Better Business Bureau (BBB) | Greater Maryland warns Maryland consumers that grant scams are out in full effect this month. Within the past two weeks, BBB has received numerous inquiries and complaints from consumers who have felt the affects of this scheme.
In reports to BBB, the scam artist claims to represent a federal agency when contacting the individual. Victims are told they have been selected to receive a government grant ranging from $10,000 to $30,000. In order to receive the grant money, the representative explains a "processing fee" ranging between $250 and $500 must be paid. Some individuals have provided bank account information, while others have wired money at the request of the scammers. Unfortunately, according to every report, the advance fee is the only money that ever changes hands.
According to Grants.gov, grants are not benefits or entitlements. 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. Grants are not federal assistance or loans to individuals.
One Maryland family learned the facts about federal grants after being duped not once, but twice by the person(s) behind www.grants.gov.info . The now defunct Web address was strikingly similar to that of the legitimate www.grants.gov site. After qualifying for what they were told were a home improvement grant and a small business grant, the family paid $800 in alleged "attorney fees" associated with the processing the grant applications. Before learning of their misfortune, the family shared the information with their daughter and son-in-law, who then applied for a similar grant. As a whole, the family lost over $1,200.
"Scam artists invent grant categories to appeal to the individual consumer they are targeting," says Angie Barnett, CEO & President of BBB | Greater Maryland, "This allows these predators to scheme from a larger pool of potential victims by choosing a 'grant' that focuses on the individual's needs such as home improvement."
For more information or inquiries on a company, visit www.bbb.org. BBB and Grants.gov offer the following information on federal grants and related scams:
- No government grant-making agency will make phone calls; send email or letters to solicit money or personal banking information from a potential grant recipient.
- There are no processing fees for federal grants.
- Federal grants are not issued for personal use, but are intended for institutions and non-profits to carry out projects with a public purpose.
- Know who you're dealing with on the web. Scam artists will often post a web site with a name similar to a legitimate site. For US federal government sites, the extension should always be .gov; sites without this extension are fraudulent.
- If you have provided personal banking information to anyone claiming to be associated with a federal grant agency, call your bank immediately to prevent unauthorized access to your account.
To obtain federal grant information and applications, visit the following web sites: www.grants.gov, www.usa.gov, www.govbenefits.gov.