Better Business Bureau
The FTC issued an alert in May 2020 about a chain letter scam called a “blessing loom.” Our national office sent out a similar warning. I read both alerts, couldn’t quite understand how the scam worked, and decided it sounded so silly that it wasn’t worth writing a column about.
I’ve had to rethink that decision now that the FTC and the State of Arkansas have sued the operators of a blessing loom investment program they allege has bilked thousands of consumers out of tens of millions of dollars. The FTC says it’s nothing more than a pyramid scheme and that it targets African Americans struggling financially during the COVID-19 pandemic.
Social media investment scams go by various names besides blessing loom, including “The Circle Game,” “Money Board” and “Infinity Loom.” The mechanics also vary slightly, but the basic premise is that if you invest money in the program, you’ll get a lot more back while also bringing good fortune to others you recruit. In fact, as in other pyramid schemes, there’s no real product or investment and once the supply of new recruits runs out, the scheme collapses and most participants lose their investment.
Texas-based Blessings in No Time (BINT) promises people who join the program that they’ll realize investment returns as high as 800 percent. The minimum investment is $1,400 and some victims have paid in as much as $62,700. Invitations to join often come through Instagram, Facebook and messaging apps.
It’s hard to...
Read Full Story: https://www.jacksonsun.com/story/news/2021/09/17/social-media-investment-scam-targets-african-americans/8378179002/
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