ECONOMY & WORK
MONEY 101
NEWS
PERSONAL FINANCE
NET WORTH
About Us Contact Us Privacy Policy Terms of Use DMCA Opt-out of personalized ads
© Copyright 2023 Market Realist. Market Realist is a registered trademark. All Rights Reserved. People may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.
MARKETREALIST.COM / NEWS

All About the 'Sugar Daddy' Scam Which is Luring Victims Looking for Love and Stability

In 2022, 70,000 individuals fell victim to romance scams, losing $1.3 billion in total.
PUBLISHED FEB 3, 2024
Cover Image Source: Sugar Daddy Scam | Pexels | Photo by Vija Rindo Pratama
Cover Image Source: Sugar Daddy Scam | Pexels | Photo by Vija Rindo Pratama

With the evolution of technology, many now turn to online dating apps in the pursuit of lifelong companionship. However, a significant challenge has emerged with the surge in online dating scams, as scammers are exploiting the platform not only to manipulate individuals into false romantic relationships but also to extract money from them while playing with their emotions. The Better Business Bureau (BBB) has issued a warning, urging caution and emphasizing the need not to blindly trust individuals encountered online.

Save yourselves from getting scammed in love. |Pexels
Image Source: Save yourselves from getting scammed | Pexels

BBB underscores the severity of the issue by citing reported cases where victims have suffered financial losses amounting to hundreds of dollars. One victim shared a regrettable experience, recounting a personal savings loss of approximately $19,500. These apps mostly target users on platforms like Facebook, TikTok, Instagram, and various dating apps. 

Nowadays, exercising caution when engaging with individuals on social media or dating apps is necessary. BBB has sounded an alarm regarding a new scam wherein scammers pose as "sugar mommas" or "sugar daddies." Exploiting casual connections, these fraudsters promise a weekly allowance for affection, concealing their true intent of orchestrating a fraudulent scheme to run away with the victim's money.

Image Source: Pexels/Tero Vesalainen
Image Source: Pexels | Photo by Tero Vesalainen

The scam starts off with the perpetrator sends a check or simulates a fund transfer through platforms like PayPal or Cash App, labeling it as the promised "weekly allowance" after eliciting a small favor. Once victims are lured, they are coerced into transferring a portion of the received funds for various purposes such as bill payments, purchasing gift cards, facilitating third-party transfers, or making substantial donations to fictitious charitable organizations. Falling prey to these deceptive tactics, victims end up losing significant amounts of money in search for love.

Regrettably, the accounts utilized for settling credit card balances in this scheme are fraudulent. Once the credit card company detects the deception, the recently deposited funds vanish from the account, leaving the victim liable for both the initial balance and the expenses incurred through the purchase of gift cards.

Image Source: Pexels|Photo by RDNE Stock project
Image Source: Pexels | Photo by RDNE Stock project

To avoid falling victim to such scams, individuals must recognize potential red flags. These include avoiding sharing sensitive information such as banking details, home address, or mobile number with new romantic interests. Additionally, one must raise suspicions if a supposed sugar daddy offers to pay off debts or urges the individual to take their conversations from dating websites to more private channels.

Finally, victims who suspect they are dealing with a scammer or have already fallen prey to a scam should contact their bank or financial institution immediately, even though the recovery of lost funds may not always be possible. Such prompt actions can help mitigate further damage by blocking access to compromised accounts.

While sugar daddies and mommies can bring financial support along with companionship, scammers exploit these dynamics. It is important to stay vigilant for fraudulent individuals posing as such figures, particularly in the world of online dating, where scams exist in large numbers and can drain you emotionally and financially.

MORE ON MARKET REALIST
According to the expert, personal letters and a signature from Tolkien himself added to the value of the book.
7 hours ago
Chistina and Katie Currie won over $88,000 in cash and two exotic vacations with their stunning performance.
8 hours ago
After everyone backed out, the billionaire Shark stepped up to help the founder of Diaper Dust.
1 day ago
Sun kept repeating the incorrect phrase but couldn't identify the error in time.
1 day ago
After almost closing a deal with Mr Wonderful, the founder of 'Simply Good Jars' pivoted hard.
1 day ago
The host thought it was the "worst possible answer" to give even as the team felt it was good enough.
2 days ago
Adding to the controversy, the owner of Dr. Mudd's lapdesk asked Harrison for $100,000.
2 days ago
With just milliseconds to spare, Sarah LaPilusa pulled off an incredible Bonus Round win.
2 days ago
Ozark Trail 64 oz Water Bottles were recalled after the lids of faulty bottles forcefully ejected.
3 days ago
The player laughed and giggled her way through the puzzles to win prizes worth over $57,000.
3 days ago
Scott Riccardi placed an unbelievable wager during Final Jeopardy! to win a massive amount in a day!
3 days ago
The guest got a 200% return on investment on her sculpture that she bought from Macy's.
3 days ago
Jennings had a record-setting winning streak as a contestant before he became the host.
4 days ago
The player, Ron Wheeler, tragically got no clues after his letter picks for the final puzzle.
4 days ago
The former kids champion, Skyler Hornback knew what was coming.
4 days ago
The fans took issue with the clue being too tough and unnecessary for the contestants.
5 days ago
Cuban wanted to strike a deal with the founder of Coconut Girl and gave her an ultimatum.
5 days ago
Although the word did make a lot of difference, some fans felt that the decision was ridiculous.
5 days ago
The guest, who found the item online, didn't think it was the real deal until he heard its value.
6 days ago
The player Samantha secured the first big win of Ryan Seacrest's run on the show.
6 days ago