I received a call on Friday from a lady in Seattle, Washington with a troubling matter.
Rachel (not her real name) applied online for a “free $50,000 government grant.” Within minutes of submitting her form, she was contacted by a man who said she qualified for a $7,000 grant. To claim the money, all she had to do was send his company a $200 processing fee—payable via Western Union or a bank wire transfer. Immediately after providing her bank routing and account numbers, Rachel began having regrets. That’s when she reached out to us to ask if the offer was legitimate or if she was being defrauded.
This is clearly a scam. I gave her two pieces of advice:
- Contact her bank to see if any money had been withdrawn and to have her account number changed; and
- Contact local authorities and the Federal Bureau of Investigation (FBI) to explain what happened.
Governments do not solicit applications for “free money” online; they do not provide grants for expenses like starting a business, remodeling kitchens, taking vacations, etc.; and they definitely do not work through third-party intermediaries that charge a “processing fee.”
Use your instincts. If it sounds too good to be true…
Never complete forms online believing you can receive a grant from the government for personal expenses; they don’t exist. When you see these offers, ignore them.
If you’re contacted by someone claiming you’re eligible for a government grant, don’t provide any personal or financial information and don’t offer to send money. Get as many details as you can about their company, their offer, contact names, phone numbers, etc. These swindlers deactivate their phones soon after contacting their targets. You’ll have only one shot to pump them for information.
Call your local authorities and the nearest FBI office. If you were approached, chances are other people in your area were approached with the same scam. Local law enforcement and/or the FBI may already be investigating the situation. Any details you provide might help authorities locate the scam artists and build a case against them. The more information investigators have the better they can do their job.
Stay vigilant. Don’t be a victim.
Dave Farley/Washington, DC/06.22.2015