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Scammers and con artists are targeting vulnerable citizens and small businesses in hope of cashing in on the economic stimulus package, administration officials said this week.

In one scheme, consumers are sent what appears to be a stimulus check with instructions to call a toll-free number. When they do, they are told to deposit the check and wire back a certain amount -- either to enter into a phony foreclosure rescue program, or obtain information on how to use stimulus funds to purchase foreclosed properties in their area.

In another rip-off, an e-mail featuring a photo of President Obama promises a "free stimulus check" of up to several thousand dollars. Recipients of the e-mail are then directed to another link, where they are told they must "participate in the program" in order to get a check. That, in turn, requires users to complete several "reward offers," such as the purchase of magazine subscriptions, or obtaining a credit card that can be activated only with a purchase.

The scams were highlighted last week in an alert issued by the Recovery Accountability and Transparency Board, the lead oversight group for the stimulus.

Board Chairman Earl Devaney, inspector general at the Interior Department, has designated detection and public dissemination of Recovery Act-related scams as a specific function of the panel, according to spokeswoman Nancy DiPaolo.

"In order to reach as many citizens as possible, [the board is] looking to coordinate with groups such as the International Association of Chiefs of Police, the National Sheriff's Association, AARP and the National Ad Council," she said.

The board's staff also will organize fraud detection outreach with existing federal programs, such as the Federal Trade Commission's Consumer and Business Education Office and the Justice Department's Internet Crime Complaint Center.

One of the more insidious scams, administration officials said, preys on the elderly, using the fact the Recovery Act provides a one-time payment of $250 to citizens who receive certain types of federal benefits such as Social Security.

The scheme works likes this: a con artist calls or e-mails senior citizens and falsely claims to be from the Internal Revenue Service or the Social Security Administration. The scammer then asks for personal information such as the recipient's Social Security number, bank account, or credit card number in order to deposit the stimulus payment. The scammer then cleans out the victim's bank account, or runs up credit card charges.

In reality, to receive the $250 payment, "recipients need do nothing," DiPaolo said. "The payment will be sent to them just as their regular Social Security benefits are -- either by direct deposit, or through a paper check."

Other scammers send official-looking letters on what appear to be agency letterhead.

For example, a number of small businesses have received a letter, supposedly from the Small Business Administration, stating they might be eligible to receive a tax rebate under the stimulus. The letter adds, however, that before SBA can determine eligibility, the company must fill out an authorization form. The form asks the small business to provide the name of its bank and an account number.

The bogus letter is signed by "John Steinberg," who is described as "entrepreneurial development administrator" at SBA. Agency spokesman Michael Stamler said no such person works at the agency. The agency's inspector general has tracked the letters to an outfit operating in Russia. A similar scam using Transportation Department letterhead also has been uncovered.

Other swindles are less blatant and appear to tip-toe around the law.

For instance, for an upfront fee of $2,600 -- and larger payments thereafter -- a Nevada firm purports to offer guidance on how small businesses can receive federal and private foundation grants from stimulus funds. But, Stamler said SBA and other federal entities offer the same information at no cost to businesses.

"People should not be paying for things they can get for free," Stamler said. Nonetheless, he said, the company's pitch is likely not illegal.

Guy Burtt, president of Riverstone Development Group, a North Carolina general contractor that has been suffering in the down economy, said he was tempted by the solicitation but was scared off when he heard about the upfront cost.

According to FTC, some of the other stimulus scam artists:

* Ask recipients to send a small processing fee, supposedly to get a much larger check in return.

* Request bank account numbers so they can deposit checks. Then they use the information to clean out accounts, or open new ones.

* Encourage recipients to click on links, open attached forms or call phony toll-free numbers. But simply clicking the link or opening the document can install harmful software on the recipient's computer, providing an identity thief access to personal information.

Complaints about suspected Recovery Act scams can be filed with FTC, the Internet Crime Complaint Center, the FBI, the Bureau of Justice Assistance, or the Government Accountability Office's FraudNet Web site.