Government grant scams

Sometimes it’s 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’s a phone call supposedly from a “government” agency or some other organization with an official sounding name. In either case, the claim is the same: your application for a grant is guaranteed to be accepted and you’ll never have to pay the money back.

But the Federal Trade Commission (FTC), the nation’s consumer protection agency, says that “money for nothing” grant offers usually are scams, whether you see them in your local paper or a national magazine, or hear about them on the phone.

According to the Ulster County District Attorney’s Division of Consumer Affairs, some scam artists advertise “free grants” in the classifieds, inviting readers to call a toll-free number for more information. Others are more bold: they call you out of the blue. They lie about where they’re calling from, or they claim legitimacy using an official-sounding name like “Federal Grants Administration.” They may ask you some basic questions to determine if you qualify to receive a grant. Calls and come-ons for free money invariably are rip-offs.

Grant scammers follow a script: they congratulate you on your eligibility, then ask for your checking account information so they can “deposit your grant directly into your account,” or cover a one-time “processing fee.” The caller may even reassure you that you can get a refund if you’re not satisfied. In fact, you’ll never see the grant they promised; they will disappear with your money.

Consumer Affairs can be reached at 340-3260.