Internet Crime Complaint Center IC3 Unsolicited Packages Containing QR Codes Used to Initiate Fraud Schemes

In addition, our linking to these sites are solely for the convenience of the user and do not constitute an endorsement of any products or services. While text-based fraud has been seeing an uptick, it certainly isn’t the only avenue fraudsters are employing and won’t be the last. Stay vigilant in your online and offline life, and remember that if a communication seems fishy, it probably is. Report fraud, waste, abuse, or mismanagement of federal funds involving SBA programs, operations, or personnel to the SBA OIG Hotline. Information collected through the Hotline helps keep the SBA OIG aware of risks and trends that affect the SBA’s programs.

Did They Ask You to Pay a Fee?

Beware of individuals claiming to work for grants-related government bureaus and departments that do not actually exist. The individual may even provide a valid address for a government office, adding a touch of realism to their claim, but do not be fooled. Scammers strive to make their offers seem legitimate, mimicking official communications. Ask yourself the following questions to assess whether a grant offer is genuine or a potential scam. The grant offer is presented as something secret or exclusive. “To the best of my knowledge if it’s a federal grant, it’s part of the public record,” says Chamberlain.

Legitimate grant information does not require you to purchase a special kit. To protect against scams, it is crucial to understand how the real government grant process works. The contrast between the complex reality and the simple promise of a scam is a powerful diagnostic tool. Scammers contact business owners with news of “winning” a grant they never applied for. They use fake agency names and offer grants with no restrictions, a major red flag, before demanding a fee to release the non-existent funds.

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​Your reports help the FTC and our law enforcement partners stop scammers. Using federal grant dollars for unjust enrichment, personal gain, or other than their intended use is a form of theft, subject to criminal and civil prosecution under the laws of the United States. “Whenever there’s a big storm that goes through an area, people will get phone calls or text messages that pretend to be from their insurance or the federal government,” Murray says. Fraud and scams come in all forms, like faked phone calls and swiped credit card information.

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AARP is a nonprofit, nonpartisan organization that empowers people to choose how they live as they age. “I’ve seen proposals as short as 18 pages and as long as several hundred pages,” says Chamberlain. Those applications must explain who the grant will serve, what the expected outcome will be along with detailed budgets. Writing them isn’t easy, and they can take one to two months, or even longer, to prepare, says Chamberlain. You may be told you have money waiting for you but must give your Social Security number to verify. Hang up and check it with your state property agency or search the free missing money database maintained by the National Association of Unclaimed Property Administrators.

Unsolicited Packages Containing QR Codes Used to Initiate Fraud Schemes

You receive a call, email or letter from the federal government stating that you have won a free U.S. grant. Usually these grant “notifications” come via the phone, but people may also receive them through mail and email. These notices usually claim to be from the Federal Grants Administration or some other phony – though official-sounding – agency. Individuals who receive them are told they’re either eligible for or have been awarded a government grant. Stay informed about fraudulent activity related to federal grants.

“This type of federal grant does not require an application.”

But the goal is the same, to trick elderly and naive people into handing grant scam and fraud alerts over personal information and their money. You also qualify for the same government grant and your buddy wants to walk you through the process. You can’t dawdle because the government could run out of funds for additional grants at any time.

Legitimate grant writers or consultants will never guarantee you will win a grant. They charge for their professional services, like research and proposal writing, not for access to funds. Be wary of anyone who claims to have special connections or guarantees results for a fee. Under no circumstances should you provide any form of payment or share personal or financial information. Scammers can be extremely persuasive, but do not give in to the pressure. Block the scammer’s number and email address to prevent further contact.

Scammers may ask you to send gift cards or money to cover processing and/or delivery fees. Do not respond to, pay, or share any financial information with anyone contacting you via social media, email, or otherwise offering free HHS grants or money. Yes, most government grants are considered taxable income by the IRS. Scammers often exploit this by claiming their fraudulent offer is “tax-free,” which is a significant red flag.

• The government does not award grants based on a drawing or raffle; an individual or entity must first apply for the grant through a federal website, like Grants.gov.
• Legitimate federal grants are overwhelmingly awarded to organizations for specific public purposes, not to individuals for personal expenses.
• If someone tells you to pay a small fee for a guaranteed larger grant size (award), this is never a legit grant.
• Official websites use .gov A .gov website belongs to an official government organization in the United States.

Resources for Preventing Grant Scams and Fraud

• Your pal urges you to contact him ASAP before it’s too late.
• You should not send any money to anyone through a cash app or wire or any form of currency to receive a grant.
• This data can be sold or used for identity theft, which can cause more long-term damage than the initial financial loss.

Grants are free and awarded to you or your organization based on merit and eligibility. If someone tells you to pay a small fee for a guaranteed larger grant size (award), this is never a legit grant. Do not confuse this with paying for a grant-listing service like GrantWatch.com, where you pay a membership fee to access the full directory.

Abu Dhabi Police continuously warn the public against opening suspicious electronic links, stressing that they may lead to fraud and theft of personal or financial data. Recipients of federal grants have been awarded funds to carry out the goals and objectives identified in the grant. These funds are subject to certain regulations, oversight, and audit. If you believe the text message may be legitimate, contact the company through an official channel and explain the communication you just received. Do not respond to the suspicious text message, click on any of its links, or call the phone number in the text.

Even if the message appears to come from someone you know, that person’s account may have been hacked or their profile cloned. Victims may receive messages over social media from people who appear to be friends or family members. They claim they’ve received money, for example subsidies check for $5,600, and tell you how you can too. Instagram scammers took advantage of her 17-year-old son who suffers from learning disabilities.

Unfortunately, it doesn’t appear that Facebook is aggressively culling its platform of these predators. So, not only will the victim of the government grants scam lose their money, but their identity will also be stolen. If you’ve been contacted once, your information may be on a “sucker list” that is sold and shared among fraudsters. Scammers know you might be interested in financial assistance, making you a repeat target.