Scammers have become increasingly sophisticated, using social media, email, fake websites, and phone calls to deceive unsuspecting victims. But, there are ways to stay one step ahead. You can protect yourself and your business from potential threats by staying informed and aware. In this article, we’ll explore common red flags of grant scams and provide tips to help ensure your business’ safety.
How to Recognize Grant Scams
Since scammers impersonate legitimate organizations, it can be difficult to recognize when they’re scamming you. Here are some red flags to look out for:
- Random calls or emails – Organizations will not randomly contact you to award a grant that you have not applied for.
- Additional fees – Real grants will not require an upfront payment or processing fees, especially through untraceable methods, like gift cards or wire transfers.
- Sense of urgency – A common scam tactic is to create a false sense of urgency so that you feel pressured to act fast or face losing out.
- Requests for sensitive information – Scammers may ask for sensitive information, like your Social Insurance Number, banking information, address, or even your birthdate. Don’t share this information until you’ve ensured they’re legitimate.
- No strings attached – Real grants have specific eligibility criteria. If a grant seems too good to be true, it probably is.
- Mistakes in email communications – Poor grammar or spelling can be clear signs that you’re being targeted for a scam. Also, pay attention to slight differences in things like domain names or email addresses, as scammers often try to replicate them to sound official.
- Unclear information – If the communication doesn’t reference details about the grant’s purpose, criteria, or how the funds should be used, it’s likely a scam. Also, if it doesn’t include contact information or a physical address, that should be a red flag.
How to Protect Yourself and Your Business
Research
A simple way to check if a grant provider is legitimate is by checking their website, contacting them directly, looking at their reviews, and searching for scam warnings online.
Scammers can manipulate their email addresses and messages to make you believe they’re from a legitimate source, so never assume communications are real. Call the company or organization in question directly, but do not use the information provided in the email. Instead, find their contact information online.
Also, do not click on links received via text, email, social media, and so on. They provide an easy in for cybercriminals to put viruses, malware, or spyware onto your devices, where they could access your private information.
Don’t Give Out Personal Information
Be wary of unsolicited communications where someone is requesting your personal information, such as your name, address, birth date, Social Insurance Number, or banking information.
For businesses, ensure to educate all employees not to provide or confirm any information, including, the business’ address, phone number, any account numbers, or information about office equipment.
Be Cybersecure
Here are some ways to keep your computers and sensitive information safe:
- Have anti-virus software installed and keep it up to date
- Don’t click on attachments or links in emails or text messages from unknown senders
- Enable multi-factor authentication
- Only log into accounts from trusted sources
- Create strong passwords
- Teach employees how to spot and report scams
For more tips, check out the Government of Canada’s campaign, Get Cyber Safe, and their quick guide to cyber security for small businesses.
What to Do if You Encounter a Scam
If you suspect you’re being scammed, don’t respond to any messages or provide them with any information. It’s always better to double-check the sender’s legitimacy before interacting with them.
You can report fraud and cybercrime to the Canadian Anti-Fraud Centre.
Safe Ways to Find Grants
Fortunately, there are safe and reliable ways to find grants. Check out the Government of Canada’s Business Benefits Finder and Granted Consulting for great, trustworthy opportunities.
Small Business BC is Here to Help
SBBC is a non-profit resource centre for BC-based small businesses. Whatever your idea of success is, we’re here to provide holistic support and resources at every step of the journey. Check out our range of business webinars, on-demand E-Learning Education, our Talk to an Expert Advisories, or browse our business articles.