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SCAM: Age-old 'government grant scam' still duping victims

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Posted at 12:19 PM, Mar 28, 2017
and last updated 2017-03-28 15:20:04-04

It's a scam we've warned you about for years, but it is still duping victims.

The government grant scam continues to trick people into spending thousands to "claim their award". Unfortunately, there is no award.  

According to Consumer Affairs, it works like this:

You get a call from someone who says you are being awarded a government grant. It's a lot of money and you can pretty much use it any way you choose. The caller may say he is calling from Washington, DC, and sure enough, your caller ID says that's where it's coming from. However, victims never receive any money and instead pay the scammer hundreds of dollars in alleged fees and taxes, always using a prepaid money card that is untraceable.

The FTC says if you have to pay money for a “free” government grant, it isn’t really free and it isn't really legitimate. A real government agency does not require a processing fee for a grant that you have already been awarded. Plus, if you've never applied for a government grant, you won't receive one.