Grants 427

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Government Grant Scams

Because you pay your income taxes on time,


you have been awarded a free $12,500
government grant! To get your grant, simply
give us your checking account information, and
we will direct-deposit the grant into your bank
account.

Sometimes, it is an ad that claims you will qualify to


receive a “free grant” to pay for education costs, home
repairs, home business expenses, or unpaid bills. Other
times, it is a phone call supposedly from a
“government” agency or some other organization with
an official sounding name. In either case, the claim is Following a few basic rules can keep consumers from
the same: your application for a grant is guaranteed to losing money to these “government grant” scams:
be accepted, and you will never have to pay the money
back. • Do not give out your bank account information to
anyone you do not know. Scammers pressure
Always keep your bank account people to divulge their bank account information
information confidential. so that they can steal the money in the account.
Always keep your bank account information
confidential. Do not share information unless you
But, grants offering “money for nothing” are usually
are familiar with the company and know why the
scams, whether you see them in your local paper or a
information is necessary.
national magazine, or hear about them on the phone.
Some scam artists advertise “free grants” in the • Do not pay money for a “free” government grant.
classifieds, inviting readers to call a toll-free number for If you have to pay money, whether by cash, check,
more information. Others are bolder: they call you out credit or debit card, wire transfer or prepaid
of the blue. They lie about where they are calling from, money card to claim a “free” government grant, it
or they claim legitimacy using an official-sounding name is not really free. A real government agency will
like the “Federal Grants Administration.” They may ask not ask you to pay a processing fee for a grant that
you some basic questions to determine if you “qualify” you have already been awarded – or to pay for a
to receive a grant. Calls and come-ons for free money list of grant-making institutions. The names of
invariably are rip offs. agencies and foundations that award grants are
available for free at any public library or on the
Grant scammers generally follow a script: they internet. The only official access point for all
congratulate you on your eligibility, then ask for your federal grant-making agencies is:
checking account information so they can “deposit your
grant directly into your account,” or cover a one-time grants.gov
“processing fee.” The caller may even reassure you that
you can get a refund if you are not satisfied. In fact, you
will never see the grant they promise; they will
disappear with your money.
• Look-alikes are not the real thing. Just because
the caller says he is from the “Federal Grants
Administration” does not mean that he is. There is
no such government agency. Take a moment to
check if the agency is real by doing an online
search.
• Phone numbers can deceive. Some con artists use
technology to disguise their area code in caller ID
systems. Although it may look like they are calling
from Washington, DC, they could be calling from
anywhere in the world.
• Take control of the calls you receive. If you want
to reduce the number of telemarketing calls you
receive, register your home and mobile residential
numbers on the National Do Not Call Registry at no
cost by visiting:
Donotcall.gov
888-382-1222
You must call from the phone number you wish to
register.
If you are thinking about applying for a grant,
remember that the applications are available to you for
free and that anyone who guarantees you a grant is
likely to be interested in their own financial gain, not
yours.

For more information or to file a complaint,


visit our website or contact:
Wisconsin Department of Agriculture,
Trade and Consumer Protection
Bureau of Consumer Protection
2811 Agriculture Drive, PO Box 8911
Madison, WI 53708-8911
Email: [email protected]
Website: datcp.wi.gov
(800) 422-7128 TTY: (608) 224-5058

Grants427 (rev 10/23)

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