Warning: Government Cash Grant Scams!

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So is it really true? Is President Obama just giving away money to any one that applies for a government grant? Can you really receive thousands of dollars to use as you please just by sending in $1.99 processing fee for a grant kit or database?

If you believe this is true, then I am little green leprechaun that eats lucky charms and has a pot of gold stashed at the end of a rainbow. (Sorry I couldn't help it. St Patrick's day just passed. )


Unfortunately, here we go again. Scammers are up to their same old nonsense. But now they're taking advantage of the economic situation and trying to piggy back off the government's recent efforts to stimulate the economy. You've probably seen tons of ads online promoting the so called free money the government is giving out in the way of cash grants or government grants.  Some of these scammers even have infomercials that look very news-like where they're "reporting" about the recent changes in the laws and how folks will be able to literally bank on this.

Well it's time to wake up and smell the reality check.

How Free Money Grant Scams Work!

– You visit some "free" grant websites where they convince you that the government is giving away money just for living. Then you decide pay $1.99 or some nominal shipping fee via credit card for a "grant kit", "grant database", "grant booklet", fill in the blank. It's all the same crap.

– You allegedly get to use the grant kit for the next 7 days. But here's the problem. Most of the time the kit or access code you were suppose to receive is late or never delivered.

– Because of the delay on the company's end, you would assume that they would adjust accordingly and give you more time on your trial period. But that's not the case. Your credit card is immediately charged a significantly higher fee that can range anywhere from $49.50 or more per month.

– Canceling is nearly impossible. You're given the run around and the blame is pinned on you for not canceling earlier.  Refunds aren't usually honored unless you start threatening to expose their company to the media or the BBB and even then these guys may not refund the charges.

By the way, you could have also been introduced to grants via an email telling you that you qualify for a free grant. This is usually phishing scams sent by identity thieves who hope to steal your personal information.

If you haven't figured it out by now, let me ruin the ending for you.  This is yet another scam we've covered such as rebate processing, package forwarding, typing, data entry, check cashing, etc.

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Bottom Line

The Feds do give out billions of dollars in grant money every year. But most of these grants are to help students pay for college or are for clearly defined reasons, such as research or charitable work. You just have to use your common sense on this one folks. Essentially the government is about taking your money, not just giving it away. Now don't get me wrong, they will make an exception if you're an irresponsible corporate conglomerate that is shady & can't manage it finances properly. (Oh snap, no he didn't!) Yeah, I said it and you know you were thinking the same thing. LOL

How To Find Grants For Free

At the end of the day, no one has to pay to get a list of government grants or to apply for one. More importantly, no company can “guarantee” you’ll receive grant money. If they do then you already know they're lying and can't be trusted. You can find all the information you need at free government web sites, such as: www.grants.gov, www.studentaid.ed.gov, www.govbenefits.gov and www.sba.gov. So there you have it. Another real scam exposed.

Have any of you fallen for this scam or been tempted to give it try because times have been so tough?

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Cindi Bethel-Carmona - July 29, 2013 Reply

I just got a call from someone that could barely speak English. I humored him when he offered me $10,000 to pay my bills. What a deal. I didn’t have to do ANYTHING. The government just wants to send 1,500 people free money! Then he asked how did I want the money….give him my bank account and they’ll deposit the money within 45 minutes….how cool it that 🙂 I said uhhhh NO. Then he said I could call his supervisor to send me a Western Union cash. Wasn’t quite such how this part works…how do they get that money if you don’t give them a credit card???? Just how stupid do they think we are? LOL

    Eddy Salomon - July 31, 2013 Reply

    Unfortunately when people are desperate they suspend a lot of the common sense they usually have. Scams like this continue to live on because people do fall for them.

Astrid - May 22, 2009 Reply

I feel stupid, I went to Grant Connect and signed up for their free trial period. Come on Tom Bosely’s picture was on the site. Good ole Happy Days Dad could not be a scam site right? Well, yes and no. I did get my access code email to me right away, I went to the site and started my search. Surprise! all outdated crap from 5 and 6 years ago. I got on the phone to cancel the trial period it took no joke over an hour on hold for someone to answer. I was given a cancellation code and no further charges. Now here is the real Scam.

These guys signed me up with god knows how many services from some company called INF*On ems,INF*ON lock,INF*ON Med and legalNet something all charging my credit from $19.95 bi-monthly to $12.95. It has been the hardest thing to get off my card; needless to say I had to have the bank cancel the card and issue a new one.

Serves me right, I should have known better. Matter of fact, I should have read Eddy’s Scams I would have been better off. I have no idea what I was thinking, I have found many sites with grant monies,yes legit. These monies are for not for profit organizations and education.

If you are into research or the medical field in some way, HHS,NIH, and a few others have grant money for the organization. There are also,private foundations that will help fund projects. There are a ton of grants for educational purposes whether you are a school or a not for profit organization serving the needs of the community. There are even good opportunities for your schools PTO/PTA to apply for some of these grant in order to do certain activities for the students in the school. As Eddy has said so many times over if it is legit,you do not have to pay to receive the information.

shaunisha - April 4, 2009 Reply

I was wondering how do you see if you qualify for the cash grant?

    Eddy Salomon - April 6, 2009 Reply

    Hi Shaunisha,
    You visit one of the free grant sites we mentioned in the article above and read what the qualifications are. All grants have different qualifications and ways to apply. Hope that helps.

Leslie - March 25, 2009 Reply

Hi,
Thanks for the info on the scam about gov’t grants. I saw it on a website and was going to try it out. Fortunately I read down to the end and saw the “free info” was only for 7 days and then it was a 56.90 charge for every 30 days plus almost $30 for a tax guide that you had to get. If the money is free and I dont have to pay it back why would I need a tax guide? Oh I know why I am not a big CEO for a big insurance company that makes millions of dollars in bonuses. (oh yes I did go there!)
Anyway thanks for the info it is much appreciated

Leslie

Judy - March 24, 2009 Reply

Dear Eddy,
I just had to say Thank you for the Laugh. St. Patrick’s Day has just passed and being 100% Irish, I am little green leprechaun that eats lucky charms and has a pot of gold stashed at the end of a rainbow. And actually, There REALLY is a pot of gold at the end of the Rainbow. It is your wonderful website.
I bid you a GREAT DAY.
Judy

Veronica N. - March 24, 2009 Reply

Hi Eddy,

Thanks so much for sharing this information it is certainly useful…..I do have a younger brother working on his bachelors degree and the gov’t for which he told me is in delay or just does not cover for his Financial aid something like that…. I am pretty sure he will read this article.

Thanks so much once again keep up the great work.

    Eddy Salomon - March 24, 2009 Reply

    Hi Veronica,

    You’re welcome. There are grants that the government gives for college. I know that’s how I was able to pay for some of my college expenses. But again that information can be obtained for free at the school. Now actually qualifying the grant is another matter as your brother can attest to. It’s not as easy as asking for it. They really make you jump through hoops to get that money. Even if you do go through the whole painful process, you’re not guaranteed that money. So it really sickens me to see these guys misrepresenting the facts with their grant “products”.

    In any event, happy to share with you guys. I’m glad it’s helping.

Larry - March 24, 2009 Reply

Wow! I didn’t realize that the gov’t grant scam had become so sophisticated. I remembered seeing the Matthew Lesko ad on TV for the first time (you know, the crazy guy in the Riddler outfit), and thinking “what a great scam”. Being a grad. student at the time, I knew how difficult it was to get a research grant. The phrase “publish or perish” was definitely true; if you could not publish meaningful results in an accredited scientific journal, you wouldn’t be able to get funding from gov’t grants. I’m sure that the other types of grants have similar hoops that you have to jump through in order to get the money. Now I’m sure that Lesko’s book is less of a scam since he may have gathered all of the free information into one easy-to-read format, but to hear about “grant databases” etc. and how they apply monthly charges is very disturbing for how slick the scam works.

    Eddy Salomon - March 24, 2009 Reply

    Hey Larry,

    That’s how these scammers stay ahead of the game. They just make some slight modifications & boom they can victimize more people. I worked at a research center and I remember the panic writing for a grant would cause among the staff. So that’s how I already knew this stuff was BS. But unfortunately many folks haven’t been fortunate enough to have the same type of first hand knowledge you & I had because of our past experiences. I do remember that Matthew Lesko guy. I have to agree with you in that he’s just providing a resource that provides you all the information on various grants in one book. But I don’t have first hand experience with his stuff so I wouldn’t know. But I don’t think dressing in a money suit really helps add to his credibility. lol

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