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Grant Overpayment Fraud

A new scam relating to online grants is on the rise, according to the Better Business Bureau, law enforcement and other agencies.

Victims are solicited online regarding grants that may be available to them for education, debt relief, low income subsidy, or any other type of "financial aid". Responding victims apply for their grant and are sent printed information along with a check, typically for $4,975.00.

After receiving the check, they are directed to a website, which instructs the victim to purchase a GREENDOT Reloadable or MoneyPak stored value credit card and load it with the grant broker's "commission". They are promised a second, larger check after the stored value card number is e-mailed to the broker. The card is quickly liquidated and the original check is later returned as counterfeit, or account closed.

* GREENDOT Reloadable/Money Pak stored value credit cards are legitimate cards but are being used as part of this scam.

To avoid these types of scams, keep in mind, a legitimate broker will not ask for a commision through a stored value credit card. 

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