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.

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

Never give your bank account number to someone that calls you out of the blue. Once someone has your 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

The government will never charge you a fee to process a grant, or any other application. Your tax dollars pay 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 but once clicked you are taken to 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 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.

To report a telemarketing scam, contact your local Attorney General’s office and/or file a complaint with the Federal Trade Commission at: You can also report fraud to the National Fraud Information Center at 800-876-7060.

Related Federal Grant Scam Links:

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john carter
9 years ago

to make this brief a friend of mind received $200.000 through UPS from a federal agent who said my name was on a winners list for a on going Easter goverment grant program…my friend is a will known preacher and he said he seen my name on the list as well when the UPS delivered has MONEY!! To his door. he also said he took the check to the bank and they comfirmed that the check was REAL…and he swear that this is real so what am I suppose to do. The processing fee for case file and shipping is $1000…but my friend swear to me that this is real PLEASE HELP!!!

Joe Doakes
8 years ago
Reply to  john carter

The government does not call people to give money away. Never happens. The only way it would be real is if the Internal Revenue Service would send out a Stimulus Check, from the U.S. Treasury Dept to certain liw income taxpayers. Right now, Uncle Sam is in debt for over 17 Trillion dollars and counting. Sorry you all are being conned. The bastard callers should be thrown into a grain silo.

8 years ago
Reply to  john carter

One of my friends just contacted me that she had received the same thing and that my name was on the winners list. She’s already cashed the check and spent some of it. Should I warn her before it gets too far???

g price
9 years ago

someone just called me and said they have $7,000 in grant money for me because I pay all my bills on time and haven’t filed bankruptcy. They said they were from the IRS. They also said it only happens once in someone’s life. They wanted to send me cash thru MoneyGram, but MoneyGram charges a $260 fee. They had all my info…address, name, etc. Is this for real?

8 years ago
Reply to  g price

Same thing happen to me right now…

8 years ago
Reply to  g price

Exact same thing happened to me today. Same wording, “once in a life time”, funny how convincing they can be. Mine was for $9000. They wanted my bank info & I said “no””. They have me a# to call for the Accountant Officer who would take my information & set up my $$ transfer. I haven’t called as I figured it was a scam. The number I to call is 1-206-XXX-XXXX & I was to give my acct # which they have me at the first call. The first call came from, 1-1-120-XXX-XXXX.

Waynette Smelley
8 years ago
Reply to  g price

Same thing just hapoem to me except they actually said they were from the government. Daid for mebto go to walmart and purchase an itune gift card. Security deposit of 250.dollars. I googled about scams like that and says pretty much about what they say once thet get you on the phone. I almost fell for it to.

7 years ago

Waynette. Just received the call. Gave the same details about itune card for registration “refundable fee” Apparently they’ve been successful in the scam industry for some time.

5 years ago
Reply to  g price

I got a text from a friend saying for me to check out GGF (Global Government Futures) after calling phone # I was to send them a text, then they said I was on list to receive over $100,000 fill out form and sent them $300.00 for paper work and delivery fees. They wanted me to go to CVS or Walgreens and get a amazon gift card, when they received, the funds would be released. Sounded to good to be true!

9 years ago

IT IS A SCAM. Wake up. You never have to pay money to get money ever ,ever ,ever.Just received the same phone call.I got as much information as possible , names, phone numbers, addresses and called the Federal Trade Commission, who filed a complaint. These people are scum.

takila ducksworth
9 years ago

I just go a call yesterday around 3:30 from 202# and they told me that I was awarded a grant for $7000 they didn’t ask me for none of my personal info just my name and address and how I want my money received to me no check account no card number he told me this is not scam theirs lot of scam on the market and told me to call them back on monday because the bank was closed so is that SCAM OR NOT

Lucian Webb
8 years ago

What can we do to stop there con artist from calling people to rip them off.Their has to be something we can do.mostly all these people have foreign access and speak very fast which is very ironic see that they claim to represent our government. We have to stop these thieves from fleecing the American people.

8 years ago

Hi . I have a phone call , the guy said the government giving away some grant money , and i will receive 7000 $ if i pay the fee for 210$ should i pay and receive that money? Or its just a scam , he have my account number? But i didnt give him ID or SS# . Have some one really receive the money from them in forreal?

8 years ago
Reply to  mike

Same here.I didn’t do it.

8 years ago

Hey if it sounds to good to be true it probably is not true!

8 years ago

I just received a similar call today from a would be nice lady with an Indian accent informing me of a $10,000.00 gov. grant under my name waiting for me to claim it from the federal reserve bank. Activating fee was $250.00 one time in a lifetime refundable money. The lady hesitated to tell me her full name. She later referred me to a so called Accounting manager for further instructions. Sounding too good to be true, I ran to my banker for a second opinion. Guess what ? They told me all of the above. If I were too carried away and acted secretly, I would find myself by myself tonight feeling sorry for myself. It was a scam. I would be jacked up.

8 years ago

I recently received a message thru messenger on FB from a friend who knows all about my parent dying And I was a only child who got nothing she’s been talking to me about frderal Grant thru World Bank I’ve sent money 2 times and still no Grant I’ve got my receipts . Can you tell me about this thanks .

8 years ago
Reply to  KINBERY

Omg. I got the same thing. Wit world bank from facebook. They I said I was one of the lucky winners. And I would 50000 And I jus had to pay FedEx.250. Than the FedEx agent said all I had to do was pay 100. A friend told I was on the list. And I haven’t talk to this girl in forever. And she hit me up out of no where. Sayin this. It was FCFDA ORGANISATION.. is this a scam

8 years ago

I got the same approach this evening from a FB friend said she got a $ 150,000 grant from a person and then she sent me a friend request and we messaged back and forth she told me that I qualified for a retirement grant. That if a send a processing fee I would get my grant in 48 hours and it would be delivered in 48 hours and was thru World Bank as well. I have not sent anything because I got curious to why I needed to pay a processing fee for a free grant. I’m thinking about reporting this.

8 years ago
Reply to  Donald

Tonight, I received a friend request from someone that I meet at a previous job. I excepted her request, she ask me how I was doing, I responded and she said that she got some good news and was really happy. I ask her to share cause everybody wanted to here good news. She begin to tell me how she received a check in the amount of $150,000.00 from IRA federal grant. Then she said I should inquire about mine. I told her we need to talk, she said that her phone wasn’t active. That should have been a red flag but I never thought she would contact me with this scam. She sent me the number and I sent him a text, he responded right away, I sent my name and address, Deep down I knew this was to Good to be true. After we text back and forth he told me not to tell anybody bout the money. I agreed until he ask me to send $1550.00. I text my “friend” to ask if she sent money ,she said yes and I should hurry up and send the money. I told her I didn’t have it, also ask her to loan it to me til I get my check. She told me that she could only loan me $500.00 I should try to come up with the rest. I told her I’m going to pass, the conversation was over. Please don’t send money to anybody that say they will send you money !!!!! I’m still shock that she contacted me about a scam OMG!!!!

7 years ago
Reply to  Denise

Denise, this happened to me last night. I got a message from a “friend” telling exactly what your friend told you. I had the same conversation and I did send the processing fee of $500. I had a funny feeling that this was not right. Free means free!! I have been sitting home waiting for the UPS driver with my check but all of a sudden I get a text from this lady telling me of some bad news. The IRS stopped the driver because they found out about the money being delivered to me and I need to pay IRS taxes of $1500 and then I will get my money. I have told the lady I want my money back and I will not be paying any more money. I will be reporting her to the trade commission.

8 years ago

I got the same, a friend on facebook who I really don’t know said mij name was o n a list with winners. He gave me her fb account and she send me a messaage that I was a winner and I have te pay 550 to get 28.500. Scam?????????????

8 years ago
Reply to  jose

Same thing happen to me. I fell for it because it was from an old friend in my home town. After you pay one fee, there’s another one and another one. Then once you have paid these fees. You are blocked and can not reach anyone. Don’t do it. Learn from my valuable information and lesson.

Meri Aumick
7 years ago
Reply to  Karen

Wow i just had the same kind of situation except i havent sent no money yet. Mine was all texting no calls and i was texting California. Well then i was told to moneygram 400 to get 40.000 for a firist time home buyer but. The money was to go to texas its sounds good to good and if i do ill have the moey in hand in cash within 24 hours iwas then told not to give the number to anyone because of security reasons and then got a text that i was warned if i do the grant will not go through im confused and wish it was for real and cant get answers from no one so i need to know how to find out if im being scamed

8 years ago

Who do talk to about this ?? My bank ???? I gave them some info about my visa debit card and i am scareddd of what is going to happen next 🙁 someone please help me

8 years ago

I received a call yesterday and was asked my full name and age along with my phone number.after the initial call I was to call back this number 559XXXXXXXXX to give them the Id number that was tied to the file for the “Grant”. Then they said that there is a security fee of 210 dollars. She ,being called Nicole Jones said that I was NOT to send it anywhere or in any form that is was strictly for verification purposes. But then they would send the 7500 via western union. Scam? I think so probably but not sure cause I was not asked to pay anything and they already had all my info.any Opinions?

8 years ago
Reply to  emma

Don’t do it, it’s a scam. Do yourself a favor do research. You will never have to pay for free money.

8 years ago

I just received a call on my cell phone from someone who apparently was from India stating I was the winner of the Gorman Grant for thousands of dollars and doesn’t have to be paid back. Now I applied for no grants and no that the government doesn’t give money to us for paying our bills on time. So I put him on hold and he hung up … my question is how did he get my cell # and address . I always believe you can’t get something for nothing ….. wth

Rose Jones
8 years ago

I was rewarded $9,000.00 free grant I want to know how to stop these people from calling they called twice a week when I told the woman to stop calling she said no we will keep calling you.

8 years ago
Reply to  Rose Jones

block them that’s what I did

8 years ago
Reply to  Rose Jones

Did you have to pay

7 years ago
Reply to  Rose Jones

I just got a call from random that random name is rose it’s saying that free grand money from government and I was so shock and surprise . (How she know my phone number , address and even my name too. To registration is 350 dollar that I have to pay to them later they’re going to pay me a 9,000.00 it’s that joke or what . When I read your guys comments that make me a release that was fake and not truth .thanks to let me know the truth . How to block ?

8 years ago

I received a call saying I was awarded a grant in the amount of$8500. They asked my name & told me to purchase an ITunes variable gift card in the amount of $260. They gave me a an ID # & told me to call a specific #. I was instructed to go to Walgreens or CVS to make the purchase & to not give out any info of what was told to me. Like a fool I did that, & was the told I needed to purchase another gilt card in the amount of $399!!! for insurance puposes! The guy said he was SORRY! he should have told me this already. I now know it is a scam & I’m out two sixty!! I’m on SS. I FEEL LIKE A DAMN FOOL! BTW ~ once I bought the card I was to give him the scratch off # on the back of the card ~ that is how he got the $ BEWARE!!!!!! They claimed to be from the Treasury Dept!!

7 years ago
Reply to  Suzanne

Same thing happened to me to the same way they need to be stopped I’m on ss to so madddddd

8 years ago

I was JUST contacted by someonre saying she works for the government and would help me secure a government grant but at the end of it all she says I am to pay Fed Ex man $500. For taxes/fees to get the $90k check…The only personal info she asked for was address and i.d. You all think this is a scam too?

8 years ago

It is really odd, I play games with these scammers…I called the Secret Service and they are fully aware, but say all of these calls are generated by computers with hacked up addresses, are not coming from the US, so they are ignoring this! I think they should at least make the public aware! Because not all people are swift enough when being conned! I ask em if they are calling from a tent? I even called them back and gave them a sales pitch on a 20 day new laundry soap …all they had to do was give me their credit card, and it would arrive every month, unless they canceled it…that guy was taken back! Done even funnier ones! But what is really odd, they usually call 5-6 times per day, but non today? The Paris bombing took place today! Now do ya have an idea of who is doing this? Pretty obvious!!! Nothing is free…j

7 years ago

I got the same thing. The only difference I see is I have an attorney contacting me wanting me to decide how much I want bc the more money the grant is the more money the processing fee is going to be! I have a cell number for him and the friend from Facebook. I am to the PT I’m turning them in!

7 years ago

This week a friend of mine sent me a friend request I said to myself that’s weird she is my friend already so I accepted her request then she ask me how are you doing I asked the same she responded I am so happy.why? yesterday ups delivered money for me and she commented I saw your name on the ups list .I said to myself that’s impossible but curiosity I asked her tell me what to do.S he texted me the agent number.Immediately I sent message he responded right away he said I want then he told me need to pay $850:00 ups fees .I felt that’s didn’t make sense.asked my friend she said she also paid too.but I don’t have the money she didn’t offer to help well I told the agent he was like rushing gave me all the information and not to tell friend doesn’t respond to my messages.the agent is expecting the money on Friday.tell me what to do.

Lila Nelson
7 years ago

Someone called and saying I am receiving a grant up to 7000 dollars. Wanted my check roughting# or credit card visa #. Thank God I was suspicious and did not give it! How can we get rid of these scammers?

Debrah McAdam
7 years ago

I was informed by a friend that she received an Obama government grant for fifty thousand dollars, and that she saw my name on a winners list.I was contacted from someone supposedly an agent from united nations.had me go through a whole screening process,and sent lots of cash, up to this day,I never received anything ,the fed ex driver Raymond, supposedly found to never deliver packages.

7 years ago
Reply to  Debrah McAdam

Please people, use your common sense! Don’t give out your bank info or get a money gram or gift cards! They are all scammers. The government will NEVER hand out money for no reason or for a fee.

Shauna Taylor
7 years ago

I received several of these calls. I told them I wasn’t interested. They call back over and over. Well I exchanged words with man who had Indian accent, he called me every name in book. Calls continued well my new smartphone got infected w nasty virus as soon as phone gets reset to factory setting phone calls start again. This last time it seems like it harmed operating system. This is a bunch of crap. I will never own another Samsung again. With all technology we should be able to stop this.

Roderick W Hollins
6 years ago

I have someone trying to send me $100,000 but the case File fee is 500 in the delivery fee is 500 and I was told that the money was going to be sent from Texas and the delivery person will have to fly out here and deliver it to me in Illinois and I haven’t paid the 500 yet but I am iffy on doing this should I go through with it because the person who is helping me help me pay half of it and I need to pay the other half should I go through with it?

Kathy Kiely
5 years ago

My friend recommended it. She did it and got $50,000. It was all done through texting. I’m not so sure. Everything was going good until I was informed that there would be a fee. I had an uneasy feeling from the moment she said I qualify. Don’t know how she checked out mu info so quickly.

lajoy howard
3 years ago

How do you know if you got a grant that you filled out for