SCAM AWARENESSGovernment grant scams
In a government grant scam, someone says you have been chosen for free money from the government. It might be for home repairs, bills, school, or a small business. The catch is that you must pay a processing fee or share your bank account number first. Real federal grants do not work this way.
How this scam works
The offer may come by phone, text, email, or a social media message, sometimes from a hacked account of a friend. The person sounds friendly and congratulates you on being selected because you paid taxes on time or have a clean record. They use official-sounding agency names and may give you a badge number or approval code.
To release the grant, they ask for a fee, often by gift card, wire transfer, or payment app. Some ask for your bank account number so they can "deposit" the money, then use it to take money out instead. After the first payment, new fees appear for taxes, insurance, or delivery. The grant never arrives.
What it can look like
EXAMPLE · NOT A REAL MESSAGE"Congratulations! You have been approved for a $9,000 federal grant for being a good taxpayer. To release your funds today, pay a one-time $250 processing fee with gift cards and send the card numbers to your agent at [number]."
Warning signs
- You are told you won a grant you never applied for.
- You must pay a fee to apply for or receive the money.
- They want payment by gift card, wire transfer, crypto, or payment app.
- They ask for your bank account or Social Security number to deliver funds.
- The offer came through a call, text, or social media message.
- They pressure you to act today before the offer expires.
How to protect yourself
- Remember that you never have to pay to apply for or receive a federal grant.
- Know that federal agencies do not call or message people to award grants they did not apply for.
- Look up real grant programs at Grants.gov or USA.gov, typing the address yourself.
- Be careful with messages from friends on social media about free money. Their account may be hacked.
- Never share bank or Social Security numbers with an unexpected caller or messenger.
- Remember that caller ID and email names can be faked to look official.
If you already responded
- If you paid with a gift card, contact the card company right away and keep the card and receipt.
- If you paid by wire, payment app, or bank transfer, call your bank or the service immediately and ask to reverse it.
- If you shared your bank account number, ask your bank about closing or monitoring the account.
- If you gave your Social Security number, visit IdentityTheft.gov for a recovery plan.
- Report the scam to the FTC and keep all messages and receipts.
Get step-by-step recovery help →
Where to report it
Common questions
Does the government give out free grants to individuals?
Most federal grants go to states, organizations, schools, and agencies, not to individuals for personal expenses. Some programs help people with things like college or housing, but you must apply for them through official channels. You will not be randomly selected for free money by phone or social media.
Do you have to pay a fee to get a government grant?
No. The federal government does not charge you to apply for or receive a grant. Anyone who asks for a processing fee, tax, or delivery charge before releasing grant money is running a scam. Hang up or stop replying, and do not send money in any form.
How can I check if a grant program is real?
Search for the program yourself on Grants.gov or USA.gov, or on the website of the agency named. Do not use links or numbers the caller gives you. Official U.S. government websites end in .gov. If you cannot find the program on an official site, treat the offer as a scam.