Free COVID relief funds could be a grant scam

In tough economic times, it can be hard to turn down free money, especially if it appears to come from a friend. BBB.org/ScamTracker is receiving numerous reports that con artists are stealing information from Facebook and Instagram accounts and promoting phony COVID-19 relief grants to their network and friends list.

You get a Facebook Messenger chat or Instagram direct message that looks like it comes from a friend, relative, community member or another person you trust. The message is telling you about a grant for COVID-19 relief. Your “friend” may claim to have already applied and received thousands of dollars.

Scammers are either hacking social-media accounts or creating separate lookalike profiles by stealing photos and personal information. Either way, these con artists are banking you will trust a message that appears to come from someone you know. For example, one recent victim was contacted by someone posing as a leader in their church.

“This scam was very convincing. [It looked like it came from] someone I know and trust,” they wrote. “Because of COVID-19, I’m laid off, so I would try it. [The scammer] said my name was on a list to receive this grant money. I lost $1,000 of my unemployment.”

While many people report being targeted through social media, that’s not the only way scammers are reaching potential victims. Other versions of this scam use phone calls and text messages.

No matter how you hear about a “grant,” there is a major catch. To get the “grant,” you need to pay upfront first. The scammer will claim the money pays for “delivery” or “processing.” The scammer will take the money, and your grant will never materialize.

Be wary of your friends’ taste online. Your friend or family member may have impeccable judgment in real life. So if their online presence, email messages, social posts and direct messages appear different in nature, it could be they have been hacked or have an impersonated account.