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 recently received a phone call from a company claiming to be the “National Hardship Loan Center” offering you an easy loan or grant? Unfortunately this is a common scam that is deceiving thousands of Americans. In this article we will uncover the truth about the National Hardship Loan Center and provide tips on how to avoid falling victim to this predatory scam.
What is the National Hardship Loan Center?
The National Hardship Loan Center is a non-existent government agency fraudulently claiming to provide loans and grants to people in financial distress. Scammers spoof caller ID to make it seem as though the calls are coming from a legitimate government organization. During the call, they promise loans or grants worth thousands of dollars that do not need to be repaid. However, it is all a scam to steal your personal and financial information.
This con has been reported on the Better Business Bureau’s Scam Tracker and Reddit forums like r/ScamNumbers. Victims say they receive voicemails and calls from people claiming to represent the “National Hardship Loan Center” approving them for a $36000 government grant. The scammers use the phone number 833-764-2790 and pressure people to provide personal information to receive the non-existent funds.
How the Scam Works
The scammers’ tactics involve convincing you that you have been approved for a government grant or loan worth thousands of dollars. They ask you to provide personal information like your Social Security number, bank account details, or credit card information to process the “loan” and receive the funds.
Once they have your information, scammers can steal your identity, drain your bank account, and open fraudulent credit cards to steal your money. And of course, you will never receive the promised grant or loan.
According to reports on the Better Business Bureau, victims say the scammers knew a lot of their personal information, like their name, address, and current financial situation. This helps earn the victim’s trust. But this is likely information purchased on the black market from previous data breaches.
The scammers pressure victims by saying the offer is only good for a limited time. This rushes victims into providing sensitive information without doing their research. Any supposed government agency that demands immediate payment or personal details is always a scam.
Who is Targeted by the National Hardship Loan Center Scam?
The National Hardship Loan Center scammers cast a wide net, calling thousands of people across the United States. Their robocalls go out nationwide to landline home phones and mobile numbers.
They seem to target those who are more vulnerable and likely in financial distress, searching for loans or grants. For example, the unemployed, seniors, single parents, veterans, and people with limited incomes are more susceptible to this scam.
Scammers are also targeting small business owners seeking relief loans during the COVID-19 pandemic.
Anyone who answers the National Hardship Loan Center call could become a victim. Stay vigilant and don’t trust any supposed government agencies calling with promises of free money.
5 Warning Signs of the National Hardship Loan Center Scam
Look out for these common red flags to identify the National Hardship Loan Center scam:
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They claim to be from a government agency – The National Hardship Loan Center is not a real government agency. Any organization stating they are affiliated with the government but asking for personal information is dubious. Real government organizations will not call out of the blue demanding sensitive details to release money to you.
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Requires upfront fees – Scammers often say you need to pay a small processing fee in order to secure the loan or receive your grant money. But real government organizations will never ask for money upfront. This is always a scam tactic.
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Asks for personal information – Whether it’s your Social Security number, bank account, or credit card, never share sensitive personal information with unsolicited callers. Scammers can steal your identity and money with these details.
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Promise guaranteed approval – There are never any guarantees when it comes to qualifying for government loans or grants. A promise of guaranteed approval is a huge red flag of a scam.
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Creates false urgency – Pressuring victims to act now or risk losing the offer is meant to bypass critical thinking. This urgent tone is used to scare victims into complying with demands quickly. Slow down and verify anyone asking for personal or financial information.
How to Avoid National Hardship Loan Center Scams
While this fraudulent loan agency sounds legitimate to unsuspecting victims, there are ways to avoid their trap:
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Never pay upfront fees – It’s illegal for companies to charge application fees for federal loans or grants. Hang up if they demand payment.
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Don’t trust caller ID – Scammers use spoofing technology to trick caller ID. So even if it looks like the call is coming from a real government number, it could be fake.
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Never share personal information – Never hand over sensitive details to someone who called you unsolicited, even if they claim to be the government.
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Research before providing info – Search online to verify if the agency exists and contact them through official channels before giving personal or financial details.
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Check for spoof calls – Search the phone number online to see if others have reported it as a scam call. You can also report scam calls to the FTC.
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Sign up for the Do Not Call list – Reduce unwanted calls by registering your number with the National Do Not Call Registry. It’s free and prevents legal telemarketers from calling.
Beware Gift Card Requests
A variation of the National Hardship Loan Center scam convinces victims to pay using gift cards. Scammers say you need to pay a small “verification fee” or “processing fee” before receiving the loan. They instruct victims to buy gift cards and read the numbers over the phone as payment.
Gift cards are like sending cash digitally. Never purchase gift cards for someone who called you unsolicited. Legitimate loan officers will never demand untraceable gift card payments.
Who to Contact if You are Targeted
If you receive a call from the National Hardship Loan Center or similar loan scam, take action:
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Contact the FTC: Report the scam call or fraudulent loan company to the Federal Trade Commission.
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Report to the BBB: File a scam report with the Better Business Bureau to help warn others.
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Report ID theft: If scammers obtained personal information, visit IdentityTheft.gov. Alert your bank too.
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Talk to your state attorney general: Your state AG office can investigate and may be able to pursue legal action against scammers.
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Request call blocking: Ask your phone provider to block or label suspected scam numbers. Also enroll in free scam call blocking apps like Nomorobo.
The Bottom Line
The National Hardship Loan Center scam tricks victims by offering an easy loan or grant and then stealing personal information. Protect yourself by understanding their tactics, verifying offers, and never paying upfront fees or sharing sensitive information with cold callers. Spread awareness about this scam to help prevent others from falling victim. Only work directly with reputable lenders and government agencies to explore loan or grant options.
Look for signs of phishing
Phishing emails â ostensibly from the government, your bank, or even a coworker â are designed to steal your personal information. While scam emails closely resemble official emails from companies that you know and trust, there are often telltale signs.
How to tell if an email is from a scammer:
- The senderâs âFromâ name and email address donât tally. Email scammers can update an email headerâs From, Reply-to, and Return-path sections to masquerade as âU.S. Department of Financial Hardships.â But, if you click on the senderâs name, it will reveal the actual email address that is being used to send the message. If the email address and name donât match, itâs a scam.
- The message is sent from a free or consumer email address (Gmail, Yahoo, etc.). Legitimate government agencies use official, branded email addresses that end with .gov.
- The message features mangled grammar or strange formatting. Messages and emails sent from actual government agencies undergo a certain level of appraisal before they are sent out. If youâre seeing strange errors, consider this a red flag.
Is the Financial Hardship Program Legitimate?
There is no official United States government agency or organization called the âFinancial Hardship Department.â But with credit card debt reaching an all-time high of $930 billion, unrelenting scammers want you to believe that such an entity exists [*].
Unfortunately, this makes them sitting targets for scammers who prey on disconsolate borrowers in search of debt relief.
Scammers track down vulnerable consumers and dangle fake hardship assistance â special forbearance or relaxed interest rates â in order to steal personal information.
In this guide, weâll explain what the Financial Hardship Department scam is, what to do if you receive a scam email or call, and how to know if youâre dealing with a scammer.
National Financial Hardship Loan Center Offers $36,000 Over The Phone – Is It Scam Or Legit?
FAQ
Is the National financial Hardship loan Center legitimate?
Is hardship personal loan legit?
Do you have to pay back national hardship loan?
What is a hardship loan and how does it work?
What is the Financial Hardship Department scam?
The Financial Hardship Department scam is when scammers dangle fake hardship assistance — special forbearance or relaxed interest rates — in order to steal personal information. In this guide, we’ll explain what the Financial Hardship Department scam is, what to do if you receive a scam email or call, and how to know if you’re dealing with a scammer.
Is there a ‘Financial Hardship Department’?
There is no official United States government agency or organization called the ‘Financial Hardship Department’. Scammers may try to deceive you by implying its existence due to credit card debt reaching an all-time high of $930 billion.
What is a hardship loan?
A hardship loan refers to funds borrowed during a financial challenge. Compare all options before you borrow. NerdWallet’s articles may be sponsored, but this does not affect our evaluations.
How do I get a hardship loan?
Some hardship loan programs will require you to prove that you are in genuine financial difficulty. It is worth looking at local banks and credit unions in your state or city, because small lenders are more likely to offer hardship loans. Compare offers.