SCARS Institute’s Encyclopedia of Scams™ Published Continuously for 25 Years
The Federal Government Grant Scam Has Been Around For Years
Offers of free money from government grants are scams. Someone might offer you a grant to pay for education, home repairs, home business expenses, or unpaid bills. But they’re all scams. Here’s how to avoid a government grant scam, and how to report it.
Now, scammers are finding targets through social media.
How It Works:
- You see posts from people on Facebook claiming they have been awarded tens of thousands of dollars in a grant from the federal government, and that you could be eligible, too.
- You call the listed phone number, give some personal information, and are told you qualify—all you have to do is send a money order or provide your bank account information to cover processing fees.
- You never get the grant.
How Government Grant Scammers Try To Trick You
- Scammers reach you in lots of ways. You might see ads online for (fake) government grants. Scammers might call you, but use a fake caller ID so it looks like they’re calling from a federal or state government agency. Some send texts or emails, saying you may qualify for free money from the government.
- Scammers make big promises. They might say you can use this so-called free money or grant to pay for education, home repairs, home business expenses, household bills, or other personal needs.
- Scammers try to look official. Besides faking their phone number, they’ll pretend they’re with a real government agency like the Social Security Administration. Or, they’ll make up an official-sounding name of a government agency, like the Federal Grants Administration, which doesn’t exist.
- Scammers ask you for information or money. Government grant scammers might start by asking for personal information, like your Social Security number, to see if you “qualify” for the grant (you will). Then they’ll ask for your bank account information — maybe to deposit “grant money” into your account or to pay for up-front fees. But sometimes, scammers will ask you to pay those fees with a gift card, cash reload card, money transfer, or with cryptocurrency. And that’s always a scam.
- Scammers try to be convincing. They might even promise a refund if you aren’t satisfied. But that’s a lie. Once you give your bank account information, or
What To Know About Government Grants
- Government grant applications and information about them are free.
- The “Federal Grants Administration” – the agency the scammers say they work for – does not exist.
- If you didn’t apply for a federal government grant, there is no way you would receive one. If you’re offered a grant you know nothing about, it’s probably a scam.• If you didn’t apply for a federal government grant, there is no way you would receive one. If you’re offered a grant you know nothing about, it’s probably a scam.
The government won’t get in touch out of the blue about grants. It won’t call, text, reach out through social media, or email you. It won’t offer you free government grants of any kind, much less grants to pay for home repairs, medical costs, or other personal needs. Real government grants require an application, and they’re always for a very specific purpose. Learn more (for free) at grants.gov.
Never share your financial or personal information with anyone who contacts you. Government agencies will never call, text, message you on social media, or email to ask for your Social Security, bank account, or credit card number. In fact, no matter who they say they are, don’t give out that information. Once a scammer has your information, they can steal money from your account, or your identity.
Don’t pay for a list of government grants — and don’t pay any up-front fees. The only place you can find a list of all available federal grants is at grants.gov. And that list is free. No government agency will ever contact you to demand that you pay to get a grant. And no government agency will ever ask you to pay with a gift card, cash reload card, by money transfer, or with cryptocurrency. Not for a grant, and not ever.
If you paid a scammer, act quickly. If you think you’ve sent money to a government impersonator like one of these grant scammers, contact the company you used to send the money. Tell the gift card, money transfer, or cryptocurrency company that it was a fraudulent transaction. Then ask them to reverse it.
What You Should Do:
- • Never pay money for a “free” government grant.
- • If you think you may be a victim of a government grant scam, report it to the Federal Trade Commission at https://reportfraud.ftc.gov/#/?orgcode=SCARS or 1-877-382-4357.
When it comes to fraud, vigilance is our number one weapon. You have the power to protect yourself and your loved ones from scams.
What To Do If You Paid A Scammer
Scammers often ask you to pay in ways that make it tough to get your money back. No matter how you paid a scammer, the sooner you act, the better. Learn more about how to get your money back.
Please share this alert with friends and family, and always report them!
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Important Information for New Scam Victims
- Please visit www.ScamVictimsSupport.org – a SCARS Website for New Scam Victims & Sextortion Victims
- Enroll in FREE SCARS Scam Survivor’s School now at www.SCARSeducation.org
- Please visit www.ScamPsychology.org – to more fully understand the psychological concepts involved in scams and scam victim recovery
If you are looking for local trauma counselors please visit counseling.AgainstScams.org or join SCARS for our counseling/therapy benefit: membership.AgainstScams.org
If you need to speak with someone now, you can dial 988 or find phone numbers for crisis hotlines all around the world here: www.opencounseling.com/suicide-hotlines
A Note About Labeling!
We often use the term ‘scam victim’ in our articles, but this is a convenience to help those searching for information in search engines like Google. It is just a convenience and has no deeper meaning. If you have come through such an experience, YOU are a Survivor! It was not your fault. You are not alone! Axios!
A Question of Trust
At the SCARS Institute, we invite you to do your own research on the topics we speak about and publish, Our team investigates the subject being discussed, especially when it comes to understanding the scam victims-survivors experience. You can do Google searches but in many cases, you will have to wade through scientific papers and studies. However, remember that biases and perspectives matter and influence the outcome. Regardless, we encourage you to explore these topics as thoroughly as you can for your own awareness.
Statement About Victim Blaming
SCARS Institute articles examine different aspects of the scam victim experience, as well as those who may have been secondary victims. This work focuses on understanding victimization through the science of victimology, including common psychological and behavioral responses. The purpose is to help victims and survivors understand why these crimes occurred, reduce shame and self-blame, strengthen recovery programs and victim opportunities, and lower the risk of future victimization.
At times, these discussions may sound uncomfortable, overwhelming, or may be mistaken for blame. They are not. Scam victims are never blamed. Our goal is to explain the mechanisms of deception and the human responses that scammers exploit, and the processes that occur after the scam ends, so victims can better understand what happened to them and why it felt convincing at the time, and what the path looks like going forward.
Articles that address the psychology, neurology, physiology, and other characteristics of scams and the victim experience recognize that all people share cognitive and emotional traits that can be manipulated under the right conditions. These characteristics are not flaws. They are normal human functions that criminals deliberately exploit. Victims typically have little awareness of these mechanisms while a scam is unfolding and a very limited ability to control them. Awareness often comes only after the harm has occurred.
By explaining these processes, these articles help victims make sense of their experiences, understand common post-scam reactions, and identify ways to protect themselves moving forward. This knowledge supports recovery by replacing confusion and self-blame with clarity, context, and self-compassion.
Additional educational material on these topics is available at ScamPsychology.org – ScamsNOW.com and other SCARS Institute websites.
Psychology Disclaimer:
All articles about psychology and the human brain on this website are for information & education only
The information provided in this article is intended for educational and self-help purposes only and should not be construed as a substitute for professional therapy or counseling.
While any self-help techniques outlined herein may be beneficial for scam victims seeking to recover from their experience and move towards recovery, it is important to consult with a qualified mental health professional before initiating any course of action. Each individual’s experience and needs are unique, and what works for one person may not be suitable for another.
Additionally, any approach may not be appropriate for individuals with certain pre-existing mental health conditions or trauma histories. It is advisable to seek guidance from a licensed therapist or counselor who can provide personalized support, guidance, and treatment tailored to your specific needs.
If you are experiencing significant distress or emotional difficulties related to a scam or other traumatic event, please consult your doctor or mental health provider for appropriate care and support.
Also read our SCARS Institute Statement about Professional Care for Scam Victims – click here to go to our ScamsNOW.com website.
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