Medium riskBusiness

Fake Business Grant Scam

In this scam, fraudsters offer fake government or foundation business grants, charging application or release fees and harvesting company and bank details for funding that does not exist.

Quick verdict

Risk level
Medium risk
Scam type
Fake funding (business)
Main red flag
An unsolicited business grant offer that needs a fee or your bank details.
What to do first
Verify grants only through official government or funder websites.

Understanding this scam

In this scam, fraudsters offer fake government or foundation business grants, charging application or release fees and harvesting company and bank details for funding that does not exist.

Small-business and workplace scams target companies with fake invoices, supplier and CEO impersonation, payroll diversion, bogus directory or registration fees, and purchase-order fraud. Business email compromise is among the costliest of all frauds.

If you take one thing from this guide, make it this: An unsolicited business grant offer that needs a fee or your bank details. Verify grants only through official government or funder websites.

If your message looks slightly different, check the Green Energy Grant Scam or the Boiler Grant Scam, both are close cousins of this pattern. Every related guide lives in the Small Business & Workplace Scams guides, and the scam checker can scan the text you received.

A typical example

Example pattern, not a real report
Example pattern: 'Your business qualifies for a government grant! Pay the small processing fee and confirm your bank details to release the funds.'

This is a fictional, anonymised example used to illustrate the pattern. It is not a verified real message, and any names are used only to show how the scam typically reads.

The tell here: An unsolicited business grant offer that needs a fee or your bank details.

What the data shows

$2.9B
reported lost to business email compromise (BEC) in the US in 2023
Source: FBI Internet Crime Complaint Center
$12.5B
total reported internet-crime losses in the US in 2023
Source: FBI Internet Crime Complaint Center

Warning signs

  • An unsolicited offer of a grant you did not apply for
  • Application or 'release' fees to receive funding
  • Requests for company and bank account details
  • Pressure to claim before a deadline
  • A funder or scheme you cannot verify officially

Your safest response

  • Verify grants through official government or funder sites
  • Never pay a fee to receive grant funding
  • Do not share bank details to 'release' funds
  • Report fake grant offers to the authorities

If you have already engaged

  • Contact your bank if you paid or shared details
  • Watch for misuse of your company information
  • Keep records and report the offer
  • Apply only through official funding channels

What to avoid

  • Do not pay fees to receive a grant
  • Do not share bank details to release funding
  • Do not trust unsolicited grant 'approvals'

You might also see

Medium risk Utility & Energy

Green Energy Grant Scam

In this scam, callers, ads, or doorstep agents offer fake government green energy grants for insulation, solar panels, or heat pumps, harvesting personal details, taking deposits, or signing you up for poor-value work.

Created by Scam or Safe Editorial Team
Medium risk Utility & Energy

Boiler Grant Scam

In this scam, calls, ads, or doorstep visits offer free boilers, insulation, or energy grants, then harvest your personal and bank details, charge bogus assessment fees, or push costly, unnecessary work.

Created by Scam or Safe Editorial Team
High risk Bank & Payment

Advance Fee Loan Scam

A lender guarantees approval for a loan regardless of your credit, then asks for an upfront 'insurance', 'processing', or 'first payment' fee before releasing the money. Once the fee is paid, the promised funds never arrive.

Created by Scam or Safe Editorial Team

Questions people ask

Do real grants charge a fee to release funds?
No. Genuine grants do not require an upfront fee to receive the money. A 'processing' or 'release' fee is a clear scam sign.
I never applied but got approved. Suspicious?
Yes. Being 'approved' for a grant you never applied for is a common lure to charge fees and harvest your bank and company details.
I paid a grant fee. What now?
Contact your bank, watch for misuse of your company information, keep records, report it, and apply only through official channels.
How do I find genuine business grants?
Search official government and funder websites directly, and verify any scheme there. Ignore unsolicited approvals and fee demands.

Last reviewed June 2026 · Written & reviewed by the

Disclaimer: This page provides educational information only to help you recognise common scam patterns. It is not legal, financial, cybersecurity, or law enforcement advice, and it does not confirm whether any specific message, company, or person is genuine or fraudulent. When in doubt, contact the official organisation directly and report concerns to your local authorities.