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BBB: Watch Out for ‘Government Grant’ Scam

(Courtesy: MGN Online)

(Courtesy: MGN Online)

CLEVELAND, Ohio — The Cleveland Better Business Bureau is warning residents about a new “government grant scam.”

According to the BBB, a Cleveland woman reported losing several hundred dollars to the scam this week.

She said she received a call from someone claiming to be with the Federal Reserve Bank of New York and was told she was eligible for a $10,000 government grant given to families in need.

The caller told her all she had to do was pay $730 using Green Dot MoneyPak cards to cover processing fees.

After getting the cards and providing the serial numbers, she was asked for an additional $370 to cover state taxes. When she refused to pay, she was told her $10,000 was frozen.

BBB says other consumers have reported receiving similar calls, and emphasized the government does not award grants in such a manner.

The BBB says consumers should avoid involvement in offers or purchases that require you to wire money in advance or provide payment using Green Dot MoneyPak or similar debit cards.

For more on this scam, click here.