'Vile And Outrageous' Scam Targets PA Residents, State Treasurer Warns

PENNSYLVANIA — A new scam is targeting Pennsylvania residents, the state treasurer's office said Monday. The scam promises a state grant, but asks residents to pay "tax money" first, using gift cards or another method.

In this latest scam, residents will receive a call, email, or letter "claiming to be from the Pennsylvania Treasury Department or the Federal Reserve Bank, fraudulently indicating that the recipient will be awarded grant money – but first must pay taxes."

Treasurer Stacy Garrity said this appears to be a "multi-faceted" scam, and said the state "does not announce grant awards, and it does not collect taxes."

"In addition, Treasury will never request that a payment be made with a gift card – and neither will any other legitimate government agency," Garrity said.

In one instance, an elderly Indiana County resident got a phone call telling him he would receive a $25,500 grant from the state — but first, he had to pay thousands of dollars to the caller, using gift cards.

The resident was bilked out of thousands of dollars after buying the gift cards, said Garrity, who shared a letter that the resident received from the scammer (see below).

After the man called the scammer back and provided the information needed to access the gift cards, he got the above letter via email, said the Treasurer.

A phone number listed in the letter forwards to a voicemail box "falsely indicating that the caller has reached an employee of the Federal Reserve Bank," Garrity's office said.

Eventually, the victim's brother stepped in, she said.

“This is a vile and outrageous scam,” Garrity said. “Fraudsters and scammers are despicable criminals who will stop at nothing to exploit innocent people to steal their hard-earned money. I urge everyone to stay vigilant and be extra suspicious of any communication that seems too good to be true.”

Officials said that those who believe they have been the victim of a scam or attempted scam should report it immediately to the Federal Trade Commission, the Pennsylvania Attorney General, and their local law enforcement agency.

Also, if you or anyone you know has received suspicious correspondence claiming to be from the Pennsylvania Treasury Department, officials ask you to contact the department at https://www.patreasury.gov/contact/ or by calling 717-787-2465.