Stimulus scams are flourishing on the Web

One of the sites the FTC uncovered billed users a one-time fee of $99, plus almost $50 a month for an "online resource center." It also automatically signed up users for a second membership that cost $30 a month, Harrington said. If you failed to follow complex cancellation procedures, you would pay more than $1,000 over the course of a year.

Among the sites still operating, the charges ranged from $70 to more than $100 a month.

One site, for example, said in its terms and conditions that users are charged $74.95 a month for access to a "help center" after a seven-day free trial. "No refunds will be given for failure to use the requested and/or provided services," it said. The company's terms revealed that after 14 days a second "membership" kicks in, to a "mentoring center," which costs $29.95 more a month.

Another top recommendation of the supposed scam-busting site charges $39.95 a month (after seven days "free") and signs up users for two other services that total $19 a month. The site also warns that the charges are nonrefundable.

You'd also read in the terms -- if you managed to find them -- that both of the sites guarantee nothing and users are cautioned to use the sites "at their own risk."

Aside from the hidden charges, Harrington said the biggest problem with the sites is that they mislead people into thinking that they're going to get grants to pay off their credit cards, mortgages or buy Christmas presents. Nothing could be further from the truth.

You can find real government grants at www.grants.gov. And you can see how government stimulus funds are being spent at www.recovery.gov.

But the average consumer wouldn't qualify for most of the government grants available. For example, the stimulus act created grants for those willing and able to recruit, train and manage AmeriCorps volunteers. It also set aside $20 million for rural business development. But to get one of these grants, you'd need to be an existing government contractor, state or municipal agency or a nonprofit.

There are also grants for scientific research, clean-fuel technology and for those with ideas on how to make the criminal justice system more efficient. There are housing grants for Native American organizations and supporting the development of rural businesses.

Grants to help you pay off your credit cards? Get real.

"People who make a living defrauding consumers are quite opportunistic," said Harrington in an interview. "They read the paper. They watch the news. When you combine the serious economic downturn that we're experiencing with government programs and action, they seize on the combination of circumstances to defraud consumers."

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