Facebook Scams: Is ‘Blessing Loom’ a Huge Ponzi Scam? Promises $800 Pay out in Exchange for $100
Facebook is always full of multi-tiered affiliate scams and it is very important that users should know about them. Right from profile viewer apps to free iPhone/ Samsung offers, there are unlimited hoaxes and scams in the social media site. Now the latest money making scheme "Blessing Loom" is promising Facebook users of $800 if they can refer two other people to the scheme. Along with that, the user needs to deposit $100. "Blessing Loom" has all the signs of Ponzi scheme and authorities have already warned Facebook users not to join it.
Those who are looking for extra money during the holiday season may easily get tempted by "Blessing Loom". But, at the same time, people should remember that these types of money making schemes are mostly against the law and people can lose their investments, forget about profits.
In "Blessing Loom" scheme the user gets an invitation. Next, he will get a link to a chat via Whatsapp. When the person clicks the link, he sees a picture of a loom, which looks like a colorful cobweb. He also gets information on sending $100 to the PayPal account of the person who is in the center of that circle. The newcomer is provided with one of the 8 spaces outside the loom in exchange of $100. Now the person has to recruit people in the same manner to fill the spaces left. When the recruitment is completed the loom splits and the newcomer advances a level. Now it's his turn to be at the center and receive $800, as per AL.com.
Although this sounds very easy, the fact that "Blessing Loom" and other such money-making schemes are considered as unlawful cannot be avoided. Every state in the US has some law against such money-making schemes. Moreover, Facebook, as well as PayPal, also have regulations against pyramid schemes like this.
Dental Surgeon Emey Devoll is one of the victims of "Blessing Loom". She was interviewed because of her experience in the scheme and she said that initially, she profited from the scheme but eventually she had to return the money earned through it, reported WBRC.
Facebook users from Etowah County debated the scheme. Some said it was legal, others cited laws against pyramid schemes. WBRC also reported that they checked several Etowah County area law enforcement agencies but no one reported against the scheme.