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Grant Scam and Frauds

Federal grants are distributed in order to fund relevant research and development activities. The majority of funds are used as intended within eligible activities however there is a small percentage that is misused in a deceitful way or abused. These types of behavior are considered fraudulent activities.

As part of the post-award phase, it is the applicant’s responsibility to carry out the goals and objectives as stated in the grant. Federal grant funds are subjected to certain regulations, oversight and audit.

The three main responsibilities of award recipients are:

  1. Recipients are stewards of federal grant funds;
  2. Funds must be used for the purpose stated in the application;
  3. Costs and expenditures must be justified by the recipient.

Applicants should also be aware of Grant Scams. Scam artists often prey on an individual’s access to grants buy applying a fee. There are no costs incurred for submitting an application. The lastest alerts on grant scams can be found here.

Fraudulent behavior is monitored and managed by Federal Inspectors General (IG) within each government agency. The uniformed goal of the IG is to stop the abuse of the system and to combat fraud. If there is suspected fraudulent activities, other government agencies such as the Federal Bureau of Investigation and the Financial Fraud Enforcement Task Force may further the investigation.