Google “Obama Stimulus” on the Internet and you’ll get more than 37 million results in a two seconds. Many are schemes to get your money – not give you money.
"Free Government Grants" is one such scheme that BBBs are hearing about big time from consumers. These so-called grants state they help consumers get free government grants for housing purchases or repairs, business purposes, education or medical bills.
These schemes work like this: You respond to an enticing offer for a free CD or booklet that tells you how to write grant requests. In order to get the “free” information, you must give your credit card number or checking account number to pay for shipping. Look closely as you are most likely also agreeing to an online help membership or training program that you can cancel within seven days. The part that is not disclosed is that the membership begins the moment you place your order and that it is next to impossible to cancel because e-mails and phone calls go unanswered.
Now this company has your personal financial information. If you have fallen for a scheme like this, it’s time to contact your credit card company or bank and order free copies of your credit report.
Grant scammers who telephone generally congratulate you on your eligibility for a grant and ask for your checking account information so they can deposit the grant directly into your account. They mention a one-time processing fee ranging from $20 to more than $100 will be deducted as well. The caller may even reassure you that you can get a refund if you’re not satisfied. The truth is you’ll never see the promised grant funds, but they will certainly deduct money from your account.
To avoid losing money to scammers, your BBB advises:
- Only do business with companies you trust. Request a BBB Reliability Report at www.wynco.bbb.org.
- Always keep your bank account information confidential. Don’t share it unless you are familiar with the company and know why the information is necessary.
- Don’t pay any money for a “free” government grant. The only official online source for all federal grant-making agencies is www.grants.gov. 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.
- Some con artists use Internet technology to disguise their area codes in caller ID systems. Although it may look like they’re calling from Washington DC, they could be calling from anywhere in the world. Do not trust anyone you don’t know.
Start With Trust. For more information about consumer and business scams, visit
www.bbb.org or call 970-484-1348 or 1-800-564-0371.