“Password not accepted from server: 535 Incorrect authentication data” when sending with GMail and phpMailer

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The solution was to enable outgoing SMTP from the server settings.

On servers running cPanel’s WHM, this is located under WHM’s “Tweak Settings” section.

The option is to enable/disable – choose disable.

Caveat: Making this change will redirect outgoing SMTP connections allow accounts to make direct connections which may increase your odds of getting your server blacklisted.

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