A message arrives with thrilling news: you have been selected for a government grant of several thousand dollars, and you do not have to pay it back. There is just one small step — a processing fee to release the funds. That fee is the entire scam, because the government does not award grants to people who never applied, and never charges to hand them out. Our GetMyPassword team explains how to recognize a government grant scam.
How the scam works
You are contacted by phone, text, email or social media — sometimes from a hacked account of someone you know — telling you that you qualify for a “free government grant” for things like home repairs, education or simply being a “good taxpayer.” To receive the money, you must first pay a one-time fee for “processing,” “delivery” or “taxes,” usually by gift card, wire transfer or a payment app. Once you pay, no grant appears. The scammer may invent further fees or pivot to stealing your bank and personal details for identity theft.
Red flags to watch for
- A grant you never applied for — real grants require an application.
- A fee to “release” the funds, paid by gift card, wire or a payment app.
- A message from a friend’s account urging you to claim the same offer.
- Pressure and secrecy — claim now, and do not tell anyone.
- Requests for your bank login or full personal details to “deposit” the grant.
How real government grants work
Genuine government grants go to organizations and specific programs far more often than to individuals, and you always have to apply through an official channel — they are never awarded out of the blue. The government does not contact you on social media to announce a prize, and it never asks you to pay a fee to receive money. Anyone who requires gift cards or a wire before “releasing” a grant is a scammer, full stop. If you did not apply, there is no grant.
The government does not charge you to give you money, and it does not award grants you never applied for. A “processing fee” to release free funds is the scam announcing itself.
How to protect yourself
Never pay a fee to claim a grant, and never send money by gift card or wire to “unlock” funds. Ignore unsolicited grant offers, and if one comes from a friend’s account, contact them another way — their account may be hacked. If you shared bank or personal details, watch your accounts and consider a fraud alert. Because these scams also harvest logins, keep your banking and email behind a unique password from our password generator and two-factor authentication.
Frequently asked questions
Is a government grant offer a scam?
If you never applied and are asked to pay a fee to release the funds, yes. Real government grants require an application and are never awarded by surprise message, and the government never charges a fee to give you money.
Why would the offer come from a friend?
Scammers hijack social media accounts and message the owner’s friends, since a familiar name feels trustworthy. If a friend messages you about a “grant they received,” their account is likely hacked — verify with them through another channel.
What if I already paid a grant fee?
Stop contact and report it to your payment provider to try to recover the money, especially with a card. Watch your accounts for fraud, consider a fraud alert if you shared personal details, and secure your banking and email with strong, unique passwords and two-factor authentication.