Blessing Looms are just pyramid schemes in disguise
Just when we think we’ve come across all the scams designed to swindle you out of your stimulus check, we’ve come across a new one. Or rather, an old one in a new coat of paint. They’re called ‘Blessing Looms’ and they promise you can make your initial investment back several times. Investment into what you may ask. That’s just it. You’re not really investing in anything at all.
The typical diagram of a blessing loom can be seen above. The way it works is there is a circle of people who all put in the same initial investment. It can be as little as $10 or as much as say $1,200 just to use a figure that’s been in the news. The person on the inside of the ring recruits two people to fill the next ring. Then they recruit two people each to fill the next level of the ring and so on. Once the ring is full, the person in the middle gets all the investments from that loom. Then people gradually move closer towards the center of the ring where they’ll eventually make it to the center. The money is usually sent to your recruiter through apps like Venmo, Cash App, and the like.
While the shape may be different, the so-called Blessing Loom also goes by another name, the pyramid scheme. The only difference is the way the scam is presented. As with most pyramid schemes, the problem with Blessing Looms is that only the people that get in first are the only ones who usually make money. The more the circle expands the more difficult it becomes to recruit new members leaving most participants at a loss. These Blessing Loom scams have seen a dramatic uptick on social media after the stimulus payments were announced.
[youtube https://www.youtube.com/watch?v=UJm_DYtmo0U%5D
Even if you think it’s just a small investment so what could it hurt, keep this in mind. Pyramid schemes are illegal. If there is actually no product being purchased then it’s an illegal pyramid scheme. So not only could you find yourself out of money but you could find yourself in legal trouble as well.
Remember, you can’t make money just by giving someone else your money.
Blessing Loom pyramid scheme is back | Greg's Corner 8:00 am on August 25, 2020 Permalink
[…] about the Blessing Loom pyramid scheme, scammers were trying to take advantage of people who had just received their economic impact payments. Now, we’re seeing reports of the pyramid scheme returning to social media if it ever left at […]