Agencies warn of fake stimulus check scams

As many of you know, the announced federal stimulus package includes sending Americans a check to offset lost income from the coronavirus crisis. Scammers wasted no time in taking advantage of this news. BBB is getting reports on BBB Scam Tracker about government imposters calling about the checks. Watch out for these phony government grants that ask for personal and banking information.

How the Scam Works

You receive a message or see a social media post claiming that you qualify for a special COVID-19 government grant. With the news stories about the proposed stimulus plan, you figure it must be true. You click the link and are taken to what seems to be an official website asking you to enter your personal information and/or banking details. It’s “necessary” to verify your identity and process your grant.

As always, there are several versions of this con. BBB Scam Tracker has received reports of people contacted through text message, social media posts and messages, and phone calls. One variation is a Facebook post telling seniors about a special grant to help pay medical bills. The link leads to a website claiming to be a government agency called the “U.S. Emergency Grants Federation” (phony, of course). The site requests your Social Security number under the guise of needing to verify your eligibility. In other versions, scammers claim that you can get additional money – up to $150K in one case – or even receive your funds immediately. All you need to do is share personal details and pay a small “processing fee.”

No matter what the message, don’t click! In addition to taking your money, these sites also can download malware to your device and use your information for identity theft.

According to USA Today, agencies are also alerting citizens that phone calls, texts or emails asking for your personal or financial information to get the stimulus checks are not legitimate.

Fake Internal Revenue Service e-mails, which ask recipients for personal financial information to receive additional stimulus checks has also been making the rounds. The IRS never uses e-mail to initiate contact with taxpayers, and will never ask for personal information through e-mail. To date, the IRS reports that taxpayers have forwarded them more than 33,000 of these scam e-mails. Taxpayers who receive unsolicited e-mails claiming to be from the IRS can forward the message to a special e-mail address: phish@irs.gov.

Tips to Spot a COVID-19 Grant Scam:

-Remember, government agencies do not communicate through social media avenues like Facebook. So, be wary of unsolicited messages.

-Do not pay any money for a “free” government grant. If you have to pay money to claim a “free” government grant, it is not really free. A real government agency will not ask you to pay an advanced processing fee. The only official list of all U.S. federal grant-making agencies is Grants.gov.

-Check for look-alikes. Be sure to do your research and see if a government agency or organization actually exists. Find contact info on your own and call them to be sure the person you’ve heard from is legitimate.

-Don’t assume an offer in a social media message is from a real friend. It’s easier for scammers to impersonate real people on social media. Call your friend to verify they contacted you (and share this Scam Alert with them if they are spreading false information).

If you’ve spotted a scam (whether or not you’ve lost money), report it to BBB.org/ScamTracker. Your report can help others avoid falling victim to scams.