Lehi, Utah, resident Thomas McLaren said that caller Kevin Parker sounded so convincing about the awarding of a federal grant that he almost fell for it.
“He said I’d been selected for a federal grant for like $7,000,” says McLaren. “He had me up to the point where he said I had to pay.”
The words, “Private Number,” appeared on McLaren’s phone, and when he answered, he was told he needed an account number before he could proceed and was given a second number to call. After making the second call, he was told he would receive the grant, but first he needed to secure the grant by sending $201 in the form of a Walmart MoneyGram.
“I did call the second number, and was told it was a grant, but I’d never applied for a grant,” he says. “I told them I didn’t have any money and hung up.”
The Better Business Bureau has answered a number of inquiries just this week from people who were approached by either phone or email with claims that a federal grant program had money for them.
“Obtaining grants and loans of any kind from any source, government or otherwise is usually an intensive process that requires considerable research and preparation writing and submitting forms or justification for the loan or grant,” said BBB CEO Jane Driggs.
Since March, BBB Scam Tracker has had more than 30 reports of this type of fraudulent grant awards.
Offers for “free” grants to cover such expenses as tuition, home repairs, business expenses, and more proliferate in print media, online, and even in phone calls. They all have one thing in common: You’re told that your application for a grant is guaranteed and that you’ll never have to pay the money back.
Federal grants are not issued for personal use but instead to help institutions and nonprofit organizations carry out projects with a public purpose. However, foundations, institutions, and organizations do award an array of grants.
If you’re looking for a grant, the BBB and the Federal Trade Commission offer these tips.
Don’t pay money for a “free” government grant
A real government agency won’t ask you to pay a processing fee for a grant that you have already been awarded or to pay for a list of grant-making institutions. The names of agencies and foundations that award grants are available for free at any public library and on the Internet. The only official access point for all federal grant-making agencies is grants.gov.
Lookalikes aren’t the real thing
Take a moment to research the name of the agency or organization offering the grant to learn if it actually exists or if it is fake. The Federal Grants Administration, for example, does not exist, yet that’s the name sometimes used when con artists contact consumers regarding fraudulent grants.
Phone numbers can be deceptive
Some con artists use Internet technology called “spoofing” to disguise their area codes in caller ID systems. Although it may look like they’re calling from Washington D.C., they could be calling from anywhere in the world. Reduce the number of telemarketing calls you receive, by contacting the National Do Not Call Registry. To register, visit donotcall.gov or call (888) 382-1222 (TTY (866) 290-4236) from the phone number you wish to register.
