BBB warns of 'sugar momma', 'sugar daddy' romance scams online
HOUSTON - The Better Business Bureau (BBB) Scam Tracker is warning people online of a new romance scam, where people pose as "sugar mommas" or "sugar daddies," promising to pay your bills in exchange for affection. However, BBB reports, the seemingly generous offer is an act to get money from victims.
How the Scam Operates
The scam involves receiving a message through dating or social media apps from someone claiming to be a "sugar momma" or "sugar daddy." They promise a "weekly allowance" ranging from hundreds to thousands of dollars in exchange for your affection.
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The scam artist typically sends a check or pretends to transfer funds into your bank account or through apps like Cash App, PayPal, or Apple Pay. According to BBB, they will tell you to keep most of the money as your "weekly allowance," but then ask for a small favor such as sending a portion of the money to their needy friend, paying an outstanding bill, buying a gift card, or making a donation to a fraudulent charity.
Some victims have reported scammers demanding reimbursement for transaction or processing fees, often in the form of Bitcoin.
One victim shared their experience with BBB Scam Tracker, saying, "I believed that these checks were legit and the funds were real. I ended up just sending my own personal money to these contacts... Which ended up costing me $19,500."
People should also beware of other variations of the scam. Some victims have reported scammers requesting access to their bank accounts for deposit purposes. In such cases, victims find their accounts restricted, with scammers refusing to verify unless sensitive information, such as Social Security Numbers and IDs, is disclosed.
Avoiding similar scams
To safeguard against falling victim to such scams, consider the following precautions:
Understanding Check Usage: Be aware of your rights and responsibilities concerning checks. Banks may make funds available before the actual transfer, and if a check is fraudulent, the bank reserves the right to recover the funds from you.
Research Your Date: Conduct thorough research on individuals you encounter online. Utilize reverse image lookup tools like Google Images to verify if profile photos are stolen from elsewhere. Search online for profile names, emails, or phone numbers to cross-reference information.
Question Profile Details: Ask specific questions about the details a profile provides. Scammers may struggle to recall or align their stories.
Be careful when sharing personal information: Never share money or sensitive personal information with someone you haven't met. Cease communication if anyone requests financial or personally identifiable information, such as credit card numbers, bank account details, social security numbers, or government ID numbers.
For comprehensive tips and information, visit the BBB website for more information.
If you come across a scam, whether you've suffered financial losses or not, report it at BBB.org/ScamTracker.