Action 9 investigates grant scammers who use Facebook to find victims

ORANGE COUNTY, Fla. — A Windermere man said he lost $28,000 to scammers after a Facebook friend convinced him a scam government grant was real. He thought a longtime friend had recommended the agency.

It started with a Facebook friend’s post.

“He said he received a federal grant from the government that was tax free,” said Paul Joseph.

Joseph thought the tip came from a hometown friend. “He's very trustworthy and I know he's very frugal,” said Joseph.

He followed his friend’s advice and found federalgrants.com online. He supplied personal information on the website for a $500,000 grant with what he thought was a federal agency.

Joseph was later contacted by text and told he needed to pay an $8,000 processing fee. He sent his Facebook friend a message to make sure it was real.

“I said to Randy, ‘Is this legitimate?’ and he said, ‘Yes,’” Joseph said.

Joseph wired money to a Bank of America account. He showed Action 9 text conversations in which  the company asked for nearly $20,000 more in advanced taxes. Joseph paid, but now admits he missed glaring red flags.

“I threw caution to the wind when my dreams took over,” he said.

He never got a grant, and his total loss is nearly $28,000.

Federal grant scams have been around for years, but the Facebook friend hustle on the front end is new. It’s not the actual friend. Instead, it's a hacked or cloned account. And it's really a scammer convincing the Facebook user to apply for a fake grant.

“Even if you're looking at the profile picture of someone you've known for years and trust, it's still wise to beware. Still do your homework,” said Better Business Bureau President Holly Salmons.

Joseph contacted the Sheriff’s Office and the Federal Trade Commission.

He wanted money to pay the college tuition for his two daughters and to make investments. “They've intruded into my life and stolen from me,” said Joseph.

A borrower would never have to pay for a government grant.

Action 9’s Todd Ulrich reached out to the California company that owns the grant website, but never got a response.

Cox Media Group