Beware those who offer free stimulus cash

The Atlanta Journal-Constitution

Wednesday, March 25, 2009

The sites certainly look official. President Barack Obama’s image and his campaign logo are displayed on some. One even resembles the design of the White House Web site.

But, consumer advocates say, Web sites suggesting people can get free cash from the federal stimulus program are trying to trick you.

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“The locusts are spreading across the land with false promises that they have access to sources of funds from the stimulus bill,” said Atlanta-based syndicated consumer-affairs talk show host Clark Howard. “The real truth is these people are going to separate you from your money.”

Some of the sites charge small shipping fees for the information. Others purport to offer free information about stimulus and other government grants. Signing up for information triggers trial memberships for various services that quickly convert to paid memberships that can cost hundreds or even thousands of dollars, according to the Federal Trade Commission.

The FTC warns that some scammers are even asking for bank account information by e-mail to “deposit consumers’ share of the stimulus directly into their bank account.” Instead, they may try to drain the accounts, the agency warned.

So far, no metro Atlanta consumers have complained of being tricked, said Fran Mitchell, director of Howard’s Consumer Action Center, which takes calls from consumers seeking advice.

Unlike the 2008 stimulus program, in which many taxpayers got rebate checks, only Social Security recipients get a direct cash payment from the 2009 stimulus package.

Some employees also will get additional cash when reduced withholding rates take effect next month, Howard noted.

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