The Better Business Bureau of Greater Maryland has received numerous inquiries and complaints from consumers who were contacted by purported representatives from federal agencies who offered them thousands of dollars in government grants. Victims were told that they had been selected to receive grants of $10,000 to $30,000. But in order to receive the money, victims had to first pay the rep a "processing fee" ranging from $250 to $500. The BBB said some individuals provided bank account information, while others wired money at the request of scammers. Regrettably, the BBB said that the advance fee was the only money that ever changed hands in every complaint that was filed. According to Grants.gov, grants are not federal assistance or loans to individuals. A federal grant is an award of financial assistance from a federal agency "to carry out a public purpose of support or stimulation authorized by a law of the United States." The BBB and Grants.gov offer the following tips:
No government grant-making agency will make phone calls; send e-mail 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. They're intended for institutions and nonprofits to carry out projects with a public purpose.
Know your partners on the Web. Scam artists will often post a Web site with a name similar to a legitimate site. For federal government sites, the extension should always be .gov.
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.
Visit the following Web sites for more federal grant information and applications: www.grants.gov, www.usa.gov, www.govbenefits.gov.