WICHITA FALLS, Texas (TNN) - The Better Business Bureau reports a popular social media game is promising huge returns on investments, but authorities are saying it’s actually illegal.
The scam is called a “Blessing Loom” but is also know as “Money Board,” “Gifting Circle,” and “Sou-Sou” or “SuSu."
The BBB says they’ve received 68 scam reports on “Blessing Loom” scams in the past year with consumers losing an average of $100 to $700.
Here’s how the scam works:
- The scammers send a direct message through social media from a friend, family member or possibly a stranger that invites victims to join a “Blessing Loom” or one of the names listed above
- The message usually says that it’s an opportunity to earn money while “blessing others” by investing a small amount through digital payment services like Venmo or Paypal
- The scammers then claim you can spread the wealth and see a huge return on the invested money by recruiting more people to invest
The BBB has identified this as a pyramid scheme, which relies on recruiting new individuals to keep the scam afloat. The money supply stops as people stop participating, leaving initial investors without their promised returns. The victims’ personal information may also be compromised.
The BBB has provided to following tips on how to avoid social media scams:
- Stay alert to pyramid schemes
- Be skeptical before accepting any offer on social media, even if the offer comes from a friend
- Monitor your friend requests: Don’t accept them from people you don’t know and be wary of a second friend request from someone you are already connected with
- Ask questions and research the offer before joining any business venture, what appears to be a legitimate could be a scam