Afflicter All About Accountability

FTC Shuts Down Alleged Government Grant Scams

The Federal Trade Commission is moving to shut down a group of web sites that appear to be operating government grant scams.

Last month the FTC got a court order to at least temporarily to shut down web sites affiliated with companies including Grant Connect LLC of Reno, Nev., and individuals including Rachel Cook, James Gray, Steven Henriksen, and Juliette Kimoto. A court hearing for the FTC’s lawsuit against the group is set for next month.

As described in the FTC’s complaint, Grant Connect web sites including grantconnectoffer.com were set up similarly to other government grant sites that we’ve written about before, including usagovernmentgrants.org and neverpayitback.com.

All have claimed to offer easy access to government grant programs as a money-making scheme. In reality government grant programs are usually highly competitive and available mainly to universities, non-profits and others in a position to achieve a public policy goal.

Ordering the grantconnector service also subjected people to charges of up to $70 a month that were only disclosed in small print. Like the other sites, the prominently displayed pricing would lead one to believe that they were only paying a couple of dollars for access to grantconnector’s information.

Government Grant Sites Are Still Scams — Even for Women

For reasons that are at this point mysterious, the term “government grants for women“ is one of the most popular searches on Google this morning. The afflicter hasn’t ascertained what’s driving this interest, but when you do this search, the number one site that comes up is usagovernmentgrants.org.

At first glance, usagovernmentgrants might not look like a scam. Its home page even includes a warning to “beware of other websites selling outdated information and old CDs for over $30.00.”

But try to apply for the “free” information usagovernmentgrants claims to offer on how to win government grants, and you will find your self routed through a series of forms, asking for more and more personal information, that ultimately leads to a credit card form for a $39.95-a-month membership service plus an ID protection service for $9.95 and a program called “Craigslist Income Secrets” for $11.95.

The site in fact looks like Neverpayitback.com, which we’ve written about previously.

So, we’ll repeat. The Federal Trade Commission has warned that there’s no reason ever to pay for information about government grant programs. Information about all of them is available for free at government web sites including grants.gov.

Applying for government grants also is not a good plan to earn extra money. They’re generally available to fund social programs, academic studies, etc., and winning the application process is competitive.

Grant Scam Website Advertising on Radio?

There appear to be a lot of government grant scam web sites that claim to offer exclusive access to information about government grants for a price.

One site that claims to offer exclusive information about grants appears to be getting a lot buzz lately. Afflicter has seen mention of Neverpayitback.com in a number of online forums. Word is that the site is advertising on radio.

Perhaps the site isn’t a scam. But we note that neverpayitback’s business appears similar to the Federal Trade Commission’s description of a government grant scam. The FTC warned in a notice it published in 2006 that consumers should never pay money for a list of government grant-making institutions. The are all available for free at grants.gov.

To be sure, neverpayitback.com claims to offer information about private foundation grants, as well as government grants. But the price appears to be steep.

Neverpayitback’s home page first asks for your email address before granting you access to what it promises will be “instant access to thousands of hard to find Private Foundations who are giving Millions of Dollars Away this week.”

Once it receives the email address, the site drops you onto a new page that asks you to fill out a short form of information including your name, employment status and household income. It offers, in exchange for the information and a $2.29 shipping and handling fee, access to a CD and a possible chance at a “free trial” to a service that’s supposed to include instructions for winning grants and a directory of 1,500 federal and private grants. A clock counts down over the form you’re supposed to fill out, with the warning, “Hurry! Claim your CD in the next — minutes!”

If you fill out that form, you’re sent to another page with yet a third form, this one asking for your address. At the end of the form is a check box next to the line, “Yes, I’m interested in generating multiple streams of income.”

Then, upon clicking on the button that it says will start your free trial, you’re sent to a fourth screen. This one asks for your credit card information. In larger type, the notice above the credit card form, reminds you of the $2.29 shipping and handling charge for the CD you asked for several pages ago.

Then, in smaller type, under the credit card form is this:

“By clicking Submit, I am ordering the Private and Federal Grant CD™ and trial membership for $2.29 S&H, after the 7 day trial I will be charged $39.95 a month thereafter if I do not cancel. I also agree to the 14 day and 21 day bonus trials to the Search Market Members Site™ and Network Agenda™ for $7.95 a month and $9.95 a month thereafter, should I choose not to cancel. I have read and agree to the Privacy Policy/Terms and Conditions. Charges will appear on credit/debit statements as “www.fedgrantusa.com”. For questions, call 1-888-249-4806. Customer service hours are now available 24 hours a day, 7 days a week.”

That comes to $57.85 for anyone who neglects to cancel their access to “free” money from the government and private foundations.