MEMPHIS, Tenn — Here in the Mid-South, the Better Business Bureau (BBB) wants people to know about a new social media scam.
If you see one of your loved ones messaging you on Facebook about receiving money through a federal grant, the BBB said that has "red flag" written all over it.
Just within the past month, the BBB said at least 50 people were scammed between Shelby County and Madison County.
This scam is so believable that people are getting swindled out of hundreds and in some cases, even thousands of dollars.
One victim said he lost out on $300 after a scammer pretending to be a loved one on Facebook sent him a link about grant money. The scammer even tried to get an additional $1,000 out of him.
Here are the signs to look out for.
“They are very smart. They are very skillful. You would think they went to graphic design school because they are pretty much able to spoof websites, caller i-d’s,” BBB Mid-south Communications Specialist said.
They are also using your loved ones to reel you in. Trice said if one of your loved ones on any social media site, especially Facebook appears to reach out to you about a government grant, it is the biggest red flag.
“So of course, people trust it because it’s a friend or a family member that reaches out to them. They’ll be given a first and last name of someone and contact of someone to get the government grant. Pretty much the consumers will reach out to these people,” Trice explained.
By that point, it will be too late if you give them the information, they ask you for.
“People will trust them with their personal information like first name, last name, social security number, then they’ll make up a number,” Trice said. “The big number that’s been used is a $20,000 loan. For some odd reason, they have been approving these people for these $20,000 grant loans.”
The only thing you will have to do is pay the taxes upfront or loan insurance.
“It’s very weird because they want you to send it via gift card,” Trice stated. “That is a big red flag because why would a government want you to send them a gift card in order to receive a free grant?”
And if you use a gift card, there is no way you can get your funds back, since those cards are considered gifts.
Trice recommended that if you do receive a similar message, you should call that person and confirm it was them.
“A red flag will also be…government grant scams, you should not have to call anyone to have to receive that as well as, we have had situations to where people are being called directly, so their caller i.d. is spoofed saying that it is from the U.S. Department of Treasury and they are calling you like you are eligible for a government grant scam, cause they will never call you,” Trice said.
Also, if you get an email saying you are eligible, that is another red flag, because the government will never email you.
This kind of grant loan is one that you will have to look on the government’s online database to see if the loans are available.
You will have to also do a detailed application, and if you are approved, they will let you know via mail or email saying you are approved along with taking extra steps.
You also will not ever have to pay any money upfront. You are given that money, instead.
If you are ever suspicious of any potential scams, the BBB encourages that you report it to them or the Federal Trade Commission.
Lastly, if this scam has happened to you through social media, Trice recommended that you report the page and get others to also report it.