Grant Scams and Warning Signs

Grant scams come in several forms. Being aware of the most common types helps you identify fraudulent contact quickly:

• Upfront fee scams — You are told you have been approved for a government grant but must pay a processing fee, insurance, or administration charge to release the funds. Legitimate government grants never require upfront payment.
• Impersonation scams — Fraudsters call or email claiming to be from HMRC, the British Business Bank, Innovate UK, or your local council. They may use spoofed email addresses or phone numbers that appear genuine. Always verify by calling the organisation's official number.
• Fake grant databases — Commercial websites that charge a subscription to access a "database" of grants that is actually publicly available for free, or that is outdated and irrelevant. Most UK grant information is freely available via GOV.UK and Growth Hub websites.
• Grant consultant fraud — A consultant charges large upfront fees promising to find and secure grants on your behalf, then disappears or fails to deliver. Legitimate grant consultants typically charge based on work done and may include success fees, but should not require large upfront payments for unverified services.
• Identity theft — A fake grant application form collects your National Insurance number, bank details, or Companies House credentials for use in fraud. Never submit personal or financial information unless you have verified the legitimacy of the scheme through official channels.

Be suspicious if any of the following apply to a grant offer you receive:

• You were contacted out of the blue by phone, email, or post about a grant you did not enquire about
• The offer promises a guaranteed grant — real grants are always competitive or subject to assessment
• You are asked to pay any fee before receiving the grant — processing fees, insurance, or "release charges" are red flags
• The funder is not listed on GOV.UK, the Charity Commission, or the FCA register
• The website is newly registered or has poor-quality content, spelling errors, or uses a free email address such as Gmail or Hotmail
• You are pressured to act immediately or told the offer expires very soon
• The caller claims to be from a government department but cannot provide a verifiable reference number or direct-dial number
• The grant is described as "unclaimed" or "set aside" for businesses in your area — this is a common fiction used in cold-call grant scams

If you receive an unexpected grant offer, take these steps before engaging further:

• Search the funder independently — Look up the funder's name on GOV.UK, the Charity Commission, or through a general web search. Contact them using contact details you find independently, not the ones provided in the suspicious communication.
• Call the official number — If someone claims to be from HMRC, call HMRC's official helpline (0300 200 3300). If they claim to be from Innovate UK, call UKRI's switchboard. Do not use any number provided in the suspicious communication.
• Check Companies House — If a company is offering grant-finding services, look it up on Companies House (find-and-update.company-information.service.gov.uk). Check when it was incorporated, who the directors are, and whether it is in good standing.
• Ask your Growth Hub — If you are unsure about a business grant offer, your local Growth Hub can often verify whether it is a legitimate programme.
• Never pay upfront — If you are asked to pay any sum before receiving a grant, treat it as a scam unless you can independently verify the legitimacy of the request through official channels.

If you have been targeted by a grant scam or have lost money:

• Report to Action Fraud — The UK's national reporting centre for fraud and cybercrime. Report online at actionfraud.police.uk or call 0300 123 2040. They will assess the report and refer it to relevant authorities.
• Report to your bank immediately — If you have made a payment, contact your bank as quickly as possible. Under the Contingent Reimbursement Model (CRM) and new Payment Systems Regulator rules from October 2023, banks must reimburse victims of authorised push payment (APP) fraud in most cases, up to £415,000.
• Report to HMRC if impersonated — Forward suspicious emails claiming to be from HMRC to phishing@hmrc.gov.uk. Report suspicious calls to HMRC's fraud hotline.
• Report to the FCA — If a firm claiming to offer financial services (including some grant intermediary services) is not on the FCA register, report it at fca.org.uk/scamsmart.