WICHITA FALLS, Texas (TNN) - Pyramid schemes are one of the most widespread kinds of scams but now they’re moving online. The Better Business Bureau has some tips on avoiding them.
“The uncertain economy is making money tight for many people and an opportunity to make several thousand dollars sounds tempting, however, BBB urges consumers to ignore social media invitations to join in a pyramid scheme,” said Cosme Ojeda with the Better Business Bureau.
The way the latest Scam Works is:
A direct message arrives though social media. A friend invites you to join a “Blessing Loom.” The message explains that it’s an excellent opportunity to earn money while also “blessing others.”
All you need is a small investment of $100 and all you do is recruit a few other people to invest. They will recruit even more people, and, as the circle widens, everyone makes loads of cash.
The trouble is it relies on recruiting new individuals to keep the scam afloat. Once people stop participating, the money supply stops as well leaving lots of disappointed people who lose the cash they initially invested.
Tips to Avoid Social Media Schemes:
- Stay alert to pyramid schemes. Pyramid schemes promise quick profits for recruiting others and remember, they are illegal.
- Be skeptical. Just because something appears to be fun and was shared by a friend, doesn’t mean there isn’t an inherent risk.
- Monitor Friend Requests. Don’t accept friend requests from people you don’t know or a second request from someone you are already friends with.
As always, you can report scams like this to the BBB Scam Tracker online by clicking here.