handle complaints regarding consumer fraud.
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