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3/31/2010

Lexington, KY - Many people are in debt due to the down economy…couple that with news stories about government stimulus programs, and it would be easy for someone to fall for THIS scam sent to your Better Business Bureau by a consumer.

It congratulates the consumer for being approved for a Debt Relief Grant of over 40-thousand dollars. It sounds very official…It says it can be used to pay tuition, start a business, pay medical expenses, and so on.

Included in the mailing is a check for almost $3-thousand dollars. The letter explains that this is to use to pay the required federal and state processing fees. The company calls itself Summit Grant Management out of Cloverdale Virginia. They urge the recipient to call them to get the details on how to make payment… and then the rest of the money will be delivered.

Not so fast...this whole thing is a scam. Here's why. The way this scam works is the company tells the "recipient" to cash the check and wire transfer the required fees to them.

And even though that check looks real and may fool the bank…it will come back counterfeit after it goes through all the routing. But, it will be too late…the recipient has already wired the cash, cannot get it back and must pay back the bank.

Other red flags…even though the letter gives a Virginia address…the envelope the whole thing came in carries a Canadian postmark and return address…and the phone number in the letter is also Canadian.

No one awarding you any legitimate prize or grant would ask you to pay a fee of any kind. And there are not government grants available for individuals like you and me to use for whatever we want. If you get this mailing, don't fall for it!

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Be a "Don’t Fall for It!" informant! If you have something to share you believe may be a fraudulent offer or scam, please let the BBB know! Call us at (859) 259-1008 or toll-free, 1-800-866-6668, or email us at info@lexbbb.com.