Sugar Daddy wants bank info

Question

I have a sugar daddy who wants me username & password to my bank to send me my money. So what I did was I opened a new account with only $25 in it at a totally separate bank from my main one. Should I not share my info even though it only has $25 in it? I have never been a sugar baby before.

Answer 1

You asked,

Should I not share my info even though it only has $25 in it?

The answer is you should not share your info, even if the account only has $25 in it. In most cases, these scammers are after your identity, not your money. They don't literally want to steal your identity in the traditional sense, rather they want the ability to make transactions while impersonating you.

Basically, this person has dirty (illegally obtained) money in another account. They want access to your account so they can launder the money - move it through your account and onward to another account or format that will be hard to trace. Typically, the way this plays out is that there will be a transfer of money in to your account, and then a purchase of gift cards, or a western union transfer out of the account (both of which are basically untraceable).

Eventually, someone will discover the original, illegal money, and they will see that it was moved to an account with your name on it. This will implicate you in the crime. Meanwhile, the scammer is laughing all the way to the bank - they now have their stolen money, and no one can trace it to them, since it was moved through your account. Once the crime has been discovered, the original transaction that funded your account will be reversed, and you will be held liable for the entire amount (since it's your name on the account).

It can't be over-emphasized that access to your bank account means someone else can pretend to be you. If they commit a crime (laundering money) while pretending to be you, it will be you that law enforcement comes after.

Further, it's important to emphasize that the terms of use you agreed to when you signed up for your bank account strictly forbid you from sharing your username and password. By breaking those terms, you assume full liability for what the scammer does. Your bank will not be on your side when this all falls apart.

Answer 2

There is no need to share your username and password with anyone with regard to banking. Ever. There are other ways for you to receive money. Here are some:

• Have Daddy mail you a cheque. Obviously the slowest and least convenient. There is also the risk of the cheque bouncing between the time it is cashed and the time the money is spent, leaving your bank account short.

• Set up e-transfers with your bank. You give Daddy the email address to which he sends money. It lands in your account in a matter of minutes and you get an email notification when it lands. Some banks even allow you to waive the need for a security question/answer to receive funds. By this method Daddy has no access to your money once you receive it. He cannot take it back. He has no access to your private banking information. Most banks have no fees for receiving money, but they do put limits on the amount that can be sent per day, week and month. Contact your and his local bank to find out what those limits are. Typically a daily limit is $3,000, weekly is $10,000 and monthly is $30,000

• Get a credit card app from https://www.squareup.com. This app allows you to receive money from credit cards. The amounts can be disputed and Square can reverse a charge. Square typically charged 2.75% per transaction or 3.5% + 50 cents if you key in the card as opposed to swiping it. You may want to read up on Square's Acceptable Use policy. They will not handle transactions for anything illegal. a Sugar Daddy/Baby relationship may be considered too close to the line for them.

• PayPal. PayPal charges minimal fees to send and receive money, it lands in your account almost immediately, and can be transferred to a regular bank in 3 - 5 business days. No withdrawal fees are charged if you draw more than $100 at a time.

• Wire transfer. You will have to visit your bank to set up a deposit-only bank account. Give Daddy the account details for that account only. He can deposit, he cannot withdraw. Wire transfers have much higher transfer limits than E-Transfer and are similarly fast. Once the money is in the account, only you can move it to another account where you can spend it.