“You have money waiting, but there’s a small processing fee before we can release it.” That sentence should immediately make you suspicious when someone claims the money is coming from a government agency. Scammers routinely use real-sounding refunds, benefits, grants, and government programs as bait because the promise feels plausible, particularly when the recipient is already expecting money. The Federal Trade Commission warns that government agencies don’t charge people money to help them obtain refunds, and anyone demanding an upfront payment to release one is a scammer.
The requested payment may be disguised as a processing fee, administrative charge, tax, retainer, or other official-sounding expense. Scammers may also ask for bank information supposedly so they can deposit the money, which can put both your money and identity at risk. While legitimate professionals can charge for optional services such as tax preparation or legal representation, you should not have to pay a stranger a “release fee” simply to receive these government refunds and payments you’re legitimately owed. That said, here are eight government refunds and payments you should never have to pay a fee to receive.
