Beware of the National Financial Hardship Loan Center Scam

The National Financial Hardship Loan Center may sound like a legitimate government agency that provides financial assistance, but it is actually a cunning scam. This bogus center targets vulnerable individuals with promises of approved loans and grants that require no repayment. However, it is all a ruse designed to steal money and personal information from unsuspecting victims

This scam has been rampant across the United States, with many reporting receiving calls, voicemails, and even physical mail from the so-called National Financial Hardship Loan Center. The con artists behind this scam are bold in their tactics and can be very convincing. But being aware of how this scam works can help you avoid becoming another victim.

How the Scam Works

The scam typically begins with a phone call pre-recorded voicemail, or official-looking letter from the “National Financial Hardship Loan Center.” The message professes that you have been approved for a loan or grant worth thousands of dollars to help with financial hardship.

Some key details the scammers may provide:

• You are pre-approved for a loan or grant ranging from $10,000 to $50,000
• The funds do not need to be repaid
• The program is from a new government agency providing COVID relief
• Your eligibility is confirmed and funds will be disbursed upon providing personal information

If you respond to the call, message, or letter, the scammers pose as representatives of the fake agency. They will request your Social Security number, bank account details, and other personally identifiable information allegedly needed to deposit the “approved” funds into your account.

However, this is all just a scam tactic to steal your private data. In reality, there is no loan or grant, and the scammers will drain your bank accounts and open fraudulent credit lines once they gain your information.

Spotting the National Financial Hardship Loan Center Scam

While the con artists behind this scam can sound official and persuasive, there are several red flags that can help expose their lies

✘ The agency and loan program do not exist – There is no real “National Financial Hardship Loan Center” or special COVID relief program issuing grants that require no repayment. These are completely fabricated by scammers mimicking government assistance agencies.

✘ Unsolicited contact – Legitimate lenders will not call, email, text, or mail you unprompted claiming you are “pre-approved” and require fast action to receive funds. Be wary of any unsolicited communications about loans or grants.

✘ Request for personal information – Real government agencies will not call or email asking for your Social Security, bank account or credit card numbers. Only scammers will request this info under the guise of required documentation for approval.

✘ Pressure to act quickly – Scammers will insist you act right away and try to create false urgency around the process. A refusal to provide loan details unless you first provide personal data is a huge red flag.

✘ Promise of guaranteed approval – Financial approvals do not work this way. No legitimate lender or agency will promise guaranteed funds without reviewing your credit, income, and eligibility first.

Being able to spot these and other red flags of a scam can help protect you from their deceptive tactics.

Who is Targeted by This Scam?

The National Financial Hardship Loan Center scam casts a wide net, but often targets:

• Senior citizens
• Unemployed individuals
• Low-income families
• Those with bad credit
• Small business owners

These groups may be in greater financial need, making them more vulnerable to the scammers’ high-pressure tactics and fake offers of “free money.” However, anyone could become a target of this scam. The con artists send out countless calls, voicemails, texts, emails, and letters trying to reach as many potential victims as possible.

No matter your financial situation, remain vigilant of these scammers and do not provide personal or banking details to the National Financial Hardship Loan Center or any other unsolicited loan agency.

Scam Victim Stories

Understanding the real-life impact of this scam can help drive home the severity of the threat. Below are some examples of people who unfortunately fell victim after contacting the fake National Financial Hardship Loan Center:

• Richard from Florida – After receiving a voicemail about being approved for a $25,000 COVID hardship grant, Richard called back to claim the funds. The scammer posing as a caseworker collected his social security number, bank information, and other personal data before draining his checking account of over $10,000.

• Andrew and Sarah from Ohio – This elderly couple received a letter guaranteeing them a $50,000 loan for small business relief. After mailing back their social security cards, driver’s licenses, and a voided check as requested, the scammers stole their identities and made over $30,000 in purchases in their names.

• Emily from California – Emily was struggling financially due to COVID-19 reduced work hours. When she got a call approving her for a $12,000 hardship grant, the single mother provided her info, only to have her identity stolen and over $8,000 charged on fraudulent credit cards opened in her name.

These stories illustrate how easily trusting people can be exploited by these scammers. Never provide personal information or banking access to someone who contacts you unsolicited about “free money” loans or grants.

How to Avoid the National Financial Hardship Loan Center Scam

While scammers use convincing tactics, you can take action to detect and avoid their lies:

• Be skeptical of unsolicited calls, texts, emails: Ignore suspicious communications from unknown numbers making bold claims about guaranteed loans or grants. These are likely scams.

• Verify legitimacy: Do not rely on caller ID. Research any company name, phone number, and email or website provided against trusted government and consumer resources.

• Never pay fees upfront: Real lenders will not ask you to pay processing fees before approving any funds. Advances fees are always a red flag.

• Guard personal information: Never give sensitive info to unverified sources. Real lenders and agencies won’t need this until eligibility is confirmed.

• Use secure passwords: Use strong, unique passwords on your computer, accounts, and mobile devices in case a scam does compromise your data.

• Check your statements: Routinely review bank and credit card statements for any fraudulent charges. Report discrepancies immediately.

• Sign up for scam alerts: Services like the Better Business Bureau’s Scam Tracker provide alerts on the latest scam schemes to help you stay informed.

Who Can You Contact About This Scam?

If you received a suspicious contact from the so-called National Financial Hardship Loan Center, report it:

• Better Business Bureau (BBB) – File a scam report with the BBB so they can warn others and track emerging fraud schemes.

• Federal Trade Commission (FTC) – The FTC works to expose and stop scams and identity theft. File a complaint online or call 877-FTC-HELP.

• State authorities – Contact your state attorney general’s office or consumer affairs agency to report the scam in your area.

• Local FBI office – The FBI investigates financial scams. File an online complaint or contact your nearest field office.

• AARP Fraud Watch Network – Report scams and fraud to AARP’s dedicated helpline at 877-908-3360.

The more reports filed, the quicker authorities can work to shut down scams and warn potential victims in their state or community. Do your part by reporting any contact attempts from the fake National Financial Hardship Loan Center.

Final Thoughts on Identifying This Scam

This con highlights how scammers exploit difficult financial situations and disasters like the COVID-19 pandemic. The false promise of guaranteed approval for loans and grants with no credit checks or repayment needed is enticing yet unrealistic.

With scammers growing more sophisticated, it is crucial to exercise caution when receiving unsolicited communications about financial relief. Do your own research, consult trusted financial or legal advisors, and never hand over sensitive information or payment to an unverified source. Staying vigilant and informed is your best defense against predatory scams like the National Financial Hardship Loan Center scheme.