Watch Out: Two Economic Stimulus Scams

Yesterday, I wrote about a scam possibly connected to the economic stimulus package Social Security payments. Unfortunately, that is not the only scam to be seen during this recession. As always, understand that if it sounds too good to be true, it probably is.

Also, be aware that you can get information you need via the government. Recovery.gov offers information about what you are entitled to under economic stimulus measures, and how to get it. In many cases you do not have to do anything. Be on your toes against the following two scams, designed to take advantage of those who are looking forward to money from the government:

1. Mortgage foreclosure consultants. These have been popping up with increasing frequency as people seek to avoid foreclosure. With President’s foreclosure prevention plan in the news, this type of scam is likely to proliferate even further. The scammers often get you to sign over the title of your home, or even promise to negotiate a loan modification — if you provide an upfront fee. The scammer disappears with your property. Do not work with someone who cold calls you or comes to your door. Instead work with a housing counselor approved by HUD.
2. Economic stimulus grants. Scammers want to convince you that they have “insider” information on getting free government grant money. You pay a fee, and get information about government grants. Sometimes you do not actually get information. In actuality, the “insider” information is what you could get for free by visiting sba.gov and grants.gov. Watch out especially for those promising to help you get grants to pay off student loan debt or other personal debt; they don’t exist.

Keep your eyes peeled for fraudulent information and attempts to get your money. It’s sad but true: In these tough times scammers will make money by preying on those who can least afford to be scammed.