High riskGovernment & Tax

Government Grant Scam

This scam uses a message, call, or social media post claiming you qualify for a free government grant, then asks for a processing fee or your bank details to 'release' money that does not actually exist.

Quick verdict

Risk level
High risk
Scam type
Government impersonation scam
Main red flag
An offer of 'free' government grant money that requires you to pay a fee or hand over bank details first.
What to do first
Do not pay or share any details. Genuine grants are applied for through official channels and do not require an upfront fee.

How this scam works

This scam uses a message, call, or social media post claiming you qualify for a free government grant, then asks for a processing fee or your bank details to 'release' money that does not actually exist.

Government and tax scams impersonate tax authorities, police, or agencies, using threats of arrest, fines, or deportation to force fast payment, often via gift cards, transfers, or crypto. Real agencies do not demand instant payment this way or threaten arrest by phone.

In short, the giveaway is usually simple: An offer of 'free' government grant money that requires you to pay a fee or hand over bank details first. Do not pay or share any details. Genuine grants are applied for through official channels and do not require an upfront fee.

Scammers rotate tactics constantly, the same operation may also run the IRS Tax Scam and the Social Security Scam. See the full Government, Tax & Legal Scams guides hub, or test a suspicious message with the scam checker.

How to spot this scam

  • An unexpected message saying you have been 'approved' for a grant you never applied for
  • A request for a processing, delivery, or insurance fee to 'release' the money
  • Requests for payment by gift card, wire transfer, or cryptocurrency
  • A demand for your bank login or full card details to 'deposit' the grant
  • Pressure to act fast before the offer or funds 'expire'

What the message looks like

Example pattern, not a real report
Example pattern: 'Congratulations! You have been approved for a $9,000 government relief grant. To release your funds, pay a one-time $200 processing fee by gift card. Reply now to claim before it expires.'

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.

What gives it away: An offer of 'free' government grant money that requires you to pay a fee or hand over bank details first.

The scale of it

$2.7B
reported lost to imposter scams in the US in 2023
Source: US Federal Trade Commission
Gift cards
a top payment method scammers demand, which real agencies never use
Source: FTC Consumer Advice

How to protect yourself

  • Treat any grant that requires an upfront fee as a likely scam
  • Apply for genuine grants only through official government websites you find yourself
  • Verify any agency name by searching for its official contact details independently
  • Block the sender and report the message to your national anti-fraud body

Already responded? Do this now

  • Do not send any further payment or share more details
  • If you paid, contact your bank straight away to try to stop or dispute the transaction
  • If you gave bank details, ask your bank to secure your accounts and watch for fraud
  • Change passwords on any account where you entered information

Mistakes to avoid

  • Do not pay a fee to receive 'free' grant money
  • Do not share your bank login, card number, or one-time codes
  • Do not trust caller ID or official-looking logos alone to confirm identity

Related scams to know

High risk Government & Tax

IRS Tax Scam

This scam uses a call, voicemail, text, or email pretending to be the IRS or another tax agency, claiming you owe back taxes and threatening arrest, lawsuit, or deportation unless you pay at once by gift card, wire, or crypto.

Created by Scam or Safe Editorial Team
High risk Government & Tax

Social Security Scam

This scam uses a call, robocall, or voicemail claiming your Social Security number has been 'suspended' over suspicious activity, then pressures you to confirm your number or pay to 'reactivate' it.

Created by Scam or Safe Editorial Team
Medium risk Text Message

Lottery Winner Scam

This scam tells you that you have won a lottery or prize draw you never entered, then asks for an upfront fee, tax payment, or personal details to release the supposed winnings.

Created by Scam or Safe Editorial Team

Common questions

Do real government grants require an upfront fee?
No. Genuine grants do not ask you to pay a processing or release fee to receive them. A request for money upfront is a strong sign of a scam.
They knew my name and address - does that make it real?
Not necessarily. Scammers often use personal details from data breaches or public sources to sound convincing. Verify any offer through official channels rather than trusting that they have your details.
How do real agencies contact people about grants?
Real agencies generally direct you to apply through their official website and do not cold-call or message offering guaranteed money in exchange for gift cards or fees.
What should I do if I already paid?
Contact your bank or the gift card company immediately to report it, keep all records, and report the scam to your national anti-fraud centre. Acting quickly improves the chance of recovering funds.

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.