“Pre-approved” loan calls: how the scam works and what to do

Video · 12:06 · Watch on YouTube

Got a "pre-approved" loan call you never applied for? It is a funnel that ends in a fee that's hard to get back. Here is how unexpected loan calls work, from the list your number was on to the script, the fee and the payout, plus the free checklist from the FTC, FCC, CFPB, Federal Student Aid and the SBA Inspector General: red flags, what to do, what to do if you already paid, and where to report it.

How the call works

• Stage one, your number: the FTC says advance-fee loan scammers buy lists of the names of people who have searched or applied online for payday or other loans. FTC
• Stage two, the script: a "pre-approved" or "prequalified" offer for a loan you never applied for, often with "guaranteed approval" and no credit check, then a request for your SSN, bank account or birth date. FTC
• Stage three, the fee: a payment before any money arrives. The FTC says nobody legitimate guarantees a loan in exchange for a fee. FTC
• Stage four, the payout rail: gift cards, wire transfers, crypto or payment apps, which are hard to reverse once sent. If a caller asks for gift cards, it's a scam, the FCC says. FCC; FTC
• Caller ID can be spoofed, so a call that shows your bank, a lender or an agency proves nothing. FCC; FTC

Red flags on a loan call

• A "pre-approved" or "prequalified" loan you didn't apply for, then a request for your SSN, bank account or birth date. FTC
• Guaranteed approval, or a fee before you get the money. FTC
• Payment by gift card, wire, crypto or payment app. FCC; FTC
• Student loans: upfront or monthly fees, "immediate total forgiveness", a request for your FSA ID password, a third-party authorization or power of attorney, or "act now". Federal Student Aid; New York Attorney General
• Debt collectors: threats of arrest, or no validation information within five days of first contact. A collector can't have you arrested, or threaten to. CFPB; FTC
• SBA loans: the SBA emails only from @sba.gov. Someone promising SBA loan approval for an upfront payment is a fraud flag. SBA Office of Inspector General

What the agencies say to do

• Hang up and call the number on your statement or the official website, never the number that called. FCC; FTC
• Don't press a key to "opt out", and don't reply to scam texts. FCC; FTC
• Ask your carrier about call-blocking and labeling tools. FCC
• Register at donotcall.gov (1-888-382-1222). It stops legitimate sales calls, not scammers. FTC
• Research a site before entering your number. The fine print can let it sell your information. FTC
• Federal student loan help is free through your servicer or studentaid.gov. Federal Student Aid

If you already paid

• Gift card: call the issuer using the number on the back of the card. Say a scammer got the number and PIN. Keep the card and receipt. FTC
• Bank transfer, Zelle or debit: contact your bank or credit union and ask them to reverse it. FTC
• Payment app: report it in the app and ask for a reversal. FTC
• Wire transfer: contact the wire company immediately and ask for a refund. FTC
• Credit card: contact the issuer and ask for a refund. FTC
• Crypto or crypto ATM: contact the exchange or ATM operator immediately. Recovery is hard. FTC
• Cash by mail: the U.S. Postal Inspection Service, 1-877-876-2455, may be able to intercept it. FTC
• Gave your SSN: identitytheft.gov. FTC
• Gave your FSA ID: change your password. If contact info was changed, call Federal Student Aid at 1-800-433-3243, and ask your servicer to revoke any third-party authorization. Federal Student Aid

Where to report

Printable checklist and family guide (free, no signup): https://www.keepupacademy.com/loan-scam-checklist/. KeepUp Academy is a sister project from the team behind Undercurrent.

• FTC: reportfraud.ftc.gov (include the caller ID and any callback number).
• FBI Internet Crime Complaint Center: ic3.gov.
• FCC: consumercomplaints.fcc.gov.
• Scam texts: forward to 7726 (SPAM).
• Debt-collection problems: consumerfinance.gov/complaint.
• Your state attorney general.

Sources

1. FTC, "Ignore unexpected calls about loans you didn't apply for"consumer.ftc.gov/consumer-alerts/2025/09/ignore-unexpected-calls-about-loans-you-didnt-apply
2. FTC, "What to know about advance-fee loans"consumer.ftc.gov/articles/what-know-about-advance-fee-loans
3. FTC, "What To Do if You Were Scammed"consumer.ftc.gov/articles/what-do-if-you-were-scammed
4. FTC, "Can you spot a fake loan text scam?"consumer.ftc.gov/consumer-alerts/2026/01/can-you-spot-fake-loan-text-scam
5. FTC, debt collection alertconsumer.ftc.gov/consumer-alerts/2026/02/debt-collection-know-your-rights-avoid-scams
6. FTC, debt relief alertconsumer.ftc.gov/consumer-alerts/2026/03/looking-debt-relief-heres-how-avoid-scam
7. FTC, Robocall Scam Examples (real call audio)consumer.ftc.gov/features/robocall-scam-examples
8. FBI, Debt Collection Fraud Call Recordingfbi.gov/video-repository/debt_collection_fraud_call_recording.mp4/view
9. FCC, Stop Unwanted Robocalls and Textsfcc.gov/consumers/guides/stop-unwanted-robocalls-and-texts
10. FCC, Caller ID Spoofingfcc.gov/consumers/guides/spoofing
11. CFPB, "Can I be arrested for an unpaid debt?"consumerfinance.gov/ask-cfpb/can-i-be-arrested-for-an-unpaid-debt-en-1537/
12. Federal Student Aid, Avoiding Student Aid Scamsstudentaid.gov/resources/scams
13. New York Attorney General (Sept. 2, 2026)ag.ny.gov/press-release/2026/attorney-general-james-warns-new-yorkers-about-student-loan-scams
14. SBA OIG, Protect yourself from scamssba.gov/about-sba/oversight-and-advocacy/office-of-inspector-general/protect-yourself-from-scams-and-fraud/
15. Telemarketing Sales Rule, 16 CFR 310.4law.cornell.edu/cfr/text/16/310.4

Spot an error? Email corrections@undercurrentdaily.com. See our corrections policy. Have information about this case? Contact the investigating agency first.

Part of Follow the Money: fraud, scams and the plumbing beneath them · YouTube playlist