If you have seen something on Facebook about investing $100 and ending up making $800, you may not be alone. But several attorneys general around the country and the Better Business Bureau are warning you should just save your money.
Tom Stephens from the Better Business Bureau says something called “Blessing Loom” sounds exactly like a ponzi scheme or old fashioned chain letter, just online. To participate, you are asked to deposit $100 into the Paypal or Whatsapp account (of the person who invited you). That person then moves up the line so to speak and when they get to the top, they collect $800. But in order for you to move up, you are asked to recruit two more people.
“If you end up doing what’s asked, i.e. putting money into the Paypal account you can probably just kiss it goodbye,” says Stephens.
Stephens says it appears to e a typical pyramid scheme because you need to keep recruiting people so those at the head of the line can keep moving forward. “But sooner or later it collapses under its own weight because there are too many people involved and somebody always breaks it,” he says.
The BBB says you may want some quick and easy money but it’s unlikely you’ll get it by giving 100 bucks to a stranger. “If they want to throw their money away they can just write the check out to me, I’d be happy to take it,” said Stephens.