GREENVILLE, SC (WSPA) – Last week millions of Americans received a $1,200 stimulus check from the federal government due to the coronavirus. Since then scammers have been online in full force preying on those who are desperate to make more money.
The latest scam that has surfaced online over the past few days is known by some as the Blessing Loom, while others know it as the Giving Lotus. But no matter what nickname you want to give it, it’s simply just an old fashioned pyramid or ponzi scheme that is continuously rebranded.
The scheme starts with one person at the top of the pyramid, or in this case middle of the loom, and this is person who will see profit first without losing any money.
The person at the top recruits a six people who are willing to take part in the scheme, usually close friends or family, to join for free. This creates the illusion that the scheme is legit since other people have joined.
Together those 6 people keep inviting strangers in groups of eight and making them pay $100 each. Each time a new set of eight people join, the person in the middle of the loom gets $800, then another person moves into the middle to collect the next round of money.
This cycle continues until a person is unable to recruit more people and that’s when everyone begins to lose money.
As with any other scam, The Blessing Loom scam can be avoided by simply not giving money to strangers online, which could be especially dangerous because this scam requires participants to give out cash app information and could position them as a target for more scams.
According to the Greenville County Sheriff’s office, they have not received any cases locally about this scheme.
For more information on how to identify and avoid ponzi schemes, please visit page 12 of the Identity Fraud and Prevention and Resolution guide on the Greenville County website.