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  • Geebo 8:00 am on August 25, 2020 Permalink | Reply
    Tags: blessing loom, , , ,   

    Blessing Loom pyramid scheme is back 

    Blessing Loom pyramid scheme is back

    The last time we heard 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 all. With so many Americans having financial difficulty during the current crisis, the Blessing Loom could be finding new victims.

    While a Blessing Loom may be shaped like a circle, it’s essentially just window dressing for a pyramid scheme. In a Blessing Loom, someone will promise their victims that they can exponentially increase their initial ‘investment’ if they just recruit new people into the ‘loom’. In theory, once the outer circle of the loom is filled the person in the middle gets all the investments from that circle. Once you move to the center is when you’re supposed to get your big payout. Except, the only people who truly make money through these are the people who set it up in the first place. Once they receive the investment money through apps like Venmo or Cash App, your money is gone and you just made someone else richer for doing almost nothing.

    These pyramid schemes often go by other names as well with all of them designed to lull you into a false sense of security. Using such names as ‘Money Board’ or ‘Gifting Circle’, scammers will try to make these schemes appear as friendly as possible to try to recruit as many people as possible into their scheme.

    The other drawback to Blessing Looms besides losing your money is that they’re illegal. If you try to recruit someone into one of these circles, you could be held criminally responsible even if you’re not the initial organizer.

    As we’ve said before, you wouldn’t give a stranger on the street your money if they told you they’ll give you $500 if you give them $50, so why would you give it to someone on social media?

     
  • Geebo 8:00 am on April 21, 2020 Permalink | Reply
    Tags: blessing loom, , , ,   

    Blessing Looms are just pyramid schemes in disguise 

    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.

    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.

     
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