Government Grant Scammers offer Free Money

Victims pay out big money for “processing fees”

Better Business Bureau Serving Greater Iowa, Quad Cities and Siouxland Area is alerting residents to the “government grant scam” after receiving numerous calls in recent weeks. In order to collect their grant money people are asked to pay a fee and complete the payment in an odd way.
Con artists have typically asked victims to provide their credit card or banking information.  Recently the scam has new twist. Instead of customer information the scammer asks for payment in gift cards such as an iTunes, Walmart gift card or a Green Dot Debit Card.
“Government agencies will not require customers to make payments on gift cards and money orders. Consumers should be wary of any transaction that requires a non-traditional system of payment.”– Chris Coleman, BBB President
How the Scam Works:
You get a phone call, an email, or spot a post on social media. No matter the medium, the message is similar: the government is awarding “free grants.” Your application is guaranteed to be accepted, and you’ll never have to repay the money. You can use the “grant” to pay bills, make repairs, or pay education costs.
If you reply to the ad or take the bait on the phone, scammers congratulate you on your eligibility.  Then they ask you to pay a one-time “processing fee.” To pay the fee you are asked to send a pre-paid money card, Green Dot card, or even an iTunes card.
Whatever their story, you will never see your “grant” or your money.
BBB offers the following tips to avoid this and similar scams:
• Check with BBB first if you receive a suspicious call, email or text before sending money.
• Never use MoneyGram, Western Union, Green Dot Money Cards, iTunes Cards or any other hard-to-trace wire or cash transfer systems to deliver money to anyone you do not know.
• The government typically doesn’t call, text or email. Government agencies normally communicate through the mail, so be very cautious of any unsolicited calls, text messages or emails. Know who you are dealing with.
• Don’t pay any money for a “free” government grant. If you have to pay money to claim a “free” government grant, it isn’t free.
• Phone numbers can deceive. Con artists use Internet technology to disguise their area code in Caller ID systems. They could be calling from anywhere in the world.
If you have questions about a grant offer, contact BBB at www.bbb.org or call 800-222-1600. To report a scam go to BBB Scamtracker.

Lake Mills Graphic

204 N. Mill Street
Lake Mills, IA 50450

Office Number: (641) 592-4222
Fax Number: (641) 592-6397

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