A recent "grant scam" asked Ball State students for personal information needed to distribute grant funds, J. David Matthews, assistant director of scholarships and financial aid, said.
An organization named the Government Grant Information called multiple students, informing them that they are eligible for grants ranging from $8,000 to $25,000. Students were asked to provide personal information including their social security, bank or debit card numbers, Matthews said.
The organization explains to students that it costs $250 to apply for the grants and that the funds are guaranteed, he said.
Matthews said a staff member from the Office of Scholarships and Financial Aid contacted the Federal Trade Commission Wednesday and learned the scam has been targeting students for about two months.
"We've received a lot of calls about it," Louise Wilson, FTC supervisor said. "(The scammers) are just going and targeting people. They want money up front, and once they get that, you never hear from them again."
Matthews said while he is not sure how many Ball State students and students from other universities have been targeted thus far, the Government Grant Information is probably still targeting students nationally.
"We've had a couple of students come in and ask us about it," Matthews said. "Generally (the organization) wants your checking account number to take the $250 withdrawal out, and it's evidently being used for identity theft."
Matthews said the FTC is not sure how the Government Grant Information is obtaining the students' names. The commission is going to contact the Federal Bureau of Investigation so it can track the organization and, if appropriate, file criminal charges for fraud.
He said as with many scams, the "grant scam" has been common on college campuses throughout the past decade.
"It has a long history in the college financing area," Matthews said. "This is just another one that sprung up and we just wanted to make sure that students know about it. If it sounds too good to be true, it probably is."
Matthews said at least one Ball State student has already provided personal information to the Government Grant Information. Students who give out such information must act immediately to prevent scammers from eventually stealing their identity or their money.
"If you have given out information, we encourage you to close your account so you don't lose money and to open up another account," Matthews said. "We encourage students to be watchful of anything that asks for their social security number. Identity theft is now getting to be a big business."
Wilson said students should be especially wary of any phone call during which they are offered federal grants.
"The government does not call people to offer them grants," she said. "You can get most information about grants from the library."
Matthews said while the Government Grant Information has been contacting students primarily by phone, it is also common for scamming organizations to mail official-looking documents to potential victims to obtain their personal information, he said.
"With a computer you can make stuff look really good these days," Matthews said. "Just don't get involved with solicitations like this. If anyone who wants you to pay money to get money it probably doesn't work."
Matthews said he encourages all students to be especially cautious and to think twice before relaying their personal information the Government Grant Information and to any other person or organization.
"We don't have any idea who they're going to call next," he said.
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