Better Business Bureau Warns of Fake Grant Scams
Students and families should be aware of fraudulent offers that request processing fees for fake government grants.
Updated on Oct. 28, 2026 in Financial Aid
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The Better Business Bureau has issued a warning regarding an increase in fraudulent government grant scams targeting individuals. These scams use phone calls, emails, and social media to trick victims into paying fake upfront processing fees for non-existent grant money.
Why it matters
Fraudsters capitalize on the promise of free financial aid to steal personal information and money from students and families. Because government agencies do not offer grants via unsolicited outreach, these schemes often lead to significant financial loss.
The Better Business Bureau reports scams requesting a $500 processing fee to release a $13,000 grant. Officials warn that the Federal Grants Administration does not exist and no government entity sends unsolicited texts to offer money.
The players
Better Business Bureau
A non-profit organization that monitors marketplace ethics and alerts the public to consumer fraud.
The details
Scammers contact potential victims through phone, email, or social media, frequently impersonating government agents to build credibility. They promise large sums of free money, then request an upfront payment or processing fee to cover administrative costs. Once the payment is sent, the purported funds never arrive and the victim's personal data may be compromised.
Timeline
October 28, 2026: Better Business Bureau issued the scam warning.
Education Landscape
Education-related fraud remains a persistent threat as students seek additional aid for rising tuition costs. This warning from the Better Business Bureau highlights a recurring pattern where scammers exploit the confusion surrounding legitimate government financial-aid processes.
If you receive an unsolicited offer for a government grant, do not provide any personal information or payment. Contact your school's financial-aid office directly to verify if a legitimate scholarship or grant opportunity is available to you.
The takeaway
Legitimate government agencies will never ask you to pay a fee to receive a grant. If you encounter a suspicious request for payment, verify the claim by speaking with a trusted financial-aid adviser at your school.
Further reading
For more on securing legitimate funding, visit the Financial Aid section.
More information
To report a scam or check for alerts, visit the Better Business Bureau official website.
Source note: This article includes information reported by KYMA.
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Do you trust unsolicited offers for government grants or financial aid sent via text or email?
