$12.5B
FTC-reported fraud losses in 2024
FTC says consumers reported losing $12.5 billion to fraud in 2024.
education grant scam
Scammers contact students or parents claiming they qualify for an education grant or scholarship that requires a fee to apply or a tax payment to receive.
“government grant scam”
↓ 41%Key indicators
Usually targetsLow-income households
Often hitsSmall business owners
Common regionUnited States
Last updated2026-04-04
Estimated impact
$960
median reported loss
Typical range$60 – $6.0K
Recovery rate~15%
Scam breakdown
1
Scammers target students through social media ads, emails, or phone calls, offering guaranteed scholarships or education grants.
2
The application collects personal information and requires a fee for processing, disbursement, or taxes.
3
The grant does not exist — the scammer profits from the fee and uses the personal data for identity theft.
What to do first
Search for legitimate scholarships through your school's financial aid office, the Department of Education, or studentaid.gov.
Related terms
fake scholarship scamstudent grant fee fraudeducation funding scamFake government grant scamsSocial mediaRisingLow-income householdsSmall business ownersStudentsSmall business ownersCreators and online sellersEducators and studentsUnited StatesCanadaUnited Kingdomfake scholarship scamstudent grant fee fraud
Real-world example
How this scam plays out in practice
Based on reported patterns. Names and details are illustrative.
The setup
Ahmed, 35, a low-income households, encountered what appeared to be a legitimate fake government grant scams situation while using Social media. Scammers target students through social media ads, emails, or phone calls, offering guaranteed scholarships or education grants.
Step 2
What happened next was calculated: The application collects personal information and requires a fee for processing, disbursement, or taxes.
Step 3
The pressure escalated quickly: The grant does not exist — the scammer profits from the fee and uses the personal data for identity theft.
The outcome
Ahmed realized something was wrong when you are offered a scholarship or grant you never applied for. By that point, significant damage had already been done — money sent, personal information shared, or trust exploited.
The lesson
Search for legitimate scholarships through your school's financial aid office, the Department of Education, or studentaid.gov. Ahmed's experience shows why you are offered a scholarship or grant you never applied for and the grant requires an application fee, processing fee, or tax payment are the clearest early warning signs.
How to identify it
- You are offered a scholarship or grant you never applied for
- The grant requires an application fee, processing fee, or tax payment
- The organization pressures you to act immediately or lose the funding
- Pause before paying, clicking, or sharing information. Scammers rely on speed.
- Verify the sender, company, or agency using a phone number or website you already know is legitimate.
- Treat secrecy, urgency, and off-platform payment requests as strong scam signals.
What to do now
- ✓Search for legitimate scholarships through your school's financial aid office, the Department of Education, or studentaid.gov.
- ✓Legitimate scholarships and grants do not require upfront fees from applicants.
- ✓Report education grant scams to the FTC and your school's financial aid office.
What to save before reporting
- ✓Save the message, profile, phone number, email, or URL that was used.
- ✓Keep payment confirmations, receipts, and account alerts before you dispute or delete anything.
- ✓Write down the timeline while the details are still fresh.
How big is this problem
You are not alone — this scam affects millions of people.
These numbers come from government agencies and official reports. If you have been affected, know that this is a widespread problem — not something that only happens to careless people.
FTC 2024 fraud losses
Imposters
Most common FTC fraud category in 2024
FTC says imposter scams remained the most commonly reported fraud category in 2024.
History and evolution
- This scam family tends to persist because the social-engineering pressure works even when the exact scripts, platforms, and payment methods change.
- The specific packaging evolves over time, but the core pattern usually stays the same: create urgency, control the channel, and push action before verification.
- The FTC warns that scholarship and grant scams are among the most common fraud types targeting students, with complaints peaking during enrollment periods.
Recovery and follow-up
- ✓Save the messages, receipts, account alerts, and transaction details before you block or delete anything.
- ✓Report the scam through the official platform or government channel that best matches where it happened.
- ✓Search for legitimate scholarships through your school's financial aid office, the Department of Education, or studentaid.gov.
- ✓Legitimate scholarships and grants do not require upfront fees from applicants.
- ✓Report education grant scams to the FTC and your school's financial aid office.
Why this pattern keeps working
Even when the story changes, most scams still use the same pressure pattern: urgency, authority, and a request to move money or data fast.
The FTC warns that scholarship and grant scams are among the most common fraud types targeting students, with complaints peaking during enrollment periods.
FTC Consumer Sentinel 2025
Where to report it
If you have been targeted by this scam, reporting it helps authorities track the pattern and protect others. United States has dedicated agencies that handle fraud reports.
ReportFraud.gov
Federal Trade Commission
Central U.S. consumer fraud reporting portal.
File an IC3 complaint
FBI Internet Crime Complaint Center
FBI portal for internet-enabled crime reports.
Start identity theft recovery
IdentityTheft.gov
Official U.S. identity theft recovery plan builder.
Explore further
Understand the bigger picture
Who is most at risk
Who this scam targets
Primary targets
Low-income households, Small business owners, Students, Minorities
Geographic concentration
United States, Canada, United Kingdom
Primary channel
Social media — Fake government grant scams
Why this group is vulnerable
Low-income households are particularly vulnerable because this scam exploits trust in familiar brands, authority figures, and time-sensitive decisions. The growing number of reports suggests that awareness among this demographic remains low.
Sources and methodology
How we verify this information
OpenScam tracks scam patterns using a combination of government consumer protection databases (FTC, IC3, Action Fraud), platform-specific fraud reports, and verified consumer complaint data. Each entry is cross-referenced against at least two independent sources before publication.
Severity ratings are based on financial impact potential, reversibility of damage, and volume of reports across multiple reporting channels. Trend velocity reflects the rate of change in report volume over the most recent 90-day window.
This page was last verified on 2026-04-04. Red flags, recovery steps, and reporting resources are reviewed quarterly against current agency guidance.
Evidence and indicators
- The FTC warns that scholarship and grant scams are among the most common fraud types targeting students, with complaints peaking during enrollment periods.
Source notes
- FTC Consumer Sentinel 2025
Frequently asked questions
Common questions about education grant scam
How does the education grant scam work?+
Scammers target students through social media ads, emails, or phone calls, offering guaranteed scholarships or education grants. The application collects personal information and requires a fee for processing, disbursement, or taxes. The grant does not exist — the scammer profits from the fee and uses the personal data for identity theft.
What are the warning signs of education grant scam?+
You are offered a scholarship or grant you never applied for The grant requires an application fee, processing fee, or tax payment The organization pressures you to act immediately or lose the funding
What should I do if I encounter education grant scam?+
Search for legitimate scholarships through your school's financial aid office, the Department of Education, or studentaid.gov. Legitimate scholarships and grants do not require upfront fees from applicants. Report education grant scams to the FTC and your school's financial aid office.
Who is most at risk for education grant scam?+
This scam primarily targets Low-income households, Small business owners, Students, Minorities. It is most commonly reported in United States, Canada, United Kingdom and typically appears on Social media.
Is education grant scam on the rise?+
education grant scam is currently on the rise with growing reports. It has been reported across US, CA, UK. Last updated 2026-04-04.
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Help someone avoid this scam.
Scammers succeed because people do not talk about it. If you or someone you know has been affected, there is no shame in it — it happens to millions of people every year. Share this page with friends and family so they know what to look for.
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