Beware of National Financial Hardship Loan Phone Call Scams

Financial hardship is a reality for many Americans. With rising costs of living, stagnant wages, and predatory lending practices, an increasing number of people find themselves struggling to make ends meet. This harsh economic landscape makes the population vulnerable to financial hardship scams promising easy cash to alleviate money troubles. One such scam operation going national is the financial hardship loan phone call.

What is the National Financial Hardship Loan Phone Call Scam?

This scam starts with an unsolicited phone call from someone claiming to represent the “Financial Hardship Department.” The call uses robotic, artificially intelligent software to mimic a natural human voice and make the call sound legit.

The pre-recorded robocall message claims you have been “approved” for a hardship loan worth $30,000 to $40,000. All you need to do is call back to complete the process. Of course, it’s a complete scam designed to steal your money and personal information.

How the Scam Works

The AI technology utilized by scammers has advanced to the point where it’s becoming harder to discern real human voices from machine mimics. The Financial Hardship Department calls sound almost convincingly human.

The message content is also designed to catch targets off guard. Few people expect to receive cold calls informing them they’ve been approved for tens of thousands in financing. Hearing this can make victims excitably eager to call back right away.

Should you call the number, an actual human scammer will answer the phone. They pose as a loan officer or agent ready to help you through the application process. To move forward, they first need to “verify” some personal details and bank account information.

Of course, there is no loan. The scammers pocket your private data to commit identity fraud. They may also leverage bank account access to directly steal funds. Some victims reported unauthorized withdrawals after “applying” for these fake hardship loans.

surging Complaints Nationwide

While financial hardship scams are nothing new, reports indicate this specific robocall loan scam has recently exploded nationwide Online consumer complaint boards reveal

• Over 300 Reddit users from across 30 states reported receiving the AI Financial Hardship Department calls over the past two months

• One victim in Arkansas noted receiving nine identical voicemails in a single week

• A woman in Washington received 16 calls over three weeks, with multiple calls on the same day.

• A man in Florida claims he gets two or three voicemails daily about loan approval.

The breadth of complaints implies scammers are casting a wide net with automated calling technology. Unfortunately, this increases the chances of ensnaring victims who fall for the urgent promise of debt relief.

Recognizing Red Flags

The Financial Hardship Department calls may sound somewhat realistic thanks to advancing AI. However, several red flags can help identify this as a scam attempt:

• They contact you first. Legitimate lenders don’t make unsolicited approval calls. Especially not for loans worth tens of thousands of dollars. Any offer that seems too good to be true likely is.

• Quick action urged. Scammers want to rush you into providing personal information before you have time to think clearly. Don’t fall for high-pressure tactics insisting you act now.

• Request for money upfront. Real lenders process loans before you pay anything. Only scammers demand upfront fees to “unlock” or “access” financing.

• Poor English. Many scammers operate abroad using robocall technology to target US residents. You may notice awkward phrasing, grammar issues, or foreign accents indicating something suspicious.

• Threats or aggression. Scammers may get hostile if you start asking lots of questions or delaying the process. Threatening arrest, legal action, or immigration status verification is a huge red flag.

Who Do Scammers Target?

Financial hardship loan scams cast wide nets hoping to catch anyone in a desperate or vulnerable position. However, some demographics tend to get hit harder, including:

• Low income households: Those living paycheck to paycheck are more tempted by promises of quick cash.

• Unemployed: Job loss leaves people stressed and eager for income sources.

• Senior citizens: Many elderly people live on fixed incomes and are more trusting of perceived authorities.

• Small business owners: Entrepreneurs struggling with pandemic slowdowns need relief.

• Those with debt: Anyone behind on bills or payments wants an escape from debt burdens.

• Recent immigrants: New US residents may not be as familiar with predatory scams. Language barriers also leave them vulnerable.

• Other financial stress: Medical bills, divorce, student loans…any financial uncertainty can make targets desperate.

Scammers know people undergoing money troubles and uncertainty are emotionally vulnerable. This causes otherwise cautious individuals to let their guard down just when they need to be extra vigilant.

Tips to Avoid Financial Hardship Loan Scams

Here are some tips to protect yourself from predatory financial hardship loan scams:

• Be skeptical of unsolicited calls: Legitimate lenders won’t call out of the blue with loan approvals. These are always scams.

• Don’t provide personal info: Never give out your SSN, bank details, etc. to unverified cold callers.

• Research real assistance options: Government and nonprofit programs provide real financial relief options, like mortgage forbearance, without huge loans.

• Consult a financial advisor: Speak to an accredited advisor about your debt and options before agreeing to anything.

• Read the fine print: Get full loan terms in writing before paying anything. Watch for hidden fees and sketchy clauses.

• Report scam calls: Alert authorities like the FTC and file complaints about deceptive loan scammers. Share details to help warnings spread.

• Block repeat numbers: Your phone may have call screening and blocking capabilities. Use them on shady repeat callers.

The promise of a financial lifeline is enticing. But verify before sharing any personal data with cold callers. Don’t let scammers exploit hardship for profit.

How to Get Real Debt Relief

If debt burdens are weighing you down, there are legitimate options for finding financial relief without falling prey to scams. Consider these steps:

• Review federal and state programs that offer direct relief, loan consolidations, or other assistance. Government sites like Benefits.gov can help you find programs you qualify for.

• Contact creditors directly to request hardship assistance. Many have special programs in place and are willing to work with people navigating personal financial challenges.

• Speak to a non-profit credit counseling agency like NFCC to go over your full financial picture and create an action plan. They can help manage debt negotiations and payments.

• Consult an attorney specializing in debt relief for customized guidance. They help people legally stop collections, reduce balances, and restore financial health.

• Check if your employer offers any financial wellness programs with counseling or low interest loans to ease economic pressures.

• Consider debt management plans that consolidate debt into one payment at lower interest rates. This can make balances more manageable.

• Bankruptcy is a last resort option if no other debt relief steps work. This legal process eliminates many debts entirely. Meet with a bankruptcy lawyer to see if it’s the right choice.

The road to financial freedom from crushing debt can be long and difficult. But legitimate options exist to regain control without frauds trying to profit off your hardship. Stay vigilant against scams as you work towards economic security.