Government Money Not Granted by Telemarketers

Friday, Sep 26, 2008

LITTLE ROCK -Attorney General Dustin McDaniel's office has recently received an increased number of consumer inquiries regarding offers of easy access to grant money available from the U.S. government. Consumers are receiving calls in which the caller claims that they can obtain thousands of dollars in government grants in exchange for a fee paid in advance. The caller may purport to represent a government agency and may call multiple times. Such offers are always scams, as no one is authorized to give special access to federal grants. Invariably, con artists will ask for money up front, or to access to your bank account or credit card.

"When the federal government issues grants, those grants go to causes and projects that benefit communities and the common good," McDaniel said. "Regardless of how persuasive a caller may sound on the phone, you will not be able to obtain grant money for your personal finances. It is merely a ploy to obtain your money or your personal information, which the caller can then use to steal your identity."

McDaniel offered these tips to avoid falling for a "free-grant" scam:

- You should never have to pay to receive information about applying for federal grants. You can obtain such information at no charge through your local library or on the World Wide Web.

- There are no guarantees. There are no "inside tracks" or "special-application processes" that can assure that you receive a grant. Everyone must go through the same application process to become eligible.

- Keep your bank-account information to yourself. Like other telemarketing schemes, the goal in a grant scam is to obtain your personal information and gain access to your money.

- Do not give out this information over the phone or on the Internet to a solicitor you do not know.