Government Grant Scams
Americans lost $12.5 billion to fraud in 2024, according to the FTC.
Quick Answer
Government grant scams trick victims into believing they have received a free grant, leading to reported losses from all government impersonation scams of $797 million in 2025 alone (FBI IC3).
Think you've seen this scam?
Paste any suspicious text, email, or voicemail into our free checker — get a verdict in 5 seconds. Or get our free Scam Defense Playbook.
Free. No credit card. No signup required for the checker.
How It Works
1
A scammer contacts you unexpectedly by phone, email, text message, or social media with an offer of a "free" government grant.
2
The scammer claims you are pre-approved and can use the money for personal expenses like paying bills, home repairs, or education costs. They may impersonate a real agency or invent a fake one, like the "Federal Grants Administration."
3
To receive the grant, you are required to pay an upfront "processing fee" or "insurance fee." They will demand payment via wire transfer, gift cards, or cryptocurrency.
4
After you pay, the scammer may invent additional fees or disappear entirely. The victim never receives any grant money and loses the money they paid in fees.
Red Flags
- You are contacted out of the blue about a grant you never applied for.
- You are asked to pay a fee to receive a "free" grant. Real government agencies do not charge for grants.
- The scammer guarantees your eligibility or says no application is required.
- You are asked for your Social Security number or bank account information to "verify" your identity or to deposit the funds.
- The person claims to be from an agency that does not exist, such as the "Federal Grants Administration."
- You are pressured to act immediately to claim your money.
- The communication contains spelling or grammatical errors.
What to Do If Targeted
- Never pay a fee to claim a government grant. Government agencies will not ask you to pay processing fees for a grant.
- Do not share your personal or financial information with anyone who contacts you unexpectedly.
- Hang up on unsolicited calls and do not respond to texts or emails about grants you did not apply for.
- Verify the legitimacy of any grant by visiting the official government website, Grants.gov.
- Never make payments with gift cards, wire transfers, or cryptocurrency, as these methods are difficult to trace.
- Talk to someone you trust. Discussing the offer can help you spot the red flags before you lose money.
How to Report It
- FTC — File a fraud report with the Federal Trade Commission if you encounter a government grant scam.
- FBI IC3 — Report the scam to the FBI's Internet Crime Complaint Center (IC3).
- HHS — Report grant-related scams to the Department of Health and Human Services (HHS) Fraud Hotline.
- FCC — File a complaint about phone scams, robocalls, or unwanted calls with the Federal Communications Commission.
- AARP Fraud Helpline — Call 877-908-3360 for free support from trained fraud specialists. Available to anyone, not just AARP members.
Key Statistics
- The FBI's Internet Crime Complaint Center (IC3) received nearly 32,500 government impersonation complaints in 2025, with reported losses of approximately $797 million. — FBI IC3 2025 Report
- Losses reported to the FTC for government imposter scams increased from $171 million in 2023 to $789 million in 2024. — FTC 2025
- In the first quarter of 2024, the median loss for consumers who paid cash to government impersonation scammers was $14,740. — FTC 2024
- Adults aged 60 and over reported combined losses of $445 million in 2024 to impersonation scams where they lost more than $100,000. — FTC 2025
Get scam alerts before they hit your parents' inbox
One email per week. The scam that's spreading right now, the red flags, and what to tell Mom and Dad.
Free forever. Unsubscribe in one click.
Frequently Asked Questions
No, government agencies will not contact you by phone, email, text, or social media to offer you a grant for which you did not apply. Real government grants require a formal application process, and you can find all federal grant opportunities for free at Grants.gov.
Scammers use technology to fake or "spoof" caller ID information, making it appear as though the call is coming from a legitimate government office in Washington, D.C. Do not trust caller ID. The scammer could be calling from anywhere in the world.
The vast majority of government grants are awarded to organizations, institutions, and local governments for specific projects that serve a public purpose. Federal grants are generally not given to individuals to pay for personal expenses like paying off debt, home repairs, or other personal needs. You can search for legitimate government assistance programs at USA.gov.
Scammers demand payment via gift cards, wire transfers, or cryptocurrency because these methods are difficult to trace and nearly impossible to reverse. Once you provide the gift card number and PIN or send the cryptocurrency, the money is gone for good. A real government agency will never ask you to pay them using these methods.
Has this scam reached your family?
Ready to protect yourself?
We've vetted the tools that actually work — VPN, threat protection, and identity monitoring.
See our recommended tools →Get weekly scam alerts
One breakdown per week. Real threats. Zero fluff.
You're in! Check your inbox.