Thousands of people worldwide have amazing ideas to help humanity but lack the financial backing to carry out these projects. Little wonder every year, billions of dollars are given out to social enterprises to support their noble projects.

As a result, more organizations and businesses resort to grant opportunities to provide the financial backing they need to implement their innovative solutions. Unfortunately, some people prey on innocent 'Grant seekers' to exploit them. This week, we bring you up to speed on Grant related scams and how to avoid them.

What is a grant related scam?

The allure of so-called "free money" has enabled scam artists to prey on people's hopes by promising access to grants – often for a fee. In reality, grants are rarely awarded to individuals seeking personal benefits, and applying for a grant is completely free.

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Hints on sniffing out grant-related scams:

If an individual contacts you about an opportunity to obtain free money in the form of a grant, be extremely wary. You are likely being targeted as a scam prey. Any of the following statements should put you on high alert:

#1. "Great news! You are eligible to receive a government grant."

The government does not contact individuals to award grants for which there has been no application, this is a top red flag.

#2. "For a small fee, you can obtain a grant."

No funding body will charge a fee for individuals or entities applying for a grant opportunity, except if you are paying for the services of a grant writer (and of course, the grant writer is not the one giving out grants). While financial information may be required as part of the application process, there should never be a cost to you.

#3. "The Federal Bureau of Grant Awards has awarded you a $10,000 grant."

If you haven't applied for a grant, beware of messages telling you to pay to redeem a certain amount of money. The messages may even provide a valid address for a government office, adding a touch of realism to their claim, but do not be fooled. First ask yourself, 'What have I done to deserve this huge money from you?'

#4 "This type of grant does not require an application."

Every grant involves an application. A very competitive application process is involved. Also, you cannot apply for grants over the phone or via email. Any individual claiming that a grant does not require an application, or requires only a phone call or an email, is attempting to scam you.

#5 "You have been awarded a grant that you can spend any way you like."

Grant is not free money. It is usually awarded for specific programs, research, or projects. Anybody promising you free money to spend as you like is trying to scam you.

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Want to win legit grants? Talk to Grant Master

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