Sugar Daddy / Sugar Mommy Scam
A fraud in which the scammer poses as a wealthy sponsor offering financial support in exchange for companionship, but extracts money from the victim before any payment arrives.
Also known as: fake sugar arrangement scam, overpayment romance scam, allowance advance scam
Last reviewed: 10 June 2026
In the sugar daddy or sugar mommy scam, the fraudster presents themselves as a wealthy individual seeking a paid companionship arrangement. They promise weekly allowances, gifts, or large lump sums to the victim in exchange for attention. To establish credibility, they may send a cheque or digital payment that appears to clear the victim's account.
The victim is then asked to return a portion — often to cover 'taxes', 'transfer costs', or a test of good faith — before the main payment is finalised. The initial deposit is fraudulent (a bounced cheque, a reversed bank transfer), and the funds the victim returns from their own account are lost. This variant exploits both financial need and the desire for a transactional relationship.
No legitimate arrangement of this kind requires the recipient to pay money back before receiving their agreed compensation. A request to return any portion of a payment before it has fully cleared is a definitive indicator of a fraud.
Examples
- A victim receives a $3,000 Zelle payment from a new 'sugar mommy'; they are asked to buy $500 in gift cards and send the codes as a first week's task before the relationship officially begins. The original payment later reverses.
- A cheque for a generous weekly allowance arrives, and the victim is asked to wire back a portion to cover the sender's transfer costs before it clears.