Fake Government Grant Scam Report

Scam Presentation

Source: "U.S. Department of Grants Management" (fake) Email: grants@usgrants-management.org Offer: $25,000 Small Business Innovation Grant Requirement: $498 "processing and verification fee"

Email Analysis

Content Examination

1. Official Appearance:

   • Government logos and formatting
   • Professional language
   • Reference numbers and codes
   • Apparent signatures

2. Psychological Triggers:

   • Limited time offer (48 hours)
   • "Pre-approved" status
   • Success stories included
   • Official-looking seals

Verification Failures

1. Domain: usgrants-management.org (gov domains use .gov)
2. Contact: Generic contact form only
3. Authority: No such department exists
4. Process: Real grants never require upfront fees

Business Impact Analysis

Target Profile

• Small business owners
• Recent startup founders
• Minority business owners
• Those affected by economic conditions

Potential Consequences

1. Direct Loss: $498 fee
2. Information Risk: Business and personal data theft
3. Follow-up Scams: Marked as vulnerable target
4. Time Waste: Hours spent on fake application

Investigation Details

Technical Analysis

• Email Headers: Routing through multiple proxies
• Website: Hosted on cheap hosting, no physical address
• Payment: Credit card processing through high-risk merchant
• Pattern: Similar to 8 other grant scam operations

Historical Context

• Frequency: Increases during economic downturns
• Variations: COVID relief, disaster recovery, innovation grants
• Evolution: More sophisticated over time
• Enforcement: Several arrests in past year

Protective Actions

Immediate Response

1. No Engagement Policy:
   • Did not click links
   • Did not provide information
   • Did not pay fee
2. Reporting Actions:
   • Forwarded to reportphishing@apwg.org
   • Reported to FTC
   • Notified SBA Office of Inspector General
   • Filed Quiet-Report

Business Protection

1. Education:
   • Trained staff on grant scam recognition
   • Created verification checklist
   • Established approval process for fee payments
2. Procedures:
   • Designated grant application point person
   • Required multiple verification steps
   • Official channels only for government communication

Legitimate Grant Information

Official Sources

1. Grants.gov: Official government grants portal
2. SBA: Small Business Administration grants
3. State Programs: Verified through .gov websites
4. Foundation Directory: Legitimate private grants

Red Flag Checklist

1. Upfront fees required
2. Guaranteed approval promises
3. Pressure to act immediately
4. Unofficial email domains
5. Requests for sensitive information early

Impact Assessment

Businesses Protected: 5 (shared warning with network) Financial Loss Prevented: $2,490+ (if all paid) Time Saved: 20+ hours wasted on fake applications Awareness Created: Industry newsletter warning

Recommendations

For Businesses

1. Verify all government communications through official websites
2. Never pay for "free" government money
3. Consult with SCORE or SBA for legitimate opportunities
4. Share scam attempts with business networks

For Authorities

1. Public awareness campaigns
2. Quick takedown of fraudulent domains
3. Clear official communication channels
4. Stronger penalties for government impersonation