How to Avoid Financial Assistance and "Free" Scams
With over 17 years of experience helping people find financial assistance programs and free items, we have seen how scammers target those in need. Whether you are looking for help with rent or utilities, a free car or other stuff, government or charity programs that may provide money, or cash-back apps, your safety is the priority. Always keep this in mind - the reality is that a real charity or government agency will never ask you to “pay money to get money”.
The Golden Rule: If a program or any agency asks for money upfront to get "free" help, it is a scam. Legitimate agencies that provide financial assistance, government grants, or charity giveaways (food, phones, clothes, etc.) never require an "activation fee," "processing fee," or "delivery charge."
Another Red Flag: Never pay any money and never give any compensation, period. If they ask for payment via gift cards, Venmo, Cash App, or Cryptocurrency to "unlock" your benefits or process an applications, it is 100% a scam.
Unfortunately, but the reality is, scammers all too often target people who are struggling and actively looking for relief. They often target the underserved, seniors, disabled and maybe people in which English is their second language. They imitate charities, invent government grants, misuse the names of real programs, and create a false sense of urgency. Understanding how these scams work is one of the most effective ways to protect yourself while searching for help.
1. General signs of scam targeting people seeking help
Most financial assistance scams or “free giveaways/stuff” follow predictable patterns. While the names and stories may change, the warning signs remain consistent. Legitimate government programs (like LIHEAP, child care vouchers, SNAP or TANF or your state’s version) and major charities (like The Salvation Army, Saint Vincent de Paul or United Way) will never do the following:
- Charge a "Processing Fee": There is never a fee to apply for government grants or charity aid.
- Request Payment via Gift Cards or Wire Transfers: No real agency will ever ask for payment. Requests for payment using gift cards, wire transfers, cryptocurrency, or peer-to-peer payment services are another clear warning sign. Government agencies and nonprofit organizations do not accept payment through Google Play cards, iTunes cards, Western Union, Zelle, Cash App, or similar services. Legitimate aid never requires an upfront cost to "unlock" funds or “process” an application.
- Guarantee Approval: Legitimate aid from any organization, whether a non-profit or the government, depends on eligibility and funding availability. The fact is no one can "guarantee" you a grant or financial help before you apply.
- Look for "Pressure" Tactics: Scams use "Limited Time Offer" or "Immediate Action Required" to stop you from thinking clearly. Real assistance programs or giveaways have set application windows and, unfortunately, often “bureaucratic application processes” that don't change based on a countdown timer.
In addition to the list above there government agencies that list common fraud schemes scams. The websites list categories with descriptions as well. The FBI has a running list, with the FBI page of scams being a great source. The Federal Trade Commission (FTC) is another federal government organization that gives tips on avoiding scams.
2. Scams by category and/or type of need
Scammers adapt their tactics based on what you are searching for. Be alert for the following tactics when looking for the following:
- Free Cars, Computers or Phones: Be wary of social media ads or "private individuals" claiming to give away cars or smartphones. They often ask for a "shipping", “title” or "insurance" fee. Real programs (like Lifeline for phones or Free Charity Cars) are handled through verified providers, not private DM conversations.
- Food Pantries, Clothing Closets or Charity Giveaways: While these services are almost always safe, be careful of "mobile pantries" orany distribution site that ask you to register by providing your full Social Security number or bank details on an unencrypted website. Legitimate programs may ask for basic household information, but they do not require sensitive financial data or payment.
- Cash Back and "Money" Apps: Only use well-known apps (like Rakuten, Ibotta, or Fetch). Avoid any "money-making" apps that require you to "invest" your own money first to unlock your earnings. Any app that requires you to invest your own money upfront, pay a membership fee to unlock earnings or savings, or recruit others before receiving cash should be avoided.
- Government Grants: The "Government Grant" scam is the most common. Scammers may call, text, pay social media influencers, or email claiming you were “selected” for a federal grant or stimulus payment. Federal grants are not awarded through unsolicited messages, on social media, ads or emails. Government agencies do not contact individuals at random to distribute free money.
3. Protect your personal information
To get help, you will eventually need to provide documentation to a legitimate agency or program your are applying too. However, you should never provide the following to an unverified source:
- Your Social Security Number / SSN: Only provide this to established, physical offices or verified government portals (ending in .gov). While proof of residency or location is generally required, any organization requesting a SSN should be viewed skeptically.
- Bank Login Credentials: Legitimate applications may allow secure connections through third-party services, but they will not ask for your username or password directly. Never share your username or password - for any account. Legitimate apps will use secure third-party connections like Plaid.
- Upfront Deposits: Whether for a "free" apartment or a "free" laptop or to “prioritize an application”, a request for a deposit is a major red flag. Never pay, even when framed as refundable or temporary. Again, legitimate assistance does not require advance payment to receive help.
- The 2FA / OTP Theft: Scammers no longer just want a Social Security Number; they want a One-Time Passcode (OTP). They trigger a "forgot password" on a victim's bank or EBT account and trick the user into reading the code back to them over the phone or DM.
- The Mobile Browser Exploit: On phones, browsers often hide the address bar when you scroll down. Scammers use "swipe-up" ads on social media to send people to perfect site replicas where the victim can't see the fake URL once they start reading.
4. Beware of "social engineering" type fraud on modern platforms
Scams no longer just happen via phone calls or websites. They live where you spend your time.
- Social Media Profiles: Scammers "clone" the profiles of real charities or government officials by taking their name or something very close to the name (maybe one letter is changed). Check the "Account Transparency" or "Join Date". Double check the spelling. As in general if a "major agency" profile was created 3 months ago, it’s fake.
- Deepfake Video/Audio: Be skeptical of videos of "celebrities" or "politicians" endorsing a specific grant. As put one example, AI-generated video is now a primary tool for "Free Money" scams on TikTok and Facebook.
- The "Private DM" Trap: Government agencies (like Social Security or HHS) will never message you first on Facebook, WhatsApp, or Telegram to offer you a "special grant."
5. How to verify a source or program
Don't rely on .org or .gov alone, as scammers can buy "expired" trusted domains. They can really use any type of domain these days.
- Ignore the Ads: Scammers often buy the top "Sponsored" spot on Google, Facebook, Tik Tok or other sites. Always skip the ads and look for the organic results. Be mindful that often Google or other sites now make it very hard to see the “sponsored” label, so you need to be careful on what you click.
- Call the agency: Legitimate local charities, nonprofits and government agencies (whether national or local) can usually be contacted by phone and visited in person. A verifiable address and local office presence add an important layer of credibility.
- Cross-Reference Authority: Do not just "Google it." Use professional oversight sites:
- Charity Navigator or GuideStar to verify 501(c)(3) status.
- Better Business Bureau (BBB) specifically to check the "Scam Tracker" for that organization's name. The scam checker site is: https://www.bbb.org/scamtracker/.
- Check the email: Before clicking a link in an email or text, Check the "Sender" Address. Hover over the sender's name. If the display name says "Official Grant Office" but the email is [email protected] or a string of random characters, delete it.
What to do if you have been scammed
If you have already shared information or paid a fee, take these steps immediately.
- Contact your bank, credit card company or financial institution: Freeze any cards or accounts that may be compromised. Do not be “embarassed” to contact them as every minute can count and all banks/financial companies have teams dedicated to protecting consumers.
- Report it to the FTC: Visit ReportFraud.ftc.gov (Website is: https://reportfraud.ftc.gov/) to file an official report.
- Identity Theft: If your SSN was taken or compromised in any capacity, visit IdentityTheft.gov (website: https://www.identitytheft.gov/) to start a recovery plan.
Our Commitment to Accuracy and Safety
NeedHelpPayingBills.com manually researches and reviews the organizations listed on this website to ensure they are legitimate nonprofit organizations or government agencies at the time they are published. The site does not charge users for access, does not sell personal data (see our privacy policy), and does not accept payment in exchange for listing services.
As we state many places on this site, there is never any guarantee to getting help. Programs, eligibility rules, and availability can change over time, so readers should always verify details directly with the agency providing assistance before applying.
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