Social Media is relatively new to the human experience. Ponzi schemes are as old as the hills. Put the two together and you get what one Attorney General is referring to as nothing more than an illegal get rich quick scheme.
The scam is called the Blessing Loom, and it’s perpetrated like this: A facebook user responds to a post promising a large reward for “paying forward” the amount of $100 to a designated paypal account. The user then recruits their own friends to do the same. The idea is that the user will then reap the benefit of their friend’s generosity.
It may seem odd or funny to some of us that anyone would fall prey to one of these scams. But to the more desperate and vulnerable among us, the promise of quick payday may obscure the obvious risks.
So if you see the Blessing Loom floating around your facebook feed this holiday season, be a pal and warn your friends to stay away.