The 'free government grant'

Scammers falsely claim you qualify for free government money, then ask you to pay an upfront fee or share personal information to 'unlock' the grant.

Documented by the FTC & FBI IC3 · reviewed 2026-07-11T18:14:57.874Z

How it works

You receive an unexpected call, email, or letter claiming you've been selected for a government grant you never applied for. The sender creates urgency—saying the offer expires soon or that funds are limited—and asks you to pay a small processing fee or provide personal details like your Social Security number or bank account to 'verify eligibility' and receive the money.

What it can look like

You get a call from someone saying, 'Congratulations, you've been chosen for a $5,000 government assistance grant. To process your application, we need a $200 processing fee sent today, or the offer expires.' They sound official and may even reference a government program name.

How it unfolds

Scams like this follow a pattern. Knowing the arc helps you notice where you are — and step away before the ask.

You receive an unsolicited email, text, or phone call saying you've been selected for a free government grant—no application needed, no competition. The sender sounds official and uses government-like language or logos.

You're told the grant is real and waiting, but there's a small catch: you need to pay a 'processing fee,' 'tax,' or 'verification cost' upfront to unlock it. Pressure builds—the offer is 'limited time' or 'slots filling fast.'

You're asked to send money via wire transfer, gift card, cryptocurrency, or prepaid card. You may be told to keep it secret or that your bank will try to stop you (which should be a red flag).

After you pay, the grant never arrives. The sender stops responding, or new fees suddenly appear. You realize no legitimate government grant works this way—they never ask you to pay to receive free money.

Red flags

You're told you've won or qualified for money you never applied for.
You're asked to pay any upfront fee, tax, or processing cost to receive 'free' funds.
You're pressured to act immediately or the offer will disappear.
You're asked to provide Social Security number, bank details, or send payment via wire transfer, gift card, or untraceable method.
The caller won't give you a verifiable office address, phone number, or way to check their legitimacy independently.

What to do

Hang up and contact the government agency directly using a phone number from their official website—never use contact info the caller gave you.
Never pay any fee upfront for a grant, and never send personal financial information to an unsolicited caller or email.
Report the scam to the FTC at reportfraud.ftc.gov.

If it already happened

Acting quickly can limit the damage. You are not alone, and it is not your fault.

Stop all contact with the sender immediately. Do not send any more money, and do not respond to follow-up messages.
Contact your bank or card issuer right away—tell them you were scammed and ask if the transaction can be reversed or disputed. Do this even if time has passed.
If you sent money by wire transfer, gift card, or cryptocurrency, contact that service's fraud team at once; time matters for any possible recovery.
Report the scam to the Federal Trade Commission at reportfraud.ftc.gov. Include details of how you were contacted, what was promised, and how much you paid.

Sources

Guidance on this page draws on public, authoritative consumer-protection resources (verified live 2026-07-10). Documented by the FTC & FBI IC3 · reviewed 2026-07-11T18:14:57.874Z.

Spotted this or lost money? Report it at reportfraud.ftc.gov. This is general educational information, not legal or financial advice — and ScamVet never asks for your identity or account details.

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