Beware of the National Financial Hardship Loan Center Phone Scam

What is the Financial Hardship Department scam? What do you do if you receive a scam email or call? Read more.

Gaetano DiNardi is a growth advisor to software companies like Docebo, Cognism, and Workvivo. As the former head of organic growth at Aura, Gaetano helped launch the companys SEO program. He has also written for publications like HBR, Fast Company, and Nasdaq.

Alina Benny is an Aura authority on internet security, identity theft, and fraud. She holds a bachelors degree in Electronics Engineering from the Cochin University of Science and Technology and has nearly a decade in content research. Twitter: @heyabenny

Have you received a voicemail from the “National Financial Hardship Loan Center” stating you’ve been approved for a hardship loan of up to $50,000? As tempting as a five-figure loan may sound, this is an outright scam that aims to steal your money and personal information.

Scammers are using increasingly sophisticated techniques like AI-generated voices to impersonate real loan officers. But make no mistake – any call from the so-called National Financial Hardship Loan Center is 100% fake. Read on to learn how this scam works how to protect yourself and what to do if you’ve been targeted.

How the Scam Works

The pre-recorded voicemail will be from a “representative” named something generic like John Smith. He’ll claim to be following up about a financial hardship loan you’ve been approved for.

The message urges you to call back a phone number with an 888 or 877 area code to provide your details to receive the loan between $10,000 to $50,000. Of course, no such loan exists.

This is just a ploy to get desperate borrowers to call back and hand over sensitive information or an upfront fee. Victims report being asked to verify their name, birth date, Social Security number, and bank account details.

With these personal details, scammers can steal your identity, drain your accounts, and open fraudulent new lines of credit.

Recognizing the Red Flags

While the AI-generated voice sounds disturbingly realistic there are several red flags that indicate the National Financial Hardship Loan Center is a scam

You didn’t apply for a loan – If you receive an unsolicited loan offer out of the blue, it’s likely a scam. Legitimate lenders won’t promise you money without an application.
Too good to be true – Real lenders will not lend $50,000 without checking your credit, income, and ability to repay. Claims of guaranteed approvals should raise alarms.
Request for personal information – Giving out your SSN, bank account numbers, or other private data to an unverified stranger is never advisable.
Request for upfront fees – Scammers often ask for money upfront to “process” the fake loan. Legit lenders deduct fees at closing, not before approval.
Threats or urgency – Scammers try to rush or pressure you into acting now by claiming the offer is only good for 24 hours or that your “loan is pending cancellation.”
Spoofed caller ID – The scammers use technology to fake real phone numbers, often spoofing real government agency numbers.

Who’s at Risk of This Scam?

While anyone can fall victim, the National Financial Hardship Loan Center targets those suffering with debt or financial hardship. Other high-risk groups include:

Elderly people
Military members and veterans
Immigrants
People with bad credit or limited financial knowledge
Anyone named on marketing lead lists

Scammers know these groups may be so desperate for a debt relief lifeline that they’ll overlook the red flags.

How to Protect Yourself from This Scam

Here are some tips to avoid falling for the fake National Financial Hardship Loan Center call:

Never pay upfront fees – Real lenders never ask for fees until after approval. Requests for advance fees are a huge red flag for a scam.
Verify legitimate contact info – Call the company back using the number on their official website, not the number left in the voicemail.
Ask detailed questions – Don’t be afraid to probe a lender with questions about loan terms, rates, origination fees, etc. Scammers won’t have as many details.
Review privacy policies – Only provide sensitive information after vetting a company’s privacy policy on data security and sharing.
Consult reputable sources – Check the Better Business Bureau, consumer watchdog sites, and state regulators for complaints before providing personal information.
Monitor your accounts – Watch for any suspicious credit checks, withdrawals, or new accounts, which could indicate fraud.

What to Do If You Were Scammed

If you already fell for the National Financial Hardship Loan Center scam, take these steps right away:

Contact your bank – Alert your bank to any unauthorized charges or withdrawn funds. Your bank may be able to reverse transactions in progress.
Change account passwords – If you provided account numbers, change your passwords and security questions.
Monitor your credit – Check your credit reports frequently for any fraudulent accounts opened in your name.
Freeze your credit – Placing a credit freeze restricts access to your credit reports and makes it harder for scammers to open new accounts.
Report it – File reports with the FTC, FBI, FCC, and your local authorities to help prevent others from being scammed.
Warn others – Share your experience so friends, family, and colleagues can avoid this predatory scam.

The Bottom Line

Phone calls from the fake National Financial Hardship Loan Center are an outright scam designed to steal your money and personal data. While the AI voices sound convincing, rely on your skepticism rather than emotion. Never pay upfront fees or hand over sensitive information to unverified strangers. Spreading awareness is key to protecting vulnerable groups from being victimized.

What Is the Financial Hardship Department Scam?

The Financial Hardship Department scam is a phone or email scam that claims to extend financial relief to you, while disguised as a government agency or financial institution.

The goal is usually to prise personal information such as your Social Security number (SSN) â or to have you click on a malware-laden link, infecting your device.

While these scams often follow a similar pattern, fraudsters employ different tactics each time. You might be offered student loan forgiveness, an assistance program, credit repair, or a pre-approved loan. Hereâs how these scams generally unfold:

You receive a robocall or email about a pre-approved debt relief loan. Youâre contacted and told that youâre pre-approved for a financial assistance loan (typically $37,000). Be cautious, even if it sounds like youâre talking to a real person; scammers have begun using AI voice clones to make their schemes seem more convincing [*].
To claim your loan, youâre asked to contact your representative or download and complete a form. Since your case has an alleged âpendingâ status, youâre asked to contact an assigned representative in order to confirm eligibility. However, legitimate financial institutions and government websites do not elicit personal information without verifying your identity first.
Once you call the number, youâre asked to provide personal information and pay an upfront fee. The caller requests information such as your name, address, and SSN â all of which can then be used to open fraudulent, new accounts in your name. They might also request a âfeeâ (to process your application or begin the relief process), which is pocketed by the scammer.
If you download any attachments, they will infect your device with malware. The goal of many of these types of scams is to entice you into downloading an attachment that contains hidden malicious software. You might be asked to download and fill out a form or loan agreement â when, in fact, youâre giving the scammer access to your device.
The scammer gains access to your device, documents, and other personal information. With direct access to your device, thieves are able to open, corrupt, move, and even erase sensitive files and other documents. If you have any personal information stored on your device â as most people do â you may be at risk of potential identity theft and fraud.

With American households holding more than $16 trillion in debt, it isnât hard for scammers to find a few compliant victims [*]. The Federal Trade Commission (FTC), for instance, is sending more than $3.3 million to 37,844 debtors who were fleeced by Arete Financial Group [*].Â

Like most illegal student loan debt relief schemes, Arete Financial Group falsely promised to eliminate or substantially reduce monthly payments. But they never delivered, leaving borrowers worse off than before.

Do not disclose personal information

If you receive a call youâre not expecting that displays an unknown caller ID, never give out any of your information â even your name â until you verify that any callers are who they say they are.

How to verify a caller or senderâs identity:

Ask questions, or ask to call them back later. Real companies â especially those that handle finances â will welcome any questions you may have. Scammers, on the other hand, will be circumspect in their solicitation and pressure you into taking swift action. If youâre unsure about someoneâs identity, simply hang up and contact the company by calling its official number.
Do a reverse number search. A reverse number search can help you identify the person or company from whom youâve received a call. Some phone number lookup services also flag numbers that may have been reported as being used by scammers.

National Financial Hardship Loan Center Offers $36,000 Over The Phone – Is It Scam Or Legit?

FAQ

Why am I getting calls for a hardship loan?

A malicious scam has been surging lately, as reported by TNS’ Robocall Protection team, targeting individuals who carry debt and are looking for a lifeline. Callers claiming to be from a ‘financial hardship loan center’ are attempting to steal victim’s information or worse, digging them deeper into debt.

Are financial hardship loans legitimate?

Hardship personal loan programs are offered by many small banks and local credit unions. This type of loan tends to have low interest rates, low maximum loan amounts, and short repayment schedules. You may have to prove that you have genuine financial difficulty to qualify for a hardship loan.

What is the national financial hardship?

The Financial Hardship Department scam is a phone or email scam that claims to extend financial relief to you, while disguised as a government agency or financial institution.

Is there a such thing as a hardship loan?

Hardship loans are personal loans that typically come with fixed interest rates and payments that are due monthly until you repay the balance. After getting approved for a hardship loan, you’ll receive a lump-sum payment via direct deposit or check.

Is the financial hardship Department a scam?

Fortunately, the “Financial Hardship Department” is a well-documented scam, both in phone call and email form, which makes it a little easier to dodge. A month ago, a Reddit user posted an email with near-identical wording to the voicemails I’ve been getting, and seven other users chimed in that they’d received the same one.

Is there a ‘financial hardship Department’?

There is no official United States government agency or organization called the “Financial Hardship Department.” But with credit card debt reaching an all-time high of $930 billion, unrelenting scammers want you to believe that such an entity exists [ * ].

Are there any government subsidies for hardship loans?

SCAM. There are currently no existing government subsidies for hardship loans. I got the same type call. I never applied for a loan if any kind. They’ll likely ask for a fee to process the fake loan, and/or your bank account information for a supposed immediate deposit. Just a guess, as I’m not returning the call.