Blessing Loom, Gifting Circles called pyramid schemes - WITN

GREENVILLE, N.C. (WITN) - A new scam is slowly taking over social media and promising people an easy way to earn money amid the coronavirus pandemic.

Officials say the Blessing Loom or Gifting Circles are new versions of the old pyramid schemes.

Participants are promised they will receive thousands of dollars with little effort and a small initial investment. The scheme then relies on people recruiting new people to keep the scam afloat.

Katherine Hutt with the Better Business Bureau warns to be careful of getting involved. Hutt said, "They are a little bit more personal than a lot of scams and in that regard also can be more hurtful."

Kati Daffan with the Federal Trade Commission said no one group is being targeted and participation in one of these schemes is illegal. Daffan added, "Most people who get involved with it are going to end up losing money."

The Better Business Bureau also recommends not accepting friend requests from people you don't know. Also be wary of a second friend request from someone you are already connected with; the second profile may be an impostor trying to access your data and your friends list.

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