The lure of government grants is enticing, but make sure you do your due diligence before allowing anyone to assist you in this pursuit.

Being offered free money, especially from the federal government, is exciting. Think of the many ways you can use your "funds" to acquire a home, invest in business, or pay for your bills and college fees. But, watch out. While the government does provide grant funds, there's no such thing as easy money - money that you have not applied for.

Federal grants are awarded to states, city governments, organizations, educational entities or individuals who have applied for funds. There's a grant application form required to process your eligibility. According to the National Procurement Fraud Task Force, the U.S. government awards nearly $450 billion in Federal Assistance Agreements annually, in the form of grants, to help support community development projects and programs, fund research, and promote the arts and social sciences.

However, these federal grant funds are susceptible to various forms of scams. Scam artists have found ways to potentially lure you to part with your hard-earned money, while you will be left nothing in return.