Grant Scam Checker: 10 Signs a "Free Government Grant" Is Fake

Grant scams work because they promise exactly what people in a tight spot hope to hear: free money, fast, with no catch. The Federal Trade Commission is blunt about it: offers of free money from government grants to pay for education, home repairs, home business expenses or unpaid bills are scams.

Use the checklist below before you reply to any grant offer, click a link, or share personal information.

The 10-point grant scam checklist

Answer each question. One “yes” is enough to stop.

1. Did they contact you first? By phone, text, email, social media or a friend’s hacked account? The government doesn’t reach out unprompted about grants.
2. Are they asking for a fee? “Processing,” “release,” “tax,” “insurance” or “delivery” fees are scam signals. Applying for real government grants is free.
3. Do they want gift cards, a wire transfer, a cash reload card, a payment app or crypto? That is always a scam, according to the FTC.
4. Do they want your Social Security number or bank login to “check if you qualify”? In grant scams, you always “qualify.” Then the money or your identity is gone.
5. Is the grant for personal bills, debt or “anything you want”? Real government grants are for a specific purpose and require an application.
6. Does the agency name sound official but you can’t find it on a .gov site? The FTC notes scammers invent names like the “Federal Grants Administration,” which does not exist.
7. Is your caller ID showing a government number? Caller ID can be faked. Hang up and look up the agency’s real number yourself.
8. Are they rushing you? “Today only” or “your grant expires in an hour” is pressure, not policy.
9. Are they selling a list of government grants? The full list of federal grants is free at Grants.gov.
10. Did they promise a guaranteed award or a refund “if you’re not satisfied”? Funders decide awards after reviewing applications. No one can guarantee one.

What real grants look like

• You go to them. You find the opportunity on Grants.gov, an agency’s .gov website, a state agency, or a foundation’s own website.
• There is a written application with eligibility rules, a stated purpose and usually a deadline.
• They are rarely for personal expenses. Most federal grants go to organizations, states, schools and researchers. Help for individuals usually comes through benefit programs (such as energy assistance or student aid) that you apply for through official channels. See government grants to pay bills: what’s real.
• Any SSN or bank details go into a secure official application, typically on a .gov site, never to a caller or a DM.

What to do if you think it’s a scam

1. Stop contact. Don’t reply, click links or call back numbers they gave you.
2. Verify independently. Look up the agency or foundation yourself and contact it through its official website.
3. If you paid, contact your bank, card issuer, gift card company or transfer service immediately, say it was fraud, and ask them to reverse the charge.
4. If you shared your SSN, visit IdentityTheft.gov for a recovery plan.
5. Report it at ReportFraud.ftc.gov. The FTC shares reports with law enforcement.

Where AGA fits (and what we will never do)

American Grant Association is a private information service, not a government agency, and we do not award grants. We will never call you offering a grant, charge a fee to “release” funds, or ask for your SSN or bank login. Read what AGA never does, and if anyone claiming to be AGA asks for these, report it to us and to the FTC.

Ready to look for real opportunities? Start with how to find grants you qualify for or run the free eligibility check.

Official sources

• FTC Consumer Advice: Government Grant Scams
• Grants.gov: Grant-Related Scams
• FTC: ReportFraud.ftc.gov
• USA.gov: Scams and fraud