Carr: Beware of Blessing Loom and Social Media Pyramid Schemes this Holiday Season
ATLANTA, GA – Attorney General Chris Carr is warning consumers to be on the lookout for a social media pyramid scam called the “Blessing Loom” this holiday season. The scam entices potential participants by telling them they can turn $20.00 into $160.00 over a short period of time. After joining and sending in their money, members are encouraged to recruit others to join the structure. Consumers should be very wary of offers on social media sites which falsely advertise that one can turn a small amount of money into a larger one through “gifting circles.”
“This is a classic pyramid scheme,” said Attorney General Chris Carr. “Not only is it illegal, there is a high probability you will lose the money you have invested. The bottom line, we are asking you to stay far away from these get-rich-quick schemes and help us spread the warning when visiting family and friends over the holidays.”
No products or services are sold in these schemes and the continued viability of the pyramid depends on income being generated by the recruitment of new members. While there is certainly financial risk involved here, Georgia Law also makes it a crime to participate, operate or promote a pyramid promotional scheme. Penalties range from fines to even prison time.