Despite numerous IDA-related scams over the years, the International Development Association (IDA) is indeed the World Bank’s arm that assists the world’s poorest nations.

IDA, which was founded in 1960, contributes to development by offering zero to low-interest loans (known as “credits”) and grants for initiatives that promote institutional development, reduce disparities, as well as enhance people’s living conditions.

Nevertheless, there are a plethora of IDA-related scams online and offline and the scammers have become so tech-savvy and sophisticated that it’s difficult to realize you’ve been scammed until it’s already late. The International Development Association supplements the World Bank’s original financing arm, the International Bank for Reconstruction and Development (IBRD).

IDA funds a variety of advancement initiatives that promote fairness, wealth creation, employment generation, increased profitability, as well as better living standards. IDA is among the globe’s biggest sources of support for the world’s 75 poorest nations.

Over half of IDA nations earn all, or nearly all, their IDA funds as grants with no repayments. Such grants are intended for poor nations that are at a heightened risk of debt frustration. IDA has traditionally been supported primarily through donations from the governments of its participating countries.

Every three years, funders gather to top up IDA tools as well as evaluate its strategic plan. The twentieth (IDA20) replenishment of IDA’s resources was completed in December 2021, culminating in a landmark $93 billion investment bundle for IDA nations for financial years 2022-2025.

Common Grant Scams in the United States Today

Although there are numerous grant scams in the United States, these are some of the most common. You can avoid becoming a victim if you keep your sights trimmed and are extremely careful if any of the following arrive in your inbox.

  1. Fake government organizations

There is no Commonwealth Grants Agency. It’s among the most common federal govt. grant scams since folks are tricked by the title.

  1. Social media “you’ve won a grant” notifications

Another widely known method of defrauding individuals is via social media, particularly Facebook. It’s a con job if you own a Facebook account linked to your company and you receive a notification or a friend request from the Federal Support Council or some other official-sounding entity.

  1. Requesting personal identifying information

It’s a scam if you receive an email or social media text informing you that you’ve been awarded a free grant and are asked to make available your savings account, and Social Security number, or pay a small fee. Grant agencies would never notify you through social media.

  1. Messages from Washington, D.C.

Scammers don’t just actually function via email; some also act through the use of phone calls. Setting their outgoing call location to Washington, D.C. is a typical strategy. Don’t ever share confidential information over the phone, and if you have whatever worries put the phone down and try looking up the agency that called you.

  1. Send money in order to receive your grant funds

The majority of those would be caught by your email spam firewall, however, they are also popular. You’ll receive a message from an official-sounding establishment informing you that a significant amount of cash is available to be moved to your bank account.

All you could do to get your grant funding is submit a deposit, normally a few hundred bucks, to “initiate the release” of the phony funds. You get nothing, however, the fraudsters get some money and your banking information.

How to Spot and Avert Grant Scams

  1. You must submit an application for a federal grant

A grant program can only be obtained by applying for one. is the main application platform. The same probably applies to almost all grants, whether they come from the national govt., your city councils, or an agency. Be extremely cautious if you’ve not tried to apply for a grant.

  1. If it seems too good to be true, then it normally is

Doing certain investigations is perhaps one of the simplest methods for preventing a grant scam. You can find out if the agency is legitimate by using your search engine of choice. It’s simple for federal grants. Federal grants are distributed by over two dozen government entities. If the alleged organization’s title is not on the roster, it’s most likely a scam.

  1. Stay current with scam alerts

Grant scams have become so prevalent that they are tracked by a number of government online platforms. has a list of websites where you can keep an eye out for and confirm scams. The Better Business Bureau maintains a scam tracker webpage that keeps records of scams in your region. Talk to other local entrepreneurs in your network too though; they may be aware of emerging scams.

  1. Keep an eye out for red-flag words and phrases

Another thing worth noting is that scammers frequently utilize phrases intended to attract your interest. You can use that awareness to protect yourself from scams. Below are several popular red flag words to be aware of:

“You are qualified for a government grant.”

“There is no need for an application to receive this federal grant.”

“You could really receive a government grant for a fee.”


As previously stated, the International Development Association (IDA) is the World Bank’s arm that supports the earth’s poorest nations, despite multiple IDA-related scams over the years. The most effective way to safeguard your local company from grant scams is to remain vigilant. Be aware that there are scammers around nowadays, as well as be cautious of any activity that appears dubious.