Common scams involving federal grant money include being told that people need to pay a fee to get the grant, being told the grant is issued due to being a good taxpayer, asking for bank account information to send the money and any kind of grant being awarded without having filed for a grant. These scams sometimes have very official-sounding names and consumers may even be able to call the organization making the offer back when something seems to go wrong in the transfer, as stated by the Federal Trade Commission.
There are several things to keep in mind about grants. Grants are always free; they do not require any kind of payment or deposit in order for the federal government to send a grant recipient money, as stated by Fraud.org. People may state that they are from federal agencies such as the Federal Grants Administration, but this department does not exist.
The government will never reach out to someone about signing up for a grant without a person having filled out the required paperwork to file for a grant. Anyone who calls and says they are calling to offer someone a grant should be an immediate red flag. The government will also never ask over the phone for bank account information.
The government will never call to offer grant information for a fee, either. Most grant information is free, although consumers may pay a fee to get a printout, but these will not be offered over the phone unsolicited.