Financial scams can involve government grants

A great number of people honestly believe that the U.S. government just hands out cash to people on a whim. Washington doesn't give cash away, but that does not prevent people from taking part in a scam that continues to work.

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The thought of acquiring cash from the Government for the asking appears to be a prevalent one, as late night advertising suggests that grant money is available to just about anybody for any reason at all. The television advertising for grant money implies that if you need grant money for debt reduction or grant money to purchase a home, all you have to do is ask for it. That idea that there is federal money for everyone continues to flourish, but it simply isn't true.

The government does offer grants for a few situations. Uncle Sam will not be giving money away so you can pay off your Visa or Mastercard bill, and unlike a current scam that's making the rounds, he isn't giving money away by simply calling individuals out of the blue. The list of things for which government money is offered is quite lengthy, and can be had directly from a federal Website.

Individuals continue to fall for scams regarding government money. In a popular scam, crooks who claim to represent the United States government are calling their victims on the phone and claiming that the person is permitted to receive a grant money. The amount varies, but numbers often mentioned are either six thousand dollars or $12,000. The caller either tells the would be victim that the money is theirs with no obligation or that the money will be sent after a two hundred fifty dollar "application fee" is paid. The caller then requests particular financial information from the would be victim, including name, address, Social Security number and checking or savings account information. The caller explains that this application process, "by Federal law" requires depositing the money directly into the would be victim's checking or savings account. No check or paperwork will come through the mail, the caller says.

Once he or she has the victim's financial information, the person on the phone can either withdraw the two hundred fifty dollar "application fee" or simply take all the money out of the account. There is no money; the entire purpose of the telephone call is to steal the victim's checking or savings account information.

Properly filing for grant money from the government is not a simple thing to do, regardless of what the man with the question marks on his suit on it claims. The process of filing for, and obtaining, grant money is a lengthy and tedious one that involves quite a bit time and a great deal of documentation. The government doesn't hand out money; they take money, which is why we pay taxes. These financial scams continue to flourish because of the ongoing belief that Uncle Sam gives money away. Grant money is only given to people who can do things that the government would really like to see done. If you can come up with a way to take gold out of seawater inexpensively, you can likely receive a grant for it.

If a stranger contacts you and notifies you that you are entitled to grant money, hang up. Never provide personal or financial information to a stranger via the telephone, as only bad things can come from that.